SHAH ALAM, Sept 18 — From 2020, 628 bankruptcy cases involving civil servants in Selangor have been recorded.
Selangor Insolvency Department director Pavani Kasi said the primary cause of these bankruptcies is personal loans, followed by housing loans and hire-purchase vehicle loans.
However, she noted a downward trend in bankruptcy statistics in Selangor especially for this year, attributed to improved financial literacy 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, officiated by Selangor Menteri Besar Dato’ Seri Amirudin Shari, was also attended by Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
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 Insolvency Department, 4,194 bankruptcy cases involving civil servants were recorded between 2020 and June this year, representing about 0.3 per cent of the 1.6 million civil servants in the country.
