More than half of bankrupts in KK youths
Published on: Friday, May 12, 2017
Kota Kinabalu: Youths in the State are not spared from bankruptcy with the numbers of young people being declared one increasing each year.According to statistics given by the Insolvency Department for the period January 2016 to March 2017, youths represented more than half the number of active bankruptcy cases in Kota Kinabalu, accounting for 484 cases out of 846 cases. Of that figure there were even cases of youths under 25 being declared bankrupt (six cases) while the majority of youth bankrupts were those in the 25-34 age bracket (183 cases) and 35-44 age group (295 cases) out of a total of 846 cases. In that same period 629 bankrupts were males while 217 were females.
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The Kota Kinabalu figures also showed the highest number of bankrupts involved Sabah bumiputeras at 74 per cent (628 persons) with Chinese second at 14.5 percent (123 persons) while the highest leading causes of bankruptcy were personal loans at 329 cases and vehicle loans which accounted for 215 cases.There are currently 8,703 active cases of bankruptcy in Kota Kinabalu alone for the period 2013 to March 2017.According to State Insolvency Office Director, Monica Linsua the statistics showed that each year it is increasing. "Perhaps we see this increase is because the economic situation is not good nowadays and maybe also a lack of awareness on debt and financial management in the community," he said.
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Linsua said this to the media when met at the Kota Kinabalu branch Malaysian Insolvency Department "A day with MDI" programme at the Federal Administrative Complex here on Thursday.On the programme itself she said the objective of the Malaysian Department of Insolvency (MDI) programme which was held nationwide at the same time was to introduce to the public to changes in the bankruptcy policies where the bankruptcy laws (amended) 2016 have already been approved in the Dewan Negara in April 2017 with the date of effect to be determined by the minister.
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Regarding the number of civil servants in Kota Kinabalu declared bankrupt, she said from the period 2005 to Feb 2017 the department recorded 171 cases with the highest number of 44 cases in 2016 and second highest of 41 in 2015.Meanwhile the event also saw four bankrupts being selected to receive certificates of release under Section 33a of the Bankruptcy Act. Under the section the insolvency director general has the discretion to select eligible bankrupts to receive the bankruptcy release certificates.According to Linsua among the criteria is that the administration of bankrupts exceeded five years, they have given good cooperation to MDI, followed each instruction and regulation under the Act.Stay up-to-date by following Daily Express’s Telegram channel.
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