JOHOR BARU: Young Malaysians are being declared bankrupt because they spend more than they earn, says Minister in the Prime Minister’s Department Nancy Shukri (pic).
This trend was worrying because most of them had just started working but already had debt problems, she added.
“This younger generation are supposed to be the next leaders. Instead, we have those who are already facing financial difficulties at a very young age,’’ she told a press conference after opening an information programme for young people at the Home Ministry complex at Setia Tropika here yesterday.
Quoting figures from the Insolvency Department, she said there was an increase in the number of young Malaysians being declared bankrupts in the past five years.
She said there were nearly 22,000 cases last year, an increase from about 13,200 in 2007.
Within the first six months of this year, more than 12,300 young Malaysians had been declared bankrupt. They include 3,680 women.
“On the average, 70.22% of the cases are men,” said Nancy, adding that most of them have outstanding debts of RM30,000 or more and could not afford to settle their dues.
She said the high bankruptcy rate among Malaysians at a young age mainly resulted from defaulting on instalment payments on car, housing and personal loans.
Nancy said there had been celebrities who were also declared bankrupt but most of them declined to seek assistance from the Insolvency Department.
She added that aside from the department, those who have problems managing their finances could seek advice from the Credit Counselling and Debt Management Agency.
The Star/Asia News Network
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Rightways 
October 21, 2014 at 11:58 am
Housing or property loan is Good Debts because it is secured by the property. If borrowers or owners failed to pay their monthly installments, they lose their houses/properties but not bankrupt, as banks/fanciers would auction the property to get back the loans to you.
In fact, many investors do well and profitable using the ‘powers of leveraging’ in finance, a strategy can be fully explored only in the housing property investments, unlike other investments like the unit trust, bonds, shares and stock markets, etc.
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December 14, 2014 at 11:53 pm
As refer to bankruptcy laws in Malaysia. It may not help or support bankruptcy people to discharge or release faster. The laws only to slow down or limited bankruptcy people to find the money faster. Some of limitation like can not doing business by their own, can not work with spouse, can not going outside country to work and find the money back (If without passport), can not received money more then RM500 from others (Additional have to report to MDI) and etc. All this some time just limit or delay bankruptcy people to move forward only.
If somebody give you a chance as higher post to work, if you do not have own car to go work how you going to have chance to earn more money. Another issue like if you have interest to do small business by your own, how you going to move forward. JIM always need document and proof to submit then until certain time only you can apply to discharge.
Actually i would like to commented here the important point that Malaysia management is bad to control bank. A lot of bankruptcy people cause by bank unreasonable charge when the time borrower suffer or unable to pay installment time. At that time bank will try to take this advantage to charge you higher at least they can cover a bit loss when sure you bankruptcy. As a borrower, you are no permission to say anything. The bank will charge you until they happy only, whatever also inside bank control. Malaysia do not have certain department to help you all if bank doing unfair to borrower. Example they can lelong your home under market pricing 50% or more and let their friend or spouse to tender your home because borrower do not have money again and can not doing any action on that time. I understand when bank lelong your home time, they will come out lelong announcement but bank can delay or postpone again the lelong date if they received so many people will attend tender. At the end if lelong date announce again in short period of time given, the people come for tendering will minimum. So that time is their advantage…..HA!HA!!!
Malaysia only protect bank and do not protect nationally. Some of young people do not think about it bank will end up with what interest if you stack or unable to pay time. So, what advantage of Malaysia? At the end only slow down the Malaysia economic only if bankruptcy increase.
Hopefully our Malaysia top management can understand about it and do not just take care about rich businessman only.
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October 21, 2014 at 6:24 pm
Those who buy and invest in houses and properties are safe, wise and successful because property values are always appreciating in time as a hedge against inflation which makes money and loan values smaller and smaller, thus killing several birds in one stone!
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December 16, 2014 at 12:56 pm
If you cannot pay housing/property loans, you lose your houses and properties as the banks and financing institutions would auction your home and property to pay off your loans/debts.
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December 16, 2014 at 1:13 pm
Successful investors must learn how to use the ‘leveraging strategies’ in finance, which can be maximized in property investments, not in others like shares and stock.
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