An average of 18 people go bankrupt every day in our country!
According to the data from the Malaysian Bankruptcy Bureau, the number of bankruptcy in our country in the first 5 months of this year is 2,694, that is, an average of 18 people per day. The total cumulative number of bankruptcy in our country is now 274,628.
Sixty percent of the bankrupts are young people between the ages of 25 and 44, and there are more than 200 bankrupts under the age of 25. More than half of these bankruptcies were caused by personal loans. Other bankruptcy factors are auto loans, business loans and delinquent credit cards.
The government amended the bankruptcy act from September 20, 2020, which means that the bankruptcy threshold was raised to RM100,000 from the previous RM50,000. This means that only those who cannot afford to pay more than RM100,000 in debt will be declared bankrupt.
The government has raised the bankruptcy threshold, which has seen a downward trend in bankruptcy in the country, with about 16,000 bankruptcy cases per year back in 2018, compared to only about 6,500 last year.
Selangor is the state with the most bankrupts, or a total of 72,608, followed by the Federal Territory with 46,876 and Johor with 32,441.
