27th June 2022 - 2 min read
Prime Minister Datuk Seri Ismail Sabri Yaakob has commented that the growing number of bankrupts among Malaysian youths is a major cause for concern for the nation.
“I am concerned when looking at the latest statistics on bankruptcy among youths, and I am also concerned that the numbers will rise further,” said Datuk Seri Ismail Sabri, referring to a recent report by the Malaysian Department of Insolvency (MDI). According to the report, almost 60% of the 46,132 Malaysians who have been declared bankrupt from 2018 to May this year are between 25 and 44 years old.
In light of the situation, the prime minister said that he will discuss measures to address the issue with Bank Negara Malaysia governor, Tan Sri Nor Shamsiah Mohd Yunus. He will also hold discussions with the Minister in the Prime Minister’s Department (Parliament and Law), Datuk Seri Dr Wan Junaidi Tuanku Jaafar to review the relevant legislation.
Datuk Seri Ismail Sabri further stated that the government may also reintroduce its previous approach of increasing the bankruptcy threshold to assist with the matter. For context, the MDI had previously raised the bankruptcy threshold in 2020, from RM50,000 to RM100,000, to help the people cope with financial difficulties during the Covid-19 pandemic.
Aside from voicing his concerns regarding youth bankruptcies, the prime minister also noted that Malaysia’s unemployment rate has decreased following the country’s transition to the endemic phase since 1 April 2022. As indicated by the latest labour report by the Department of Statistics Malaysia (DOSM), the country’s unemployment rate has declined to 3.9% in April 2022.
“This is the first time the unemployment rate has dropped below 4% since the Covid-19 pandemic, with the number of unemployed remaining on a downward trend for nine consecutive months,” the prime minister remarked.
(Source: The Edge Markets)
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world