Over 107,000 individuals declared bankrupt from 2010 to April 2015

More than 107,000 people have been declared bankrupt in the country from 2010 until April this year, the Dewan Negara was told Thursday.

Deputy Finance Minister Datuk Ahmad Maslan said of the total, 37,888 individuals were aged between 35 to 44.

"Meanwhile, those aged between 45 to 54 years were 29,952 people, 25 to 34 years (23,484), 55 and above (13,490), while under 25 years, 1,469 people," he said in reply to a supplementary question from Senator Datuk Megat Zulkarnain Omardin who wanted to know the number of individuals declared bankrupt during that period.

Ahmad said among the main causes that led to bankruptcy were failing to pay for vehicle hire purchases, housing loans, personal and credit card loans, business loans, as well as those who became guarantors.

He said to curb the level of indebtedness among young people and to avoid bankruptcy, the government had taken initiatives to provide comprehensive financial education in schools and institutions of higher learning.

Ahmad said Bank Negara Malaysia (BNM) had collaborated with the Education Ministry to integrate financial education into core subjects for the new school curriculum.

The provision of financial education in higher education institutions (IPTs) were also implemented in cooperation with the Credit Counselling and Debt Management Agency (AKPK) in 52 IPTs and 30 polytechnics in the country, he said.

Ahmad said BNM also requires financial institutions to provide responsible financing in accordance with the ability of the borrower to repay loans.

Besides that, BNM has also issued guidelines for credit cards to ensure consumers used them in careful and prudent manner.

"For individuals facing financial problems and difficulty in repaying loans, they may also discuss with their respective financial institutions or contact AKPK for advice," Ahmad said.