KUALA LUMPUR: Low starting salaries, easy access to debt through credit cards and buy now, pay later (BNPL) schemes, and poor personal financial management are the main drivers of personal bankruptcies in Malaysia, experts say.

Putra Business School economic analyst Dr Ida Yasin said personal factors were a significant contributor, and many of those who fell into bankruptcy were young, often under 30.

"Inflation and stagnant wages play a role because the cost of goods and services has increased, while wages — particularly at lower income levels — remain largely unchanged.

"Personal factors, such as spending habits, also lead individuals into bankruptcy. My concern is that many of them are very young, under 30 years old," she told the New Straits Times today.

Ida said that while individuals must take responsibility, the government could also help by designing policies that set lower borrowing limits.

She said banks often favoured high-interest debt, but the concern now was that people were using BNPL and credit cards for everyday necessities, not just major purchases.

"I think the government should play a role in limiting BNPL schemes and credit card usage.

"Awareness campaigns have been carried out, but now government intervention is needed to stop or restrict excessive borrowing. We need much tighter control," she said.

She added that the rise in bankruptcy cases suggested that awareness initiatives alone might no longer be sufficient.

"But it doesn't mean we should stop. We must continue creating awareness, but other measures are needed to curb the rising numbers, which are approaching 500 cases per year — a significant figure," she said.

Meanwhile, Movement of Monetary Justice vice chairman Professor Dr Ahmed Razman Abdul Latiff said multiple factors contributed to the increase in bankruptcies, including low starting salaries and easy access to debt facilities.

This included traditional financing such as personal loans and credit cards, as well as BNPL facilities, an instant-gratification lifestyle, social media influence, high living costs and poor personal financial management.

"Continuous personal financial management learning engagement, support from the Credit Counselling and Debt Management Agency, and stricter requirements for access to financing are all in place — but it ultimately depends on personal financial discipline.

"In addition, alternatives to debt financing that are not subject to bank interest should be made available and championed so people do not sink further into debt due to interest charges," he said.

He also suggested that employers should advertise salaries upfront to make jobs more competitive, and that facilities such as BNPL should be more closely regulated under the Consumer Credit Act.

Earlier today, the NST reported that rising personal bankruptcies in Malaysia signal growing financial strain among households — a trend economists warn could, if left unchecked, undermine productivity, dampen consumer spending and weaken investor confidence.

Bank Negara Malaysia's revised Policy Document on Personal Financing aims to strengthen household resilience by limiting high-risk borrowing and requiring financial education for larger loans.

In the first nine months of 2025, Malaysia recorded 4,875 bankruptcy cases, a 5.7 per cent increase from the 4,611 cases registered during the same period in 2024. A total of 3,491 cases, or 71.6 per cent, involved debts between RM500,000 and RM999,999, while 1,004 cases, or 20.6 per cent, involved debts between RM100,000 and RM499,999.