Addressing youth bankruptcy requires collaborative effort

WITH 877 cases reported in 2024 and over 5,000 since 2020, the rise in bankruptcy among Malaysian youths is an alarming issue. Inability to meet their financial obligations, including personal, business, housing or vehicle loans, and other types of debt, such as credit card liabilities and income tax debt, is the main contributor to this phenomenon.

One of the root causes of youth’s failure to meet their financial obligations is their lack of financial literacy. This gap in financial education often results in poor budgeting, excessive borrowing, and an inability to manage debt effectively.