Kuala Lumpur: A total of 5,272 youths below the age of 34 have been declared bankrupt from 2020 to this year, according to Youth and Sports Minister Hannah Yeoh. She revealed that of this total, 5,189 individuals were aged between 25 to 34, while 83 others were below 25.
According to BERNAMA News Agency, the trend of bankruptcy among youths has shown an increase, with 877 cases recorded in 2024, which is 150 cases higher than the 727 cases recorded in the previous year. The Insolvency Department’s records indicate that the primary cause of bankruptcy cases in 2024 was personal loans, which accounted for 2,776 cases or 46.4 percent of the total 5,977 bankruptcy cases.
The senator, Roderick Wong Siew, had inquired about the number of youths aged 35 and below declared bankrupt as of 2025 and the main causes behind the issue. In response, Hannah highlighted that other factors contributing to youth bankruptcy included business loans (1,148 cases), housing loans (474 cases), other forms of debt (463 cases), vehicle hire-purchase loans (444 cases), corporate guarantees (383 cases), income tax debt (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).
Hannah stated that the ministry, through the National Youth and Sports Department, has initiated a special nationwide Youth Financial Literacy programme, aimed at enhancing youth financial resilience, from April to October this year. Additionally, the ministry is organizing the Youth Economic Empowerment Programme, focusing on the cost of living elements for youth participants, particularly in the Central Zone.
Furthermore, Hannah mentioned that the government, through the Credit Counseling and Debt Management Agency (AKPK), has been and will continue to carry out various programmes to assist the target groups in becoming more financially savvy and practicing responsible financial management. These efforts are intended to reduce the risk of bankruptcy among Malaysians, especially the young people.