Over 31,500 Malaysians declared bankrupt since 2021, with 46% of cases linked to personal loans, as government expands debt relief measures.
JOHOR BAHRU: More than 31,500 individuals were declared bankrupt in Malaysia between 2021 and March this year. Official data reveals nearly half of these cases were due to personal loans.
Economy Minister Akmal Nasrullah Mohd Nasir said 14,582 cases, or 46%, stemmed from personal debt pressures. He highlighted that 4,704 cases involved individuals aged 34 and below.
“The data underscores the importance of financial literacy from an early stage,” he said. Akmal Nasrullah stressed the need for young families to plan commitments within their means.
He was speaking at a press conference for the Second Chance Policy Programme in Johor Bahru. The programme is organised by the Insolvency Department.
The minister said the government is focusing relief efforts on four target groups. These are single parents, micro-business operators, scam victims, and buyers of abandoned housing projects.
“This policy allows affected individuals to restart their lives and reorganise their finances,” he explained. He noted some become bankrupt due to misfortunes like incomplete home purchases.
The government has also enhanced the bankruptcy discharge criteria. The debt threshold for discharge has been raised from RM50,000 to RM200,000.
Meanwhile, Akmal Nasrullah provided an update on the country’s inflation rate. Inflation for the first quarter of 2026 stood at 1.6%.
He added that inflation saw a slight increase to 1.7% in March. This was mainly driven by costs in the transport and fuel sectors.
