Financial struggles among young Malaysians are becoming a growing concern, with thousands facing bankruptcy due to mounting debts.
Recently, the Ministry of Youth and Sports revealed that 5,272 Malaysians aged 34 and below were declared bankrupt between 2020 and 2025, according to data from the Malaysian Department of Insolvency.
According to Buletin TV3, Youth and Sports Minister Hannah Yeoh stated that the majority—5,189 individuals—were between 25 and 34 years old, while 83 were under 25.
The number of bankruptcy cases among youths increased in 2024, with 877 cases recorded, a rise of 150 cases compared to 727 in the previous year.
Yeoh further disclosed that personal loans were the primary cause of youth bankruptcies, making up 2,776 cases or 46.4% of the total 5,977 bankruptcy cases in 2024.
Other significant causes included business loans (1,148 cases), housing loans (474 cases), and miscellaneous debts (463 cases), along with vehicle hire purchase (444 cases) and corporate guarantor responsibilities (383 cases).
Government initiatives to curb youth bankruptcy
In response to this worrying trend, the Ministry of Youth and Sports, through the National Youth and Sports Department, will launch the Youth Financial Literacy Course from April to October this year across the country.
The programme aims to educate young Malaysians on better financial management, with a target of 30,600 participants by 2030.
Additionally, in 2025, the ministry will introduce the Genta Youth Economic Empowerment programme, focusing on cost-of-living challenges, particularly in the central region.
Meanwhile, the Malaysian Department of Insolvency will continue running public awareness campaigns, financial literacy programmes, outreach initiatives, and insolvency roadshows to highlight the impact of bankruptcy.
Financial education as the key to prevention
The Credit Counselling and Debt Management Agency (AKPK) is also playing a role in equipping individuals with financial knowledge to manage their money wisely.
With these measures in place, the government hopes to cultivate a financially responsible society and reduce the risk of bankruptcy, particularly among young Malaysians.
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