Bankruptcy among civil servants continues to rise, over 660 declared bankrupt


KUALA LUMPUR: The rise of bankruptcy among civil servants has persisted in 2024, with 666 declared bankrupt as of September this year, says Datuk Seri Azalina Othman Said.

The Minister in the Prime Minister’s Department (Law and Institutional Reform) said that this marks the second consecutive year of increased bankruptcy cases among civil servants since 2022.

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She added that cases fell in 2020 (1,009), followed by another drop in 2021 (678) and 2022 (621), but have been rising since 2023 (628), bringing the total number of cases to 3,602 over the past five years.

Addressing this growing trend, Azalina said resolving the issue depends on the cooperation of all ministry and department heads.

“Department chiefs in every ministry and department are responsible for monitoring and evaluating officers in serious debt, ensuring they continue making their debt payments regularly," said Azalina.

She added that the government is also committed to continuously monitoring the status of severe indebtedness among civil servants.

ALSO READ: 10-13% of new bankruptcy cases from 2021-2024 involve civil servants, says MDI DG

Azalina then said this is being done by providing preventive measures, education, and enforcement of financial management through the Organisation Anti-Corruption Plan (OACP).

“The Insolvency Department will continue its efforts to educate and raise awareness among civil servants about the risks and dangers associated with bankruptcy,” she said in a parliamentary written reply on Wednesday (Nov 6).

Azalina was responding to a question by Datuk Seri Richard Riot (GPS-Serian) regarding the government’s efforts to address the rising number of bankruptcy cases among civil servants.

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