A total of 22,581 bankruptcy cases were recorded between 2012 and September this year involving individuals aged between 25 and 34, revealed the Insolvency Department.
In the same period, 1,157 bankruptcy cases involving those under 25 years old were also recorded, it added.
According to Minister in the Prime Minister’s Department Datuk Seri Azalina Othman Said, the highest number of bankruptcies, at 26,801 cases, was due to the inability to settle vehicle hire-purchase loans, following by personal loans (22,153 cases) and housing loans (18,819 cases).
This confirms the findings of a survey by The Edge and iMoney which said millennials were having a tough time surviving financially, with many being knee-deep in debt and on the brink of bankruptcy.
Last week, the government proposed an “escape clause” to help Malaysians straddled with debt to avoid being declared bankrupt.
The proposal comes amid rising household debt with Bank Negara Malaysia revealing that the country’s household debt stood at RM1.03 trillion or 89.1% of the GDP, making it one of the highest in the region.
