Chinese President Xi Jinping's 2026 New Year message; Global leaders welcome New Year with greetings

Chinese President Xi Jinping's 2026 New Year message

BEIJING, Dec. 31 (Xinhua) -- On New Year's Eve, Chinese President Xi Jinping delivered his 2026 New Year message through China Media Group and the internet. The following is the full text of the message:

Greetings to all! Year after year, life opens a fresh chapter. As the new year begins, I extend my best wishes to you from Beijing!

The year 2025 marks the completion of China's 14th Five-Year Plan for economic and social development. Over the past five years, we have pressed ahead with enterprise and fortitude, and overcome many difficulties and challenges. We met the targets in the Plan and made solid advances on the new journey of Chinese modernization. Our economic output has crossed thresholds one after another, and it is expected to reach RMB 140 trillion yuan this year. Our economic strength, scientific and technological abilities, defense capabilities, and composite national strength all reached new heights. Clear waters and lush mountains have become a salient feature of our landscape. Our people enjoy a growing sense of gain, happiness and security. The past five years have been a truly remarkable journey, and our accomplishments have not come easily. Your unwavering hard work has made our nation thrive and prosper. I salute you all for your exceptional diligence and invaluable contributions.

This year is full of indelible memories. We solemnly commemorated the 80th anniversary of the victory of the Chinese People's War of Resistance Against Japanese Aggression and the World Anti-Fascist War, and established the Taiwan Recovery Day. These grand national events were majestic and powerful, and the glory of victory will shine through the pages of history. They are inspiring all the sons and daughters of the Chinese nation to remember history, honor fallen heroes, cherish peace, and create a better future. They are rallying a mighty force for the great rejuvenation of our nation.

We sought to energize high-quality development through innovation. We integrated science and technology deeply with industries, and made a stream of new innovations. Many large AI models have been competing in a race to the top, and breakthroughs have been achieved in the research and development of our own chips. All this has turned China into one of the economies with the fastest growing innovation capabilities. The Tianwen-2 probe began its star-chasing journey to explore asteroids and comets. Construction of the hydropower project at the lower reaches of the Yarlung Zangbo River started. China's first aircraft carrier equipped with an electromagnetic catapult system was officially commissioned. Humanoid robots did kung fu kicks, and drones performed spectacular light shows. Inventions and innovations have boosted new quality productive forces and added colorful dimensions to our lives.

We endeavored to nurture our spiritual home with cultural development. There was a surging public interest in cultural relics, museums, and intangible cultural heritage. A new Chinese cultural site was added to the World Heritage List. Cultural IPs such as Wukong and Nezha became global hits. The younger generation came to deem classic Chinese culture as the finest form of aesthetic expression. The cultural and tourism sectors thrived. The "super league" football games in our cities and villages attracted numerous fans. Ice and snow sports ignited people's passion for the winter season. Tradition is now embracing modernity, and the Chinese culture is shining in even greater splendor.

We joined hands to build a better life and enjoyed it together. I attended celebrations in Xizang and Xinjiang. From the snow-covered plateau to both sides of the Tianshan Mountains, people of various ethnic groups are united as one, like seeds of a pomegranate sticking together. With white khatas and passionate singing and dancing, they expressed their love of the motherland and the happiness they enjoy. No issue of the people is too small; we care for every leaf and tend every branch in the garden of people's well-being. Over the past year, the rights and interests of the workforce in new forms of employment have been better protected, facilities have been upgraded to bring more convenience to the elderly, and each family with childcare needs has received a subsidy of RMB 300 yuan per month. When the happy hum of daily life fills every home, the big family of our nation will go from strength to strength.

We continued to embrace the world with open arms. The Shanghai Cooperation Organization Summit in Tianjin and the Global Leaders' Meeting on Women were very successful; and island-wide special customs operations were launched in the Hainan Free Trade Port. To better address climate change, China announced new Nationally Determined Contributions. After announcing the three global initiatives on development, security, and civilization, I put forward the Global Governance Initiative to promote a more just and equitable global governance system. The world today is undergoing both changes and turbulence, and some regions are still engulfed in war. China always stands on the right side of history, and is ready to work with all countries to advance world peace and development and build a community with a shared future for humanity.

Not long ago, I attended the opening ceremony of the National Games, and I was glad to see Guangdong, Hong Kong and Macao coming together in unity and acting in unison. We should unswervingly implement the policy of One Country, Two Systems, and support Hong Kong and Macao in better integrating into the overall development of our country and maintaining long-term prosperity and stability. We Chinese on both sides of the Taiwan Strait share a bond of blood and kinship. The reunification of our motherland, a trend of the times, is unstoppable!

Only a strong Communist Party of China can make our country strong. We launched the study and education program on fully implementing the central Party leadership's eight-point decision on improving Party and government conduct. We exercised strict governance of the Party through credible measures, and promoted the Party's self-revolution to fight corruption and advance healthy governance. As a result, the conduct of our Party and government steadily improved. We must stay true to our original aspiration and founding mission, and pursue our goal with perseverance and dedication. We should continue to give a good answer to the question on how to maintain long-term governance put forth in a cave dwelling in Yan'an and prove ourselves worthy of the people's expectation in the new era.

