Latest news with #MalaysianInsolvencyDepartment
BusinessToday
4 days ago
- Business
- BusinessToday
Household Debt Remains Controlled Amid Government Measures
The government confirmed that household debt remains at a manageable level despite concerns over rising debt, particularly among civil servants, according to Deputy Finance Minister Lim Hui Ying during the parliamentary session on August 13 2025. As of March 2025, total household debt stood at RM1.65 trillion, equivalent to 84.3% of Malaysia's gross domestic product (GDP), showing little change from the end of 2024. The government emphasised that household financial health must be viewed holistically, noting that household financial assets amounted to RM3.45 trillion during the same period, 2.1 times the debt level, providing a strong financial buffer. Measures to control household debt include the Policy Document on Responsible Financing issued by Bank Negara Malaysia since 2012. This framework regulates loan approvals, including those to civil servants, ensuring borrowers' repayment capacity is assessed based on disposable income and debt service ratio (DSR) limits. Data from late 2024 indicated the median DSR of aggregate household loans remained prudent at 34%. Specifically for civil servants, Regulation 13 under the Public Officers (Conduct and Discipline) Regulations 1993 prohibits officers from falling into serious financial indebtedness and mandates that their net monthly salary must not fall below 40% after deductions. Bankruptcy data from the Malaysian Insolvency Department recorded 4,194 cases involving civil servants from 2020 to June 2025, representing only 0.3% of the 1.6 million public sector employees. Support services through the Credit Counselling and Debt Management Agency (AKPK), under Bank Negara Malaysia, provide financial advice and loan restructuring programmes to individuals in need. The Public Service Department (JPA) also implements strategic initiatives such as the Mind Transformation Programme (PTM) to educate new officers on personal financial management. This statement addresses a question raised by Kuala Krai MP Abdul Latiff. The MP asked the Ministry of Finance to clarify the government's measures to address the concerning trend of rising household debt, especially among civil servants. He also inquired about the justification for financial institutions approving loans of up to RM400,000 for middle-income earners and the control measures implemented to ensure household financial stability. The government reiterated its commitment to maintaining household financial stability through regulatory oversight and targeted support measures.
Sinar Daily
23-06-2025
- Business
- Sinar Daily
Govt targets 200,000 individuals to be discharged from bankruptcy this year
So far, approximately 186,000 individuals have been successfully released from the problem. 23 Jun 2025 03:21pm Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said - Photo by Bernama SHAH ALAM - The government is targeting 200,000 individuals to be discharged from bankruptcy by the end of this year. Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said that so far, approximately 186,000 individuals have been successfully released from the problem. She said the record was obtained by the Malaysian Insolvency Department following the government's efforts in giving a second chance to the affected group to continue their lives. "We hope by the end of the year, we can give a calculation (people released from bankruptcy status). So in total we hope to target 200,000 this year," she said. Photo for illustration purposes only. She told reporters after the launch of the Financial Literacy Programme for Public Higher Education Institutions (IPTA) and Private Higher Education Institutions (IPTS) in 2025 by Malaysian Insolvency Department at Universiti Teknologi Mara (UiTM) Shah Alam today. Also present was UiTM vice-chancellor Prof Datuk Dr Shahrin Sahib @ Shabuddin. When tabling Budget 2025, Prime Minister Datuk Seri Anwar said the Second Chance Policy would be expanded to young people aged 40 and below who have debts not exceeding RM200,000 starting last year. Meanwhile, Azalina said a total of 25,578 bankruptcy cases were recorded from 2021 to May 2025 from the age of under 25 to 55 and above. Of that total, she said, 10,145 bankruptcy cases were recorded involving the 35 to 44 age group. She said that by gender, men recorded higher bankruptcy cases than women, at 18,590 during the same period. Meanwhile, Azalina said the programme organised today was one of the proactive steps taken by the Madani government in bringing laws and knowledge related to financial management and literacy to the people, especially students of higher learning institutions who are about to enter the working world. About 1,000 students from public and private universities and colleges were involved in the one-day programme. - BERNAMA Malaysian Insolvency Department
The Sun
23-06-2025
- Business
- The Sun
Malaysia aims to discharge 200,000 bankruptcies by 2025
SHAH ALAM: The government is targeting 200,000 individuals to be discharged from bankruptcy by the end of this year. Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said that so far, approximately 186,000 individuals have been successfully released from the problem. She said the record was obtained by the Malaysian Insolvency Department following the government's efforts in giving a second chance to the affected group to continue their lives. 'We hope by the end of the year, we can give a calculation (people released from bankruptcy status). So in total we hope to target 200,000 this year,' she said. She told reporters after the launch of the Financial Literacy Programme for Public Higher Education Institutions (IPTA) and Private Higher Education Institutions (IPTS) in 2025 by Malaysian Insolvency Department at Universiti Teknologi Mara (UiTM) Shah Alam today. Also present was UiTM vice-chancellor Prof Datuk Dr Shahrin Sahib @ Shabuddin. When tabling Budget 2025, Prime Minister Datuk Seri Anwar said the Second Chance Policy would be expanded to young people aged 40 and below who have debts not exceeding RM200,000 starting last year. Meanwhile, Azalina said a total of 25,578 bankruptcy cases were recorded from 2021 to May 2025 from the age of under 25 to 55 and above. Of that total, she said, 10,145 bankruptcy cases were recorded involving the 35 to 44 age group. She said that by gender, men recorded higher bankruptcy cases than women, at 18,590 during the same period. Meanwhile, Azalina said the programme organised today was one of the proactive steps taken by the MADANI government in bringing laws and knowledge related to financial management and literacy to the people, especially students of higher learning institutions who are about to enter the working world. About 1,000 students from public and private universities and colleges were involved in the one-day programme.
