Latest news with #InsolvencyDepartment
New Straits Times
6 days ago
- Business
- New Straits Times
More than 4,000 civil servants declared bankrupt since 2020
KUALA LUMPUR: Insolvency Department statistics show that 4,194 civil servants have been declared bankrupt from 2020 until June this year, the Dewan Rakyat heard was told. Deputy Finance Minister Lim Hui Ying said this figure represents 0.3 per cent of the country's 1.6 million civil servants. She said the main causes of financial difficulties were high debt commitments and the rising cost of living. However, she said the government would continue to monitor the situation to ensure civil servants manage their finances prudently. "For civil servants, we frequently engage and negotiate with the Credit Counselling and Debt Management Agency (AKPK) if they are facing financial issues. "At the same time, for banks, we have the debt service ratio. We monitor this closely — the median is currently 34 per cent, but for us, it is at 41 per cent. "With the cost of living having increased, civil servants are indeed facing problems. "Through the Public Service Remuneration Scheme (SSPA), we have also raised salaries for civil servants, while the government has allocated RM100 for the Payung Rahmah programme, which will directly help civil servants cope with the rising cost of living," she said. Lim said this during the question and answer session, in response to a question from Abdul Latiff Abdul Rahman (PN-Kuala Krai). Latiff had asked about the government's measures to address the worrying trend of rising household debt, particularly among civil servants, and the relevance of financial institutions approving loans of up to RM400,000 for middle-income earners, as well as control measures to ensure household financial stability. Lim said the country's household debt level remained manageable, with the total reaching RM1.65 trillion, or 84.3 per cent of the Gross Domestic Product (GDP), as of March 2025. "This shows little change compared to the end of 2024. Household debt levels should also be viewed holistically, particularly by considering household financial assets, which are much larger, totalling RM3.45 trillion during the same period. "Overall, household financial assets remain 2.1 times higher than debt, providing a strong financial buffer. The government has implemented various control measures to manage household debt and strengthen household resilience. "A total of 61.1 per cent of household debt comprises housing loans," she said.
The Star
6 days ago
- Business
- The Star
4,194 civil servant bankruptcies recorded from 2020 to June 2025
KUALA LUMPUR: The Insolvency Department recorded 4,194 bankruptcy cases involving civil servants between 2020 and June 2025, about 0.3% of the nation's 1.6mil public sector workforce. Deputy Finance Minister Lim Hui Ying said the Credit Counselling and Debt Management Agency (AKPK) offers advisory services, financial management assistance and debt restructuring programmes for individuals facing serious financial difficulties. "For new officers, the Public Service Department conducts the Mind Transformation Programme, which provides early exposure to personal financial management to ensure they can manage debt prudently. "Civil servants are also bound by a rule requiring their net monthly salary to remain at least 40% of their gross income, to prevent them from falling into serious debt,' she said. She was responding to a question from Abdul Latiff Abdul Rahman (PN-Kuala Krai) on government measures to address the worrying trend of rising household debt, particularly among civil servants. As of March 2025, she said, Malaysia's household debt stood at RM1.65 trillion, or 84.3% of the GDP (Gross Domestic Product). "However, it remains manageable at the macro level, as household financial assets over the same period amounted to RM3.45 trillion, 2.1 times higher than total debt,' she added. On housing, the largest component of household debt, Lim said the government has introduced various affordable housing schemes, including Residensi Madani and PR1MA, taking into account specific situations such as in Johor Bahru, where the cost of living is high. — Bernama
New Straits Times
03-08-2025
- Business
- New Straits Times
Celebrities hiding income risk legal action, says Insolvency Dept chief
KUALA LUMPUR: The Insolvency Department is monitoring popular celebrities declared bankrupt who are suspected of hiding high incomes from their artistic work by channelling payments into the bank accounts of others, including employees or family members. Director-General of Insolvency Department Datuk Ishak Bakri said investigations include companies hiring the bankrupt artists to trace where payments were directed. These individuals are required to report their income every six months under Subsection 38(1)(b) of the Insolvency Act 1967 [Act 360]. "We know many popular bankrupt artists still earn good income but hide it from us. Payments are made into the accounts of family members, managers or employees," he said. He added that failure to declare income not only hampers their chances of being discharged from bankruptcy but also violates the law and may result in court action. Section 38 of the Insolvency Act requires bankrupts to submit their income and expenditure statements every six months and surrender any surplus funds to the department. Ishak said some celebrities ignore this duty and fail to make the required monthly contributions despite earning from their work. The department may call companies involved to provide information for auditing purposes. President of the Malaysian Artistes Association (Seniman), Zed Zaidi, urged celebrities to take responsibility and set a good example by resolving their bankruptcy issues. Ishak said the department is open to discussions with bankrupt individuals, including celebrities, who want to resolve their cases. However, many avoid contact out of shame or fear, making it harder to help them. "There's no point flaunting a lavish lifestyle on social media as if nothing is wrong, yet failing to make small monthly payments based on their means," he said.
