KUALA LUMPUR: Some 37,461 individuals were declared bankrupt between 2019 and 2023, the Dewan Rakyat was told.
Minister in the Prime Minister’s Department (Law and Institutional Reforms) Datuk Seri Azalina Othman Said said the 35-44 age group recorded the highest number of bankruptcy cases at 14,476.
This was followed by the 45-54 age group (10,052), 25-34 (6,874), 55 and above (5,811), those with no age information (126) and 25 and below (122), Azalina said, based on statistics from the Insolvency Department.
“Personal loans recorded the highest number of bankruptcy cases with 18,343 followed by business loans (6,563),” the Minister said in a written parliamentary reply on Thursday (Nov 27).
Other top reasons contributing to bankruptcy were vehicle purchase transactions (4,001), housing loans (3,099) and credit card debts (2,217).
There was also a 60% drop in the number of individuals declared bankrupt between 2019 (12,051) and 2023 (4,810).
She said the Second Chance Policy, which came into force on March 1 last year also saw 173,526 individuals discharged from bankruptcy.
The Second Chance Policy is a government initiative designed to protect the welfare of individuals burdened by small-scale debts, that provides a pathway out of bankruptcy under specific criteria.
“Apart from legal amendments, the Insolvency Department strengthened infromation delivery in bankruptcy through interviews, seminars, webinars, social media and insolvency clinics,” she said.
“This information, especially to the bankrupt, provides a guide for them to take the necessary steps to absolve this status,” she added.
Azalina was replying to a question by Salamiah Mohd Nor (PN-Temerloh) who asked about bankruptcy statistics between 2019 to 2023, its contributing factors and steps taken by the Insolvency Department to assist bankruptcy.
