Bankruptcy Statistics Based on Credit Card Debts in Malaysia

We have total of 3.2 million credit card holders nationwide last year. Did you know how many of them were failed to pay credit card debts and caused them bankrupt in 2009? Make a guess?

On average, the percentage of credit card holders declared bankrupt was only 0.04% out of the total number of principal credit card holders in the last five years, Deputy Finance Minister Datuk Donald Lim said.” Source: theSun

Surprisingly, there were only total of 405 credit card holders. I feel the figure is relatively small compare to my expectation in mind.

So far, the Department of Insolvency Malaysia (MDL) had restructured 80,348 bankruptcy cases from 2005 to May 2010 categorized as following:

  • 31,950 cases – Malay
  • 26,805 cases – Chinese
  • 7,661 cases – Indians
  • 13,932 cases – Others

Here are some of the cases involved in different type of loans that caused the bankruptcy:

  • 19,380 cases for failing to settle hire purchase loans
  • 9,464 cases for failing to settle personal loans
  • 8,786 cases for failing to settle business loans
  • 6,022 cases for failing to settle housing loans
  • 4,417 cases for failing to settle credit card debts
  • 4,291 cases for failing to settle corporate loans
  • 3,726 stood as guarantors

Bear in mind, the collective number of bankruptcy cases have reached 218,561 nationwide as of June 2010. So, does the bankruptcy statistics help us in analyze property market trend in the country? Well, we will monitor and study about it.

For more information, please visit MDL official website

6 thoughts on “Bankruptcy Statistics Based on Credit Card Debts in Malaysia”

  1. Chong Kong Hui

    Deputy Finance Minister Datuk Donald Lim was talking non-sense?

    OR he misled reader by simple put up 0.04% from no-where.

    OR he is talking about 0.04% out of total credit card oustanding balance.

    OR… He don’t even knows what is he talking about.

    OR…. the Sun print wrongly the number.

    OR……. I don’t know what am i talking about.

  2. Allan

    Im very upset with Bankers issuing Credit Cards.What happened is that,if you dont pay your minimum monthly for many years with your Limit of RM5k, you will end up having a RM50K outstanding balance.Yes they will give you 50% discount..but are you justified to pay RM25K after discount??That’s probably the reason a person can easily goes bankrupt with just an initial RM5K limit.Bankers are even cruel than Ah Longs.They are a bigger version of Ah Longs.

  3. Allan

    The reason why there are critical divorce rate in the country,because people resort to Ah Longs to get monetary assistance and the consequence s are devastated.Why they borrow from Ah Longs? because Banks don’t lend them becoz they are blacklisted.Why? because they default Credit Cards….Again everything evil derives from Credit Cards..who give Credit Cards? the father of all evil..the bankers!

  4. Allan

    I tell you an example of how Credit Card can kill. I have 5 credit cards..each card demanding me to pay minimum RM200 per month. If 5 cards, that’s equivalent to RM1,000 i have to pay for credit cards alone.If my salary is RM1,700..i got only RM700 for me to pay for everything..certainly it’s not enough!!!but im not blacklisted yet! I borrow from friends/other source to cover my liabilities.
    I dont want to go to AKPK..because most people perceive those who go to AKPK are those associated with bankruptcy or people with financial problems..many people are unaware of the AKPK..That’s what happen to our society..AKPK must play greater role to promote themselves and their role to help alleviate the current crisis

    • Silver

      This is a bunch of crap. Why do you still keep 5 credit cards when you know you have to pay 1000 each month? Nobody forces you to get a credit card and don’t try to blame other people on your ignorance.

  5. Allan

    Continue….paying RM1,000 monthly is enough to make your life suffer..You may counter me question like ” why you borrow from Credit Cards?” answer, ..i cannot do anything..what is past is past, I cannot take it back.I want to solve/rectify what has been done..
    Just imagine the rest of the Credit Card Holders who are not blacklisted yet,who continues to pay credit cards instalments like me..just imagine the supposedly 3 Million Credit Holders..just imagine that..