The highest number of bankruptcy filings through May 2022 comes from Selangor with 72,608 cases. — Photo by Sayuti Zainudin
By Zarah Morden
Thursday, June 23, 2022 10:27 GMT
KUALA LUMPUR, June 23 – Almost 60% of the 46,132 Malaysians who filed for bankruptcy from 2018 to May this year were between the ages of 25 and 44, according to the latest data from the Insolvency Department.
Official data also showed nearly 42% of those who filed for bankruptcy over the past four and a half years cited personal loans as a factor leading to bankruptcy, followed by nearly 15% who cited buying a vehicle as a factor, and more than 13% declared bankruptcy due to a business loan.
“The fact that many of them are going bankrupt because of personal loans is something to worry about because we have no idea why they took out loans; they could have spent the money on something that was not a necessity.
“But it is also possible that these people take out loans to pay their debts. They should have sought advice from experts, for example, the Credit Counseling and Debt Management Agency,” said Dean of the Faculty of Human Ecology at Universiti Putra Malaysia, Mohamad Fazli Sabri. The star in a report published today.
Data from the Insolvency Department also showed a steady decline in the number of bankruptcies over the years.
Those who filed for bankruptcy totaled 16,482 in 2018; which fell to 12,051 in 2019; 8,351 in 2020; and 6,554 last year.
But Fazli said the decrease could be attributed to an amendment to the Insolvency Act in 2020 which raised the bankruptcy threshold from RM30,000 to RM100,000.
Credit Counseling and Debt Management Agency (AKPK) Corporate Communications Manager Sazlin Zainal Abidin said The star that the public should seek help from AKPK before applying for a loan and not just when already in debt.
“The public should approach AKPK even before taking out new loans. Then we’ll help them review their overall financial situation and advise them accordingly.
“Our consumer services are free and without the use of third-party agents,” she said.
She added that 85% of those who reached the end of AKPK’s debt management program managed to settle their debts and regain control of their finances.
The highest number of bankruptcy filings through May 2022 comes from Selangor with 72,608 cases, followed by the three federal territories of Kuala Lumpur, Putrajaya and Labuan combined (46,876) and Johor (32,441).