Financial struggles among Malaysian youths are on the rise, with 5,272 individuals aged 34 and below declared bankrupt between 2020 and 2025, according to data from the Malaysian Department of Insolvency.
Photo via The Borneo Post
Speaking to a local news channel, Minister of Youth and Sports, Hannah Yeoh, revealed that out of this number, 5,189 were between the ages of 25 and 34, while 83 were under 25, "The trend of youth bankruptcy is increasing, with 877 cases recorded in 2024—an alarming rise of 150 cases compared to 727 in the previous year.
"Based on records from the Malaysian Department of Insolvency, the primary cause of bankruptcy in 2024 was personal loans, accounting for 2,776 cases or 46.4% of the total 5,977 bankruptcy cases—nearly half," she explained.
Hannah shared these figures in response to a question from Senator Roderick Wong Siew Lead in the Dewan Negara.
She further elaborated that other contributing factors include business loans (1,148 cases), housing loans (474 cases), miscellaneous debts (463 cases), vehicle hire purchase loans (444 cases), and corporate guarantors (383 cases).
Photo via Malay Mail
To address this issue, the Ministry of Youth and Sports (KBS), through the National Youth and Sports Department, will introduce the Youth Financial Literacy Course from April to October this year, targeting 30,600 participants by 2030, "For 2025, KBS will also implement the Genta Pemerkasaan Ekonomi Belia programme, particularly in the central region, focusing on cost-of-living issues faced by young people.
"In addition, the Malaysian Department of Insolvency has been and will continue to conduct various awareness programmes on bankruptcy, including community outreach initiatives, insolvency roadshows, financial literacy workshops, and discussions on the impact of bankruptcy, reaching agencies, private sectors, students, and local communities," she added.
The Credit Counselling and Debt Management Agency (AKPK) is also running various programmes to help targeted groups manage their finances more effectively.
The government hopes these measures will foster a financially responsible society and reduce the risk of bankruptcy, particularly among young Malaysians.
