Top Debt Collection Agencies in Malaysia (2025)
- HupLik
- Aug 1
- 3 min read
Updated: Aug 4
If you’re a business owner, creditor, or legal representative struggling with unpaid debts, hiring a reputable debt collection agency in Malaysia can help you recover what’s rightfully yours—legally, ethically, and efficiently. In this blog post, we’ll explore the top debt collection agencies in Malaysia, their unique strengths, and how to choose the right one for your needs.
What Is a Debt Collection Agency?
A debt collection agency is a third-party company that helps individuals or businesses recover unpaid debts. These agencies may work on a commission basis, purchase debt at a discount, or operate under a legal retainer. In Malaysia, most operate under the guidelines of the Credit Reporting Agencies Act 2010, though there’s currently no formal licensing body.
Whether you’re managing commercial debts, B2B transactions, or defaulted accounts, working with the right debt collection agency in Malaysia can streamline recovery without damaging customer relationships.
What to Consider When Choosing a Debt Collection Agency in Malaysia
When selecting a debt recovery agency, it’s important to weigh the following factors:
✅ Reputation and track record
✅ Specialization in your industry (e.g., B2B, consumer loans)
✅ Collection methods—ethical and professional
✅ Compliance with Malaysian laws
✅ Transparency of fees and commission
Top agencies also offer ethical debt collection practices, ensuring both recovery and brand protection.
Top Debt Collection Agencies in Malaysia
Here are some of the most recognized and reputable debt collection agencies in Malaysia as of 2025:
1. Era Kutipan Sdn. Bhd.
One of Malaysia’s longest-standing debt recovery agencies, Era Kutipan has over 18 years of experience. They focus on commercial and retail debt recovery with nationwide coverage. Their reputation for transparency and results makes them a strong contender for businesses of all sizes.
2. GK Soh Debt Recovery Agency
Specializing in commercial debt collection in Malaysia, GK Soh is known for its aggressive yet professional recovery tactics. They’re particularly well-suited for corporate and B2B collections involving high-value debts.
🔗 Listed on GoodFirms
3. LHO & Associates
LHO & Associates provides a full suite of services, including legal debt recovery, negotiation, and mediation. They work closely with lawyers, making them ideal if your case may require legal proceedings.
4. Nexus Millennium Sdn. Bhd.
Founded by experienced professionals in finance and law, Nexus Millennium is recognized for its consistent recovery results. They are trusted by SMEs and corporations alike for efficient debt resolution.
5. SV (Sheel Vision) Collection
Operating since 1999, SV Collection prides itself on ethical debt collection practices and customer confidentiality. Their long-standing presence reflects reliability and professional conduct.
Legal Debt Recovery vs Debt Collection Agencies
Many creditors ask: Should I go through a law firm or hire a collection agency?
Here’s a simple comparison:
Feature | Collection Agency | Legal Recovery |
Speed of Recovery | Fast (negotiation-based) | Moderate (legal process involved) |
Cost | Commission-based | Legal fees + court charges |
Authority | Limited legal authority | Court-enforceable |
Best for | Smaller debts, commercial collections | Large debts, repeated non-payment |
Legal recovery is often more enforceable, but using a trusted debt collection agency in Malaysia is often the first and most cost-effective step.
Frequently Asked Questions (FAQ)
Q1: How does a debt collection agency work in Malaysia?Agencies contact debtors via phone, email, or letters to collect on behalf of creditors. If negotiation fails, they may escalate to legal options.
Q2: Are debt collection agencies legal in Malaysia?Yes. While there’s no centralized licensing body, agencies must follow fair practices under the Consumer Protection Act and Credit Reporting Agencies Act 2010.
Q3: How much does a collection agency charge?Fees can range from 10% to 30% of the recovered amount, depending on case complexity and debt age.
Tips to Choose the Right Debt Recovery Service
When you’re comparing the best debt recovery agencies in Malaysia, keep these tips in mind:
Ask for a track record of previous recovery rates.
Ensure they comply with local debt recovery laws.
Read online reviews or request client testimonials.
Get a clear breakdown of fees and contracts before proceeding.
Final Thoughts
Hiring the right debt collection agency in Malaysia can significantly increase your chances of recovering unpaid debts. Whether you’re a startup, SME, or corporate enterprise, the agencies listed above have proven experience in commercial debt recovery, ethical collection practices, and fast turnaround times.
Need Help Collecting Debt in Malaysia?
If you're searching for an experienced, ethical, and efficient debt collection partner in Malaysia, reach out to us at Huplik Debt Recovery today. Our team specializes in legal and non-legal debt recovery, tailored for Malaysian businesses.
Comments