Bankruptcy Numbers Increasing In Youth, Government Asked To Intervene

Tags: bankruptcy, debt, Hannah Yeoh, Loan, personal loan. credit card, Youth, Youth And Sports Ministry

A non-governmental association (NGO) has claimed that the number of bankruptcy cases among Malaysian youths is on the increase, and it needs government intervention.

According to the Malaysian Consumer and Borrower Settlement Association (4PM), an NGO that focuses on banking, credit, and civil problems among Malaysians, they receive calls from bankrupt youths 15 times a day, which highlights the critical situation of Malaysian youths.

4PM’s statistics from 2019 to August 2024 show that the highest number of bankrupt individuals are between the ages of 35 and 44 years, with a total of 13,757 people, followed by 5,549 people in the 55 and above category.

In a report from Malay Mail, 4PM’s president was quoted as saying that the government needs to take immediate action to ensure that the youths will not fall victim to bankruptcy issues, which can affect their future.

“The government should give or make it easier for borrowers, especially the youth group, by instructing the banks not to be too strict with this group.

“We are willing to act as a mediator between the community and the bank. But the government needs to instruct the banks to cooperate,” 4PM president Rosland Mohd Arif was quoted saying.

Rosland also stated that unlike popular belief that most youths fall bankrupt due to their luxurious lifestyle, most of them are actually in their precarious situation due to increasing commitments.

“I interviewed every one of the bankrupt youths; one of the factors is that they are unable to pay their commitments. That is due to the increase in loan payments, for example, the house loan they used to only pay RM800 but now it has increased to RM1,200, and the salary remains the same.

“This has not been mixed with other monthly commitments such as cars, eating and drinking and so on,” he was reported saying.

Earlier this year, the Youth and Sports Minister Hannah Yeoh has also revealed that bankruptcy is the most serious problem affecting the Malaysian youths today.