Latest news with #MindTransformationProgramme
The Star
4 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
The Sun
4 days ago
- Business
- The Sun
Civil servant bankruptcies in Malaysia hit 4,194 cases from 2020 to 2025
KUALA LUMPUR: The Malaysian Department of Insolvency reported 4,194 bankruptcy cases among civil servants between 2020 and June 2025. This figure represents 0.3 percent of the country's 1.6 million public sector workforce. Deputy Finance Minister Lim Hui Ying highlighted the role of the Credit Counselling and Debt Management Agency (AKPK) in assisting those with financial struggles. The agency provides advisory services, financial management support, and debt restructuring programmes. She added that new civil servants undergo the Mind Transformation Programme for early financial literacy training. The initiative aims to instil prudent debt management habits from the start of their careers. Civil servants are also subject to a rule ensuring their net monthly salary remains at least 40 percent of gross income. This measure helps prevent severe debt accumulation among public sector workers. Lim was responding to Abdul Latiff Abdul Rahman's query on government actions to tackle rising household debt, especially among civil servants. As of March 2025, Malaysia's household debt reached RM1.65 trillion, equivalent to 84.3 percent of GDP. Despite this, Lim noted that household financial assets stood at RM3.45 trillion, 2.1 times higher than total debt. Housing remains the largest component of household debt, accounting for 61.1 percent. The government has introduced affordable housing schemes like Residensi Madani and PR1MA to ease financial burdens. These programmes consider regional cost-of-living differences, including high expenses in Johor Bahru. - Bernama
