Minister: Over 80,000 Malaysians sought bankruptcy from 2015 to 2019

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KUALA LUMPUR, Oct 17 — Malaysia registered 80,625 bankruptcies between 2015 and August 2019, Minister in the Prime Minister’s Department Datuk Liew Vui Keong told Parliament today.

Replying to Puncak Borneo MP (PH) Willie Mongin, Liew asserted that youths who are influenced by the latest trends made up the most cases as they typically overspend.

By age, the 35- to 44-year-old category accounted for the most with 28,296 cases, followed by 25- to 34-year-old band (20,461), 45- to 54-year-old (20,353), 55 and above (10,415), police and military personnel of undisclosed age (624); and those below 25 (476).

Men outnumbered women more than twice, with 56,173 versus the latter’s 24,452.

By race, Malays accounted for the majority of cases, with 45,147 or 56 per cent. They were followed by the Chinese at 20,914; Indians at 9,127; and others at 5,437.

The total number of bankrupts registered with the Insolvency Department was 300,908 at the time. Around 30,000 cases have been resolved.

To address the problem, Liew said the government is conducting education and awareness programmes through the Insolvency Department as well as Bank Negara’s Credit Counselling and Management Agency (AKPK).

“Through education, we can give awareness on bankruptcy to youths and students at higher education institutions to address this problem at the earliest stage. These programmes are meant to disseminate information, briefings and lectures on bankruptcy,” said Liew.

Touching on guarantors being dragged into bankruptcy by borrowers, Liew explained that the courts have to be fair to the banks and that it was difficult to prove that someone is a social guarantor.