We’ve all admired celebrities’ glamorous lifestyles, but behind the luxury, some are quietly battling bankruptcy.
In an unexpected revelation by the Insolvency Department (MDI), approximately 50 celebrities, including a well-known Datuk singer, are still grappling with bankruptcy despite their image as wealthy individuals.
Some of these figures have been unwilling to cooperate in paying the monthly contributions set by MDI after their bankruptcy cases were handled by the agency.
According to Berita Harian, MDI’s Director-General, Datuk M Bakri Abd Majid, highlighted the frustration faced by the agency as these celebrities refuse to meet with MDI officers to discuss their bankruptcy cases, even though bankruptcy notices have been issued.
Their failure to make the required monthly payments has made it difficult for MDI to help them emerge from their bankrupt status, as per the law.
“Some of these celebrities continue to flaunt their luxurious lifestyles on social media but fail to make the small payments set by MDI, despite the fact that these amounts are within their means,” said M Bakri.
In fact, some of them could have been released from bankruptcy, as their cases have been pending for over five years. But due to their lack of cooperation or refusal to meet with MDI officers, they remain bankrupt.”
Although the number of bankrupt celebrities in Malaysia is relatively small, their high profiles and large fanbases make them figures who should set a positive example for the public, M Bakri added.
Among those facing bankruptcy are two well-known rock singers who are still active in the music industry, as well as several popular actors.
In addition to celebrities, businessmen, corporate figures, and even politicians are also on the list of individuals who remain bankrupt due to various reasons, including failure to cooperate with MDI in managing their bankruptcy cases.
M Bakri emphasised that bankruptcy is not the end of the road.
By following MDI’s instructions, bankrupt individuals can have their cases managed efficiently and be released from bankruptcy within three to five years, provided they meet the necessary criteria.
“One of the key criteria for being released from bankruptcy is to be a ‘good bankrupt’—someone who pays their monthly contributions without fail and submits income and expense reports to MDI every six months,” M Bakri explained.
If someone under bankruptcy wants to travel abroad for official purposes or to perform religious duties, MDI is willing to consider their application, but unfortunately, some celebrities have abused this privilege.”
The issue is further complicated by reports that some of these bankrupt celebrities continue to earn substantial incomes from their careers, yet their earnings remain elusive to MDI.
M Bakri suspects that these funds are being funneled into accounts belonging to other individuals.
“One of the main reasons people are declared bankrupt is due to failed businesses, luxury property purchases, and acting as guarantors for others,” M Bakri said.
Bankrupt individuals are allowed to open only one bank account, so we suspect that some celebrities, who continue to earn large sums from their performances and concerts, may be diverting their payments to other accounts, such as those belonging to family members.”
However, M Bakri warned that if MDI uncovers cases of hidden income, stern action will be taken against those involved in concealing their earnings.
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