Borneo Post
18-07-2025
- Business
- Borneo Post
Tiang: Jln Deshon sick housing project set to be declared abandoned next month
A view of the long-delayed housing project. – Photo by Peter Boon SIBU (July 18): The long-overdue housing development project along Jalan Deshon here is expected to be declared an abandoned project by next month, said State Deputy Minister of Public Health, Housing and Local Government, Datuk Michael Tiang. Speaking to reporters during a site visit today, he said the project, which commenced in 2012 and was initially slated for completion in 2015, remains only 70 per cent completed after over a decade. 'Due to the delay, many buyers have started filing lawsuits against the developer. In 2022, the company was wound up by the Sibu High Court and placed under the receivership of the Insolvency Department,' he said. Tiang explained that once the project is gazetted as abandoned under the Housing Development Control Licencing Ordinance 2013, affected buyers would be able to approach their respective banks to apply for interest exemptions. 'This will ease their financial burden, as they will no longer have to service the interest. That is one form of relief we can provide at this stage,' he said. The Pelawan assemblyman also revealed that discussions are underway with landowners on the next course of action for the stalled development. 'As for the way forward — how to turn the project around — that will be the next step. 'Across Sarawak, we have identified several other similar projects and will gradually visit and assess them for possible declaration as abandoned projects. This is what we mean when developers are no longer in a position to continue their projects,' he added. Tiang disclosed that the housing development project along Jalan Deshon here will be the first of the sick projects to be declared as abandoned under his tenure as Deputy Minister of Public Health, Housing and Local Government. The project comprised 80 units of townhouses and 10 units of two-and-a-half storey semi-detached houses, affecting 44 house purchasers. Earlier, Tiang also visited another sick project at Lorong Salim 28, noting that it was delayed for two years due to the Covid-19 pandemic. During the inspection, he expressed satisfaction with the progress and quality of the project. 'There are 47 units in Phase 1 and 2. According to the developer, Phase 1 involving 21 units is scheduled to complete by next month, while Phase 2 involving 26 units is expected for completion by year end,' he said. He added that after the completion of the project, Sibu Municipal Council (SMC) will assist with the occupational permit (OP) for residents to move in. Furthermore, Tiang also inspected the project at Taman Muhibbah, with 35 units of single-storey terrace houses and 12 single-storey semi-detached houses. abandoned Jalan Deshon Michaeel Tiang sick housing project
The Star
13-07-2025
- Business
- The Star
200,000 to be freed from bankruptcy, says Azalina
SHAH ALAM: The government is targeting 200,000 individuals for discharge from bankruptcy by the year-end. Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said (pic), who disclosed this, said about 186,000 have been discharged so far. She said the data was obtained by the Insolvency Department for the government to lend a helping hand to the affected group. 'We hope by the end of the year, we can tabulate (people released from bankruptcy status). In total, we hope to hit 200,000 this year,' she said after launching a Financial Literacy Programme for public and private higher education institution students organised by the department here yesterday, Bernama reported. In tabling Budget 2025, Prime Minister Datuk Seri Anwar Ibrahim announced that the Second Chance Policy would be expanded to benefit those aged 40 and below who have debts not exceeding RM200,000 starting last year. Azalina said a total of 25,578 bankruptcy cases were recorded from 2021 to May 2025, with 10,145 cases involving the 35 to 44 age group. She said men recorded higher bankruptcy cases than women, at 18,590 over that period. On the programme, Azalina said it was among the proactive steps taken by the government to update the people with financial management and literacy, especially students about to begin their careers. About 1,000 students from public and private universities and colleges were involved in the day-long programme.
