KUALA LUMPUR, Dec 13 ― The Insolvency Department revealed that Malaysians between the age of 25 and 44 form the bulk of those labelled bankrupt, making up six out of 10 among the 94,408 cases between 2013 and August this year.
The department’s director-general Datuk Abdul Rahman Putra Taha admitted there are many factors that contributed to the worrying trend, but he pointed to one in particular: the desire to start one’s “own life” by getting married, The Star reported today.
“When they start their own lives, they are not financially stable. Some want to get married, but if the in-laws ask for hantaran gifts such as cars or a house, they need the money.
“Their pay can be considered low but they need expensive gifts. Where else can they go other than applying for personal loans?” he was quoted saying.
In a 2013 report, seasoned wedding planners told Malay Mail Online that the cost of an average wedding, across all races, has soared to above RM50,000, causing some couples to take out personal loans to pay for their nuptials if they are unable to get much financial support from their parents.
Abdul Rahman did not elaborate further on the financial stress caused by lavish weddings, but listed out the top four reasons for bankruptcy cases ― car loans at 26.63 per cent, personal loans (25.48 per cent), housing loans (16.87 per cent), and business loans (10.24 per cent).
He also revealed that most of those declared bankrupt came from Selangor, followed by the Federal Territories, Johor, and Penang.
According to him, the government is planning to cut down the numbers of bankrupt declarations to between 4,000 and 5,000 per year.
Since 2013, there have been 1,356 bankruptcy cases cleared by the courts, while 11,627 more were terminated upon annulment of the bankruptcy order.
Meanwhile, 44,950 cases were discharged via Insolvency Certificate from the department’s director-general.
