Alarming rate of bankruptcies among young, naive and spendthrift Malaysians
Limited financial planning and poor business acumen are the main causes of the trend. The highest number of bankruptcies (13,098) among young people occurred in 2014. As of April 2018, another 4,240 young been declared bankrupt.
Kuala Lumpur (AsiaNews/Agencies) – Some 64,632 Malaysians aged between 18 to 44 have been declared bankrupt over the last five years. They represent almost 60 per cent of all cases, the Insolvency Department (ID) reported.
The main causes of this worrying trend are poor financial planning and the lack of business acumen.
Based on ID data, Minister Liew Vui Keong said that the highest number of bankruptcies among young people, 13,098, occurred in 2014.
"In 2015, a total of 11,277 were declared bankrupt, increasing slightly to 11,875 in 2016. However, we can see a decline from a total of 11,106 people declared bankrupt recorded in 2017 to 4,240 cases until April this year," he said.
ID Director General Datuk Abdul Rahman Putra Taha said that four main causes are behind the trend: car loans (26.63 per cent), personal loans (25.48 per cent), housing loans (16.87 per cent), and business loans (10.24 per cent).
"We need to find a solution," said Youth and Sports Minister Syed Saddiq bin Syed Abdul Rahman.
The 25-year-old wants the government “to provide special funds for young entrepreneurs,” but at the same time, “we want the young people not to fall victim to a lavish lifestyle”.
Urging young people to adopt a culture of saving, he announced government programmes dedicated to financial education.
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