Barnama
23-06-2025
- Business
- Barnama
Govt Targets 200,000 Individuals To Be Discharged From Bankruptcy This Year
SHAH ALAM, June 23 (Bernama) -- The government is targeting 200,000 individuals to be discharged from bankruptcy by the end of this year. Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said that so far, approximately 186,000 individuals have been successfully released from the problem. She said the record was obtained by the Malaysian Insolvency Department following the government's efforts in giving a second chance to the affected group to continue their lives. "We hope by the end of the year, we can give a calculation (people released from bankruptcy status). So in total we hope to target 200,000 this year," she said. She told reporters after the launch of the Financial Literacy Programme for Public Higher Education Institutions (IPTA) and Private Higher Education Institutions (IPTS) in 2025 by Malaysian Insolvency Department at Universiti Teknologi Mara (UiTM) Shah Alam today. Also present was UiTM vice-chancellor Prof Datuk Dr Shahrin Sahib @ Shabuddin. When tabling Budget 2025, Prime Minister Datuk Seri Anwar said the Second Chance Policy would be expanded to young people aged 40 and below who have debts not exceeding RM200,000 starting last year. Meanwhile, Azalina said a total of 25,578 bankruptcy cases were recorded from 2021 to May 2025 from the age of under 25 to 55 and above. Of that total, she said, 10,145 bankruptcy cases were recorded involving the 35 to 44 age group.
The Star
23-06-2025
- Business
- The Star
Govt aims for 200,000 individuals to be discharged from bankruptcy in 2025
SHAH ALAM: The government is targeting 200,000 individuals to be discharged from bankruptcy by the end of this year. Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said that so far, approximately 186,000 individuals have been successfully released from bankruptcy. She said the record was obtained by the Malaysian Insolvency Department following the government's efforts in giving a second chance to the affected group to continue their lives. "We hope by the end of the year, we can give a calculation (people released from bankruptcy status). So in total, we hope to target 200,000 this year," she said. She told reporters after the launch of the Financial Literacy Programme for Public Higher Education Institutions (IPTA) and Private Higher Education Institutions (IPTS) in 2025 by Malaysian Insolvency Department at Universiti Teknologi Mara (UiTM) Shah Alam on Monday (June 23). Also present was UiTM vice-chancellor Prof Datuk Dr Shahrin Sahib @ Shabuddin. When tabling Budget 2025, Prime Minister Datuk Seri Anwar said the Second Chance Policy would be expanded to young people aged 40 and below who have debts not exceeding RM200,000, starting last year. Meanwhile, Azalina said a total of 25,578 bankruptcy cases were recorded from 2021 to May 2025 from the age of under 25 to 55 and above. Of that total, she said, 10,145 bankruptcy cases were recorded involving the 35 to 44 age group. She said that by gender, men recorded higher bankruptcy cases than women, at 18,590 during the same period. Meanwhile, Azalina said the programme organised on Monday was one of the proactive steps taken by the Madani government to bring laws and financial management knowledge and literacy to the people, especially students of higher learning institutions who are about to enter the working world. About 1,000 students from public and private universities and colleges were involved in the one-day programme. - Bernama
