JOHOR BARU: A growing number of young Malaysians are falling into bankruptcy, with 4,704 cases involving individuals aged 34 and below recorded over the past five years, says Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir (pic).
He said the figure accounts for 15% of the 31,517 bankruptcy cases recorded between 2021 and March 2026, raising concerns that many youths are being burdened by debt before they can achieve financial stability.
“Nearly half of all bankruptcy cases are caused by personal loans, underscoring the urgent need to strengthen financial literacy among Malaysians,” he said.
Speaking at the launch of the Second Chance Fast Track Policy Programme 2026, organised by the Johor Insolvency Department yesterday, Akmal Nasrullah said the government is taking proactive steps to help affected individuals rebuild their lives.
“The government must not only manage failure but also help people break out of cycles of financial hardship and rebuild with dignity.
“The Second Chance Policy provides a structured pathway for bankrupt individuals to restart their lives, particularly through a fast-track mechanism that accelerates the discharge process for eligible cases.
“Among those prioritised under the initiative are single parents, micro-entrepreneurs, scam victims and buyers affected by abandoned housing projects,” he said.
Akmal Nasrullah added that the policy was expanded under Budget 2024 to include individuals aged 40 and below with debts not exceeding RM200,000, noting that nearly 14,000 bankruptcy cases involving debts below RM50,000 had been discharged as of July 2023.
He said the initiative aligns with the 13th Malaysia Plan, which emphasises social mobility through reforms in education, labour markets and inclusive economic development.
Akmal Nasrullah noted that Malaysia’s household debt-to-GDP ratio stood at 84.8% at the end of 2025, highlighting the importance of responsible borrowing and sound financial management.
On the economic outlook, he said Malaysia’s economy grew 5.2% in 2025, with growth projected at between 4% and 5% in 2026.
Early estimates also indicate a 5.3% expansion in the first quarter of this year, reflecting continued resilience despite global uncertainties.
He added that Johor stands to benefit from the Johor-Singapore Special Economic Zone, which is expected to create 20,000 high-skilled jobs, offering renewed opportunities for those seeking a fresh start.
On inflation, he said the rate rose from 1.44% in February 2026 to 1.70% in March 2026, partly due to fuel-related pressures.
The increase, he said, reflects the broader impact of fuel cost fluctuations on the cost of living, which continues to strain households and calls into question prudent financial management.
