KUCHING: Sarawakians dealing with debt can now find help closer to home as JK Debt Collection Sdn Bhd officially opens its branch in the state.
The company, established in 2022, is actively rolling out physical branches throughout Malaysia to create a ‘zero-distance’ approach to debt resolution.
Licensed under the Ministry of Finance, JK Debt Collection operates in full compliance with the Financial Services Act 2012 and adheres strictly to the industry’s ‘3 No’s Principle’ such as no violence, no intimidation, and no document forgery.
According to its founder, Datuk Branden Sim, the motivation behind opening JK Debt Collection’s branches in every state is to eliminate distance and make it easier for debtors to meet in person.
He shared that currently, the company operates six branches across the country, with plans to open a total of 14.
He noted that the company’s growing network includes a headquarters in Penang, branches in Selangor, Malacca, Johor, and a presence in Kota Kinabalu, Sabah.
The Kuching branch is its second in East Malaysia.
He pointed out that for JK Debt Collection, physical presence is more than a formality.
He noted that physical branches make it easier for clients to meet face-to-face and settle their debt problems directly.
Moreover, he said that the decentralised structure also brings flexibility to clients dealing with debt across different regions.
He affirmed that every branch is part of the same network, making access uniform regardless of location.
“Even if the debt originated in Kuala Lumpur, the debtor can come into our office here or anywhere in Malaysia. Our aim is to make it easier for people to reach us directly.
“If we only have a headquarters or branches in the Peninsular, people in Sarawak or Sabah would find it too far to come to us,” he told Sarawak Tribune.
Furthermore, the Sarawak expansion comes at a critical time.
Citing the Central Bank Malaysia’s 2024 Financial Stability Review, Sim said that more than 70 per cent of business owners in Malaysia particularly in Sarawak have experienced payment delays from clients, severely impacting their cash flow.
He also noted that over 57 per cent of bankruptcy cases involve individuals aged 25 to 44, and Malaysia’s household debt-to-GDP ratio remains one of the highest in Asia.
In light of this, he shared that the company’s next branches are expected to open in Kedah and Selangor by the end of the year, but East Malaysia will continue to be a focus in the near term.
He revealed that future sites such as Miri and Tawau are already being considered, with a timeline set for the next two to three years.
He added that the company currently has a team of 40 to 50 personnel nationwide, with around 20 stationed across Sarawak and Sabah.
He explained that JK Debt Collection specialises in recovering legitimate commercial debts such as unpaid invoices, land sale breaches, business loan disputes, and partnership investment conflicts.
The company firmly rejects illegal loan-sharking, gambling-related debts, and all unlawful financial activities.
Therefore, unlike traditional legal firms, Sim said that JK Debt Collection adopts what it calls a ‘legal class on-ground goal track’ approach.
This, he added, involves deploying trained negotiators who take the time to understand both the debtor’s and the creditor’s situation before working out a resolution.
“We will try to understand both parties’ situation. Then we will become the negotiator to negotiate how we settle the debt problems in between.
“So that makes it softer and easier to settle for each other,” he explained.
JK Debt Collection offers a two-track recovery model that combines legal documentation with in-person enforcement.
Within 48 hours of engagement, the company issues a legally binding Letter of Demand (LOD).
If the issue remains unresolved within seven days, mediators are deployed to conduct on-site negotiations, supported by police reports and video recordings using body cameras.
To ensure transparency and professionalism, Sim said the company equips its on-ground mediators with body cameras during recovery activities.
“This is to ensure the safety of both parties and to make sure our representative doesn’t make an offence during the debt collection,” he said.
He explained that all collectors must first pass an internal interview before undergoing a structured training programme.
“The training lasts around 30 to 40 days, depending on whether the recruit has prior experience.
“On top of that, training is provided by senior staff and professional lecturers, with courses designed to prepare them for real-world negotiations,” he added.
Sim said the company was founded in response to real-life business hardship.
He shared that nearly 37 per cent of business closures in Malaysia are linked to unpaid debts, citing examples where family friends were forced to sell off factories due to receivables amounting to RM500,000.
Sim said JK Debt Collection’s aim is to set up branches in every state, even small ones, so that people can meet face-to-face and resolve their debt issues easily.
“We want to provide a spot in every state, even just a small one, so that people can come in, talk to us, and sort out their problems face-to-face,” he said.
For those interested, clients can visit the new JK Debt Collection branch at 1st Floor, Block B-1-5, The Podium Street Mall, Lot 278, Block 208, Jalan Tun Ahmad Zaidi Adruce, 93200 Kuching.
Customer service is available at +6010 922 2383.
