Did you know that Malaysians becoming a bankrupt is not that uncommon yeah. In fact it’s like 16,000 on average every year. Read on for the article.
Earlier article here: 100k bankrupt Malaysians and 70k Malaysians have less than RM50k in EPF So, what happens if someone is declared a bankrupt? Is there a way out? In many developed countries, bankruptcy is not the end. Many could continue to make a comeback. this includes even the current American President Donald Trump who has declared business bankruptcies for six times. What about Malaysians? Earlier article here: Bankruptcy: Questions and Answers So are these bankrupt Malaysians?
Article in themalaysianreserve.com Minister in the Prime Minister’s Department (Law) Datuk Liew Vui Keong said that more than 80,000 bankruptcy cases were recorded by the Department of Insolvency Malaysia (DIM) in the last five years from January 2015 to August 2019.
Highest number of cases were by those between 35 and 44. (oops, my age is within this bracket!) Total number cases are 35% of total or 28,296 cases over the five-year period. This is then followed by the 25-34 age bracket with 20,461 cases (25.3%).
When it comes to gender, nearly 70% of the total were men with 56,173 cases. Women made up the remaining 30%. By race, Malays made up over half of the insolvents with 45,147 cases, followed by Chinese with 20,914 cases (26%), and Indians with 9,127 cases (11.3%). More details in the article here.
One major reason said to have causes these Malaysians becoming a bankrupt is due to excessive borrowings and uncontrolled credit card usage. Main causes for bankruptcies include personal loans, hire purchase, housing loans and credit card. Actually,if we look at the total loan amount the largest should be home loans. However, this is not the biggest cause of bankruptcies. This explains a lot yeah.
Plus we must not forget that there’s only one asset which could continue to increase in price as long as we continue to hold on to it. All the rest like personal loans, hire purchase and even credit cards will just drag us deeper and deeper into the debt hole. Choose wisely. A home is definitely something worth investing into. Happy saving via property investing yeah.
<Featured Image is courtesy of Stock Photos from Andrii Yalanskyi>
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