PETALING JAYA, 18 Feb: A total of 20,000 bankruptcy cases are expected to occur after the complete data is released for 2013 due to the increase in prices of goods and cost of living, as well as the impact of subsidy reductions.
The PKR de facto leader, Datuk Seri Anwar Ibrahim, said that the remaining statistics are expected to be issued by the Department of Insolvency Malaysia around March 2014.
He said that the phenomenon of bankruptcy is not just focused in Peninsular Malaysia, but across the country, including urban areas in Sabah and Sarawak.
“In the statistics, from January to September 2013, a total of 16,306 people were declared bankrupt, with an average of 1,812 people per month.
“In the same period, a total of 27,432 bankruptcy petitions were filed in court,” he said in a press statement at the PKR Headquarters.
Anwar said that the number of bankruptcy cases for the period increased by 11 percent higher than the monthly average for the same period in 2012.
“In 2012, a total of 19,585 people were declared bankrupt, or at an average of 1,631 people per month.
“Therefore, I expect 20,000 more bankruptcy cases to be reported in March,” he said.
He informed that in 2012, the number of bankruptcy cases, according to race, recorded 48.4 percent from the Malay community, 33.2 percent for the Chinese community and 14.1 percent from the Indian community.
“What’s more shocking is that 4,100 (21 percent) are aged below 34. This is due to the failure in paying their car loans, mortgage and credit cards.
“In 2013, Bank Negara said that banks in Malaysia recorded the highest number since 2006 for personal loans and credit cards; at a total of RM139 billion, compared to RM124 billion (2012) and RM67 billion (2006),” he said.
In this regard, he said that the increase of these loans have caused lower residual income due to the increase in cost of living and not due to the people’s failure in managing personal finances.
“Pakatan Rakyat has presented this matter in Parliament since three years ago. However, the Central Government is only promising a review, but no action,” he said.