More men declared bankrupt than women over past 5 years, says minister

More men have been declared bankrupt than women over the past five years, at 35,856 versus 13,254, says Minister in the Prime Minister's Department Azalina Othman Said. 

In an oral response at the Dewan Rakyat today, she said the data, collected by the insolvency department from 2018 to 2022, was worrying as those declared bankrupt would need government assistance to begin afresh. 

She said the women and family development ministry would need to look for ways to tackle the situation as soon as possible. 

The insolvency department said at the beginning of February that personal and business loan debts were the main factors for bankruptcy in the country. 

It estimated a total of 49,133 bankruptcy cases reported since 2018, of which 42.24% or 20,754 were due to personal loan debts. 

Last year, a total of 5,695 bankruptcy cases were administered by the department, a slight decrease from the 6,554 cases recorded in 2021.

In 2021, the department processed 8,351 cases. It processed 12,051 cases in 2019 and 16,482 in 2018.  

The highest frequency of bankruptcy cases came from the 35 to 44 age bracket (37.5% or 18,454 individuals) followed by the 45-54 age bracket (25.95% or 12,752 individuals) and 25-34 age group (20.97% or 10,302 individuals).

Kota Bharu MP Takiyuddin Hassan meanwhile questioned the department's strategy for handling the issue, saying it was overly harsh against those who fail to pay off their debts, especially the youth. 
 
"Those who commit corruption on a grand scale are imprisoned for 10 years or more, and then released," he said. 

"But those who take small loans of tens or hundreds of thousands are declared bankrupt for life. 

"According to the records, 270,300 were declared bankrupt as of 2020 – about 1,000 people a month when the OPR was raised." 

Azalina acknowledged that there were those who became bankrupt as victims of circumstance. 

She said such individuals were unable to pay their credit card bills, vehicle loans and personal loans.

She added that the insolvency department was looking for ways to grant automatic relief to such people under more compassionate circumstances. 

"For example, those aged 70 and above who have health problems or who are physically challenged," she said. 

"They need to be considered for automatic relief, such as is granted in other countries." 

She said the matter was however complicated as creditors such as banks could still object to the process of releasing those who are declared bankrupt. 

"That's why the insolvency department is looking at a more automated way to release them, in line with the changing times," she said. 

From 2018 to 2022, she said, a total of 87,427 individuals had been released from their bankruptcy status by way of a release certificate from the director-general of insolvency.