A TOTAL of 5,272 youths under the age of 34 have been declared bankrupt between 2020 and the present, revealed Youth and Sports Minister, Hannah Yeoh.
Of this total, 5,189 individuals were aged between 25 and 34, while 83 others were under 25. The increasing trend of youth bankruptcies is concerning, with 877 cases recorded in 2024 alone, a significant rise from 727 cases in the previous year.
In response to a question raised by Senator Roderick Wong Siew during Question Time at the Dewan Negara today, Yeoh explained that personal loans were the leading cause of bankruptcy among the youth.
“According to records from the Insolvency Department, personal loans accounted for 2,776 cases, representing 46.4% of the 5,977 total bankruptcy cases in 2024.”
The minister explained additional contributing factors to youth bankruptcies include business loans (1,148 cases), housing loans (474 cases), other forms of debt (463 cases), and vehicle hire-purchase loans (444 cases).
Other causes include corporate guarantees (383 cases), income tax debts (110 cases), credit card debts (89 cases), failure to contribute to the Employees Provident Fund (77 cases), scholarships and student loans (nine cases), and social guarantees (four cases).
Addressing these alarming statistics, Hannah Yeoh highlighted that the ministry, through the National Youth and Sports Department, will be organising a nationwide Youth Financial Literacy programme from April to October 2025.
The programme aims to enhance financial resilience among young people.
Moreover, the ministry is also rolling out the Youth Economic Empowerment Programme, which will focus on alleviating the cost-of-living challenges for youth participants, particularly in the Central Zone of Malaysia.
“The government, through the Credit Counseling and Debt Management Agency (AKPK), will continue to carry out various initiatives aimed at helping young people develop better financial management skills, ultimately reducing the risk of bankruptcy,” Yeoh said.
These efforts are part of a broader initiative to ensure that Malaysian youth are equipped with the necessary financial knowledge to avoid falling into debt traps and to manage their finances responsibly. – March 13, 2025
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