SHAH ALAM: A total of 628 bankruptcy cases involving civil servants in Selangor have been recorded from 2020 to date.
Selangor Insolvency Department director Pavani Kasi stated that the primary cause of these bankruptcies was personal loans, followed by housing loans and hire-purchase vehicle loans.
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,“ she told reporters at the Selangor Civil Servants Financial Literacy Programme.
Pavani expressed hope that this positive trend would continue, eventually reaching a single-digit or even zero bankruptcy rate.
The programme was officiated by Selangor Menteri Besar Datuk Seri Amirudin Shari and 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.
She noted that this decrease reflects a positive shift toward greater financial management awareness among government employees.
“Bankruptcy cases linked to credit card debt have decreased in recent times,“ she confirmed.
Pavani emphasized that further efforts are needed to raise awareness regarding bankruptcies caused by personal loans.
She suggested that financial institutions could consider reviewing their application processes or tightening certain conditions to prevent future cases.
According to reports from the Malaysian Insolvency Department, 4,194 bankruptcy cases involving civil servants were recorded between 2020 and June 2025 nationwide.
This figure represents approximately 0.3% of the 1.6 million civil servants in the country. – Bernama
