KUALA LUMPUR: The number of young people in Malaysia declared bankrupt due to credit card usage is still relatively low.
Deputy Finance Minister Datuk Othman Aziz said from January to September, only nine below the age of 30 were declared bankrupt.
He said the number registered this year was still lower compared to the same period in 2016 where 22 were declared bankrupt.
“Among the main cause of bankruptcy among the younger generation was due to usage of credit card which exceeds their earning capability.
“From 2014 to 2016, the average statistic of younger generation declared bankrupt stands at only 1.1 per cent.
“Majority of bankruptcy cases due to credit card occurs among those who are 30 years and above,” said Othman in responding to questions from Sipitang MP, Datuk Sapawi Ahmad Wasali at the Dewan Rakyat on Wednesday.
Othman said Bank Negara had taken various measures to ensure only eligible and capable users were allowed to apply for a credit card to control the level of debts.
Among measures taken were increasing the minimum annual salary of credit card users from RM18,000 to RM24,000.
Besides this, for credit card users with an annual salary of RM36,000 or less, they are only allowed to own two credit cards and have a maximum limit not more than two times of the users monthly salary.
Reports by ARFA YUNUS, BEATRICE NITA JAY and FERNANDO FONG