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Personal Loans Lead Bankruptcy Cases Among Civil Servants

1 min read
Personal Loans Lead Bankruptcy Cases Among Civil Servants
Photo by Melinda Gimpel on Unsplash.

From 2020 to date, 628 bankruptcy cases involving Selangor civil servants have been recorded, with personal loans cited as the leading cause, followed by housing and vehicle loans.

Civil Servants Bankruptcy

Selangor Insolvency Department director Pavani Kasi noted a decline in cases for 2025, attributing it to improved financial literacy efforts. Credit card-related bankruptcies have also decreased, reflecting better financial awareness.

Pavani hopes the trend continues toward zero bankruptcies. She urged financial institutions to review lending practices and tighten conditions. Nationwide, 4,194 civil servant bankruptcies were recorded between 2020 and June 2025, representing 0.3% of Malaysia’s 1.6 million government employees.

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Personal Loans Lead Bankruptcy Cases Among Civil Servants
Photo by Melinda Gimpel on Unsplash.

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