KUALA LUMPUR, March 29 ― Selangor is the state with the highest number of bankrupt individuals, currently accounting for almost one-fifth of Malaysia's bankrupt cases, minister Datuk Seri Azalina Othman Said said today.
“Up until February 2017, the Malaysia Department of Insolvency is still administering as many as 292,086 bankruptcy cases that are active and have yet to be released from bankruptcy.
“Out of the total number of bankruptcy cases, Selangor recorded the highest number of bankruptcy cases in the country with 70,817 cases,” she said when tabling amendments to the Bankruptcy Act for second reading.
Noting that 58.57 per cent of bankruptcy cases in Malaysia involve those in the 25 to 44 age group, Azalina said these figures were worrying.
“Besides that, hire and purchase loans for vehicles and personal loans are among the main reasons for someone to be bankrupted in Malaysia,” the de facto law minister said.
Azalina also noted the government's concern over those who were declared bankrupt after acting as guarantor to borrowers who default on their loans.
“This group should not be held fully responsible without any actions being first taken on the principal borrowers to clear the loan taken,” he said.