YOUNG people need to be financially knowledgeable to avoid falling into heavy debts and being declared bankrupts.

MCA Youth chief Chong Sin Woon said last year, it was estimated 70% of persons declared bankrupt were the young.

“Last year, out of nearly 300,000 people declared bankrupt, 70% were young people ... these groups are most vulnerable to incurring financial burdens such as personal loans, vehicle loans and credit cards.

“Many young people believe in trends like quick rich schemes, for example. Actually, they know it is a fraudulent scheme, but sometimes they just want to try their luck,” he said after launching the Financial Planning Literacy Programme for Youth in Seremban today.

Also present was Malaysia Financial Planning Council president Michael Kok Fook On.

Insolvency Department director-general Abdul Rahman Putra Taha said on September 14 that 294,000 Malaysians were involved in bankruptcy cases due to hire-purchase, credit cards, personal loans, housing loans and social loans.

Abdul Rahman said, according to the department’s statistics, 70% involved those aged 35 to 45 years, and estimated around 18,000 to 20,000 individuals were declared bankrupt due to various reasons within a year.

Chong, who is also deputy education minister, said he was worried the trend would continue to rise due to the unhealthy lifestyle and financial planning of young people.

“This programme is to share knowledge and experience with regard to financial management to the young people. 

“This is an important knowledge to teach children and young people about good financial management.

The programme was attended by 200 people comprising members of Negri Sembilan Youth Associations and Form Six students. – Bernama, January 6, 2018.