628 Bankruptcy Cases Involving Civil Servants Recorded In Selangor

SHAH ALAM, Sept 18 (Bernama) -- A total of 628 bankruptcy cases involving civil servants in Selangor have been recorded from 2020 to date.

Selangor Insolvency Department director Pavani Kasi, said the primary cause of these bankruptcies was personal loans, followed by housing loans and hire-purchase vehicle loans.

However, she noted a downward trend in the bankruptcy statistics in Selangor, particularly for 2025, attributed to improved financial literacy awareness among civil servants.

"For 2025, we are observing a slight decline, likely due to the ongoing awareness initiatives aimed at helping civil servants better manage their finances.

"We are seeing a positive trend in this reduction, and we hope to see this continue, eventually reaching a single-digit or even zero bankruptcy rate," she told reporters at the Selangor Civil Servants Financial Literacy Programme here today.

The programme, which was officiated by Selangor Menteri Besar Datuk Seri Amirudin Shari, was also attended by Datuk Seri Azalina Othman Said, Minister in the Prime Minister's Department (Law and Institutional Reform).

Addressing concerns over bankruptcy cases related to credit card debt, Pavani said such cases have generally decreased among Selangor civil servants, reflecting a positive shift toward greater financial management awareness.

"Bankruptcy cases linked to credit card debt have decreased in recent times. However, further efforts are needed to raise awareness regarding bankruptcies caused by personal loans. Financial institutions could consider reviewing their application processes or tightening certain conditions," she said.

According to reports from the Malaysian Insolvency Department, 4,194 bankruptcy cases involving civil servants were recorded between 2020 and June 2025, representing approximately 0.3 per cent of the 1.6 million civil servants in the country.

-- BERNAMA