KUALA LUMPUR: The Malaysian Insolvency Department recorded 80,625 new bankruptcies from 2015 until August this year, said Minister in the Prime Minister’s Department Datuk Liew Vui Keong.
Liew who is in charge of law, said from the total, 7,871 cases were recorded from January until August this year.
“A total of 18,457 bankrupt cases were recorded in 2015, while 19,588 cases were recorded in 2016.
“In 2017, there were 18,227 cases and 16,482 cases last year,” he said during the minister’s question time at Parliament, here today.
Liew, who was responding to a question by Willie Mongin (PH-Puncak Borneo), said the youth were more likely influenced by the latest trends which leads overspending and in turn, bankruptcy.
He said the government has undertaken various efforts to reduce the rate of bankruptcy cases in Malaysia.
“It is undeniable that the youth today are influenced by the latest trends that are causing them to spend beyond their means.
“Among the government’s measures and strategies to help these groups include raising awareness and understanding of the consequences of bankruptcy.
“This awareness can be conveyed through education of prudent spending,” he said.
It is learnt that those aged between 35 and 44 accounted for the majority with 28,296 cases, followed by the 25- to 34-year-old group (20,461), 45- to 54-year-olds (20,353) and 55 and above (10,415).
Police and military personnel of undisclosed ages were recorded at 624 cases while those below 25 numbered 476 cases.
According to gender, men outnumbered more than doubled the rate of women bankruptcies with 56,173 versus the latter’s 24,452.
The Malays were attributed to having the highest number of cases, with 45,147 or 56 per cent, followed by the Chinese at 20,914; Indians at 9,127; and others at 5,437.
Liew also said the government is conducting education and awareness programmes through the Insolvency Department as well as via Bank Negara’s Credit Counselling and Management Agency (AKPK).
“Through education, we can raise awareness on bankruptcy to youths and students in 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.
He also touched on guarantors being dragged into bankruptcy by borrowers, and said the courts had to be fair to the banks and that it was difficult to prove that someone was a social guarantor.