KUALA LUMPUR – There has been a decline in the number of bankrupt Malaysian youths in the past three years, according to Deputy Youth and Sports Minister, Datuk Seri Ti Lian Ker.
During a recent Dewan Negara Q&A session, Ti responded to Senator Aziz Ariffin on the number of bankrupt Malaysian youths where he quoted data from the Malaysian Department of Insolvency (MDI), which reported that a total of 10,137 bankrupt youths since 2020 until June of this year.
Ti explained that 21 youths under the age of 25 that were facing bankruptcy in 2020 and the number declined to 20 in 2021, while 2022 had a further decline to six, as at June.
Additionally, cases of bankrupt Malaysian youths within the age group of 25 to 24 also declined from 1,741 in 2020 to 1,060 in 2021, and 425 this year.
For youths between ages 35 to 44, 2020 recorded 3,150 bankruptcy cases and it dipped to 2,535 and 1,179 in 2021 and 2022 respectively.
Ti explained that the major reason contributing to the number of bankrupt Malaysian youths was because of personal loans which makes up 3,165 of the total cases over three years. Over the past three years, 1,486 individuals reported personal loans as the cause of bankruptcy while 249 cited car instalments and 654 attributed it to business loans.
Furthermore, he added that 284 cases was due to housing loans, 140 cases caused by credit card debts, 84 cases of corporate guarantors, 83 cases of income tax debt, 65 cases of failure to pay EPF contributions, seven cases caused by scholarships or education loans, and another 113 cases reported other debts.
Therefore, according to Ti, the government has implemented a number of measures to reduce the rate of bankrupt Malaysian youths by increasing individual understanding of the risk or impact of a bankruptcy order via an educational and prudence-based learning approach.
“To help reduce the bankruptcy rate, MDI will continue to undertake many programmes with the community, such as the ‘Malaysian Department of Insolvency Prihatin’ programme,” he added.
With regards to the unemployment rate of youths, Ti stated that the rate for youths between ages 15 to 30 had declined by 0.3% from 501,200 in April 2022 to 475,700 in May of this year.
Furthermore, he added that from the data collected by the Department of Statistics, there were 533,800 unemployed youths from the same age range recorded in 2021.
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