Personal loans remain the leading cause of bankruptcy among Malaysians
Statistics from the Insolvency Department show that 2,944 Malaysians fell into bankruptcy last year due to personal loans, up from 2,776 cases the year before.
Between 2021 and 2025, personal loans accounted for 13,900 cases, or 47% of all bankruptcies.
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Image via New Straits Times
The second most common cause is business loans, representing nearly 20% of cases over the same period.
Last year, 1,121 individuals were declared bankrupt due to business loans.
Vehicle purchases and housing loans rank third, each contributing around 8% of total cases over the past five years.
A total of 2,499 individuals were declared bankrupt…