Some Malaysians are intentionally declaring bankruptcy to evade high loan repayments, opting for minimal monthly contributions set by the insolvency department. Director-general Bakri Majid highlighted cases where debtors exploit the system, benefiting from reduced payments that do little to clear their debts. In one instance, a government officer declared bankruptcy after failing to repay a RM700,000 loan, resulting in a mere RM200 monthly contribution. Bakri noted that such individuals may invest loan money under others’ names, making long-term gains while creditors suffer losses. He urged stricter loan reviews and legal action against those hiding assets to curb financial irresponsibility.
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