(Image: 123rf)
According to Youth and Sports Minister Hannah Yeoh, a total of 5,272 youths under the age of 34 have been declared bankrupt between 2020 and this year.
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,” Hannah said in reply to Senator Roderick Wong Siew at Dewan Negara today.
(Image: Malay Mail/Yusof Mat Isa)
Hannah highlighted that besides personal loans, youth bankruptcy is also driven by business loans (1,148 cases), housing loans (474), other debts (463), vehicle loans (444), corporate guarantees (383), income tax arrears (110), credit card debt (89), unpaid EPF contributions (77), student loans (9), and social guarantees (4).
To address this, the ministry, through the National Youth and Sports Department, will launch a nationwide Youth Financial Literacy programme from April to October, aiming to improve money management skills. Additionally, the Youth Economic Empowerment programme will help young people cope with rising living costs.
Hannah noted that the government, through Credit Counselling and Debt Management Agency (AKPK), has been running financial education programmes to promote responsible money habits and reduce youth bankruptcy risks.
(Source: The Star)
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