24 June 2022

Press statement by MCA Youth Secretary-General Daniel Wa Wai How

Reminder for youths to manage finances prudently

In several reports yesterday (23 June 2022), the Insolvency Department revealed that the number of bankruptcies totalled at 274,628 as of May 2022. More worryingly, statistics showed that an average of 18 people were declared bankrupt daily in the first 5 months of 2022, while more than 200 of those declared bankrupt since 2018 were aged 25 or younger.

According to the report, almost half of the bankruptcies were caused by personal loans, vehicle hire purchases, business loans, and outstanding credit card payments. In other words, it can all be linked to overspending.

Furthermore, a study done by the Organisation for Economic Co-operation and Development found that Malaysians scored below average in financial knowledge, reflecting gaps in financial decision making.

Thus, MCA Youth urges all Malaysians, especially youths, to be more frugal in their personal finances. This is because financial literacy is a personal responsibility, which should be cultivated from a young age. MCA Youth also urges the government to double down on efforts to educate Malaysian citizens on financial management, and nurture a new generation of smart, prudent youths.

At the age of 18 – 25 years old, youths should be extra careful of their spending by making sure that they keep to a budget and not overspend. If a person is declared bankrupt, there will be various implications, including asset seizure and travel bans, denying them from experiencing their lives fully.

Hence, MCA Youth urges Malaysians to spend within their means, always keep a healthy financial profile, and make it a habit to save for rainy days.

Daniel Wa Wai How

MCA Youth Secretary-General

-MCA Online-