KUALA LUMPUR: The Congress of Unions of Employees in the Public and Civil Services (Cuepacs) wants heads of departments to address the rising cases of bankruptcy among civil servants.
Its president, Datuk Adnan Mat, said this call aligned with the Second Chance Policy on bankruptcy for those aged 40 and below who had debts not exceeding RM200,000.
Adnan said the policy could help prevent civil servants from being trapped in bankruptcy, as 3,265 out of 6.3 million civil servants were still listed as bankrupt.
"Although the number is relatively small, the impact of bankruptcy can affect productivity.
"Therefore, we urge all department heads, especially those in the Integrity Department, to take proactive measures to prevent civil servants from falling into bankruptcy.
"The Second Chance Policy should help ensure that they do not remain in this status for too long," he told a press conference today.
Cuepacs also advised civil servants to manage their finances wisely to avoid accumulating new debts that could lead to bankruptcy.
"The government's initiatives provide some relief for those burdened with significant debts, offering a way out of bankruptcy under specific conditions."
Last year, the government announced the Second Chance Policy, which aims to release about 130,000 bankrupt individuals, allowing them to continue with their lives and contribute to the country's economic development.
This was achieved through the amendment to Section 33C of the Insolvency Act (Act 360), which enables bankrupt individuals to be released from insolvency within three to five years from the time they submit their statements.
Adnan said Cuepacs welcomed the Second Chance Policy as it provided individuals with the opportunity to rebuild their lives.
"At the same time, they can reorganise their financial status.
"Those under the age of 40, in particular, face challenges early in their careers. This policy allows them to rebuild and improve themselves so that they can continue to provide the best service delivery to the people."
He said many civil servants facing financial issues failed to plan properly and had high commitments.
"Living in a city with a low basic salary often means they cannot afford much. As a result, they take on personal loans to provide for their families, such as paying for housing deposits.
"Ultimately, they struggle to manage the situation due to the high cost of living in the city.
"They may get caught up in trying to provide better facilities without realising that the cost of living is increasing. Many fail to manage their finances properly from the beginning."