The rising bankruptcy among civil servants in this country is becoming increasingly alarming, with the latest reports showing a significant increase in the number of cases within this group.
According to the latest data from the Malaysian Department of Insolvency (MdI), approximately 10 to 13 per cent of new bankruptcy cases registered between 2021 and this year involved the group.
The individual bankruptcy statistics from the public sector were 12 per cent in 2020, 10 per cent in 2021, 11 per cent in 2022, 13 per cent in 2023 and 14 per cent so far this year.
Even more concerning is that the data show an upward trend year by year, despite national bankruptcy data showing a decline.
Most cases involve civil servants who face serious financial difficulties, including being unable to repay personal loans and ineffective financial management.
Economists and financial planners emphasise that high debt burdens, rising living costs and global economic instability were among the main factors contributing to this situation.
Many civil servants are reported to be struggling with managing their personal finances, despite enjoying job security in the public sector.
To address this issue, the government or employers need to provide better financial education and counselling support for them.
Employers can introduce or implement intervention programmes related to financial education in the workplace by inviting hosts or advisors who are experts in the field of finance and so on.
In addition, this group should also be trained to raise awareness about financial management and measures to avoid bankruptcy among public sector employees.
Meanwhile, the government and related agencies should also refine measures to help affected civil servants and reduce the risk of future bankruptcies.
It is hoped that these efforts will bring positive changes and improve the financial well-being of civil servants in this country.