A total of 5,272 youths under the age of 34 have been declared bankrupt between 2020 and this year, according to Youth and Sports Minister Hannah Yeoh. Of this total, 5,189 were aged between 25 and 34, while 83 were below the age of 25.

“The trend of bankruptcy among youths shows an increase, with 877 cases recorded in 2024, which is 150 cases higher than the 727 cases recorded in the previous year.

“According to the Insolvency Department’s records, the main cause of bankruptcy cases in 2024 was personal loans, which accounted for 2,776 cases or 46.4 per cent of the total 5,977 bankruptcy cases,” she said in reply to Senator Roderick Wong Siew during Question Time at the Dewan Negara sitting today.

Wong had asked for details on the number of bankruptcies among individuals aged 35 and below, as well as the key factors contributing to the issue.

Beyond personal loans, Yeoh said other significant contributors to youth bankruptcy included business loans, which were responsible for 1,148 cases, followed by housing loans (474 cases), other forms of debt (463 cases), vehicle hire-purchase loans (444 cases), corporate guarantees (383 cases), income tax arrears (110 cases), credit card debt (89 cases), failure to contribute to the Employees Provident Fund (77 cases), scholarships and student loans (nine cases), and social guarantees (four cases).

To tackle this growing issue, the ministry, through the National Youth and Sports Department, is set to introduce a nationwide Youth Financial Literacy programme from April to October this year. The initiative aims to strengthen financial resilience among young Malaysians by equipping them with better money management skills. In addition, the ministry will be launching the Youth Economic Empowerment programme, which will focus on addressing the rising cost of living for young people.

Yeoh emphasised that the government, through the Credit Counselling and Debt Management Agency (AKPK), has been actively running various programmes to help targeted groups become more financially literate and adopt responsible financial habits. These efforts, she said, are part of a broader strategy to reduce the risk of bankruptcy among Malaysians, particularly within the younger demographic.

(Source: The Star)

• TAGS:
• Bankruptcy
• Hannah Yeoh
• Youth Bankruptcy
• Youth Economic Empowerment Programme
• Youth Financial Literacy programme
• Youths