KUALA LUMPUR: A total of 5,272 youths below age 34 have been declared bankrupt from 2020 to this year, Youth and Sports Minister Hannah Yeoh says.
She said that of the total, 5,189 were between 25 and 34, while 83 others were below age 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.
"Insolvency Department records show that the main cause of bankruptcy cases in 2024 was personal loans, which accounted for 2,776 cases or 46.4% of the total 5,977 bankruptcy cases," she said in reply to Senator Roderick Wong Siew during Question Time at the Dewan Negara sitting on Thursday (March 13).
The senator wanted to know the number of youths aged 35 and below declared bankrupt as of 2025 and the main causes behind the issue.
Hannah said that factors contributing to youth bankruptcy include 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).
She said that the ministry, through the National Youth and Sports Department, will carry out a special nationwide Youth Financial Literacy programme, which aims to enhance youth financial resilience, from April to October this year.
"For this year too, the ministry is also organising the Youth Economic Empowerment Programme, focusing on the cost of living elements for youth participants," she said.
Additionally, Hannah said the government, through the Credit Counseling and Debt Management Agency (AKPK), has and will continue to carry out various programmes to assist the target groups in becoming more financially savvy and practicing responsible financial management.
All these efforts are aimed at reducing the risk of bankruptcy among Malaysians, especially young people, she added. - Bernama