The year 2026 marks the beginning of the 15th Five-Year Plan. A successful venture should start with a good plan and with clear goals set. We should focus on our goals and tasks, boost confidence, and build momentum to press ahead. We should take solid steps to promote high-quality development, further deepen reform and opening up across the board, deliver prosperity for all, and write a new chapter in the story of China's miracle.

The dream lofty, the journey long -- bold strides will get us there. Let us charge ahead like horses with courage, vitality, and energy, fight for our dreams and our happiness, and turn our great vision into beautiful realities.

The sun of the new year will soon rise. May our great motherland stand in magnificence! May the fields across the country deliver good harvest! May our nation bathe in the glory of the morning! May you all enjoy life to the fullest, and achieve every success! May all your dreams come true! ■

Global leaders welcome New Year with greetings

As the world celebrates the coming of 2026, international leaders have welcomed the New Year with greetings. 

"I wish you all good health and happiness, understanding and prosperity. And, above all, love which inspires us. May our traditions, faith, and memory bind all generations together, supporting us always and in everything," Russian President Vladimir Putin said in his New Year address to the nation on December 31, 2025 local time. 

Photo: Kremlin website

President of the Republic of Belarus Aleksandr Grigoryevich Lukashenko wished the 2026 to be peaceful and safe for not only for Belarus but for all the countries and nations.

Photo: screenshot of New Year address of President of the Republic of Belarus Aleksandr Grigoryevich Lukashenko

He also noted that "Attempts were made to make us live according to foreign laws, to separate us into 'right' and 'wrong' people, to test our durability with economic storms and political pressure without understanding that Belarus has something they cannot take away. It is our habit to stick together, to work together." 

 "Wishing everyone a wonderful 2026! May the year ahead bring good health and prosperity, with success in your efforts and fulfilment in all that you do. Praying for peace and happiness in our society," Indian Prime Minister Narendra Modi wrote on X on the first day of 2026.

 

Photo: screenshot of Indian Prime Minister Narendra Modi’s X post

Pakistani Prime Minister Shehbaz Sharif has extended New Year greetings to the entire nation, expressing expressed hopes that every day of the new year would further strengthen values such as national integrity and harmony. 

Photo: Screenshot of Pakistani Prime Minister Shehbaz Sharif’s X post

French President Emmanuel Macron said in his New Year's address that 2026 "can be and must be a fruitful year," France 24 reported. 

Photo: screenshot of French President Emmanuel Macron’s New Year address

In his post on X on the first day of 2026, Macron wished unity, strength and independence and hope for the country and wished his compatriots a very beautiful and happy year of 2026.

German Chancellor Friedrich Merz in his first New Year's televised address to the nation, saying that 2026 could prove to be "a year of new beginnings," in which Germany and Europe "reconnect with decades of peace, freedom and prosperity," according to German international broadcaster Deutsche Welle. 

Photo: screenshot of German Chancellor Friedrich Merz in his first New Year's televised address

The German leader also said that various geopolitical, economic and technological developments did indeed represent an "epochal shift," but stressed that it was up to Germany to overcome the challenges with its own strength, DW reported. 

British Prime Minister Keir Starmer said in his New Year message, "Things have been tough in Britain for a while. For many, life is still harder than it should be." 

Starmer pledged to make more people "feel positive change in your bills, your communities and your health service," a change he hoped would reverse the country's decline.  

Photo: screenshot of British Prime Minister Keir Starmer’s televised New Year address

Ukrainian President Volodymyr Zelensky said that Ukraine is doing everything possible to achieve peace but will not accept a deal that compromises the country's survival, in a New Year address delivered from Kiev, local media reported. 

"We want the end of the war — not the end of Ukraine," Zelensky said, adding that Ukrainians are exhausted but not prepared to surrender.

Photo: Ukrainian President Volodymyr Zelensky’s X post

"Feliz 2026," wrote Brazilian President Luiz Inacio Lula da Silva in an X post on Thursday. 

Photo: Brazilian President Luiz Inacio Lula da Silva’s X post

South Korean President Lee Jae-myung said in a New Year's message on Thursday that 2026 will mark Korea's "great leap forward" after restoring a nation set back by a martial law fiasco, Korea JoongAng Daily reported. 

Photo: Blue House

Lee also said as a "pacemaker," he will "actively support the resumption of North Korea-US talks and continue pursuing the restoration of inter-Korean relations this year" and ensure "peaceful coexistence" on the peninsula.

Global Times 

In 2026, the world can continue to place expectations on China: Global Times editorial

Bidding Farewell to 2025: A Chinese Media Perspective on the Year's Landmark Events

When you see the words “Farewell 2025,” don't you feel a little astonished – has the last day of 2025 really arrived? After all, the feverish run of Ne Zha 2 still feels like it happened only yesterday. Yet, though time slips away and the years fly, the Global Times, as in years past, strives to look back – through the lens of a Chinese media – at the defining events that marked China and the world in 2025, and to tell what kind of year 2025 proved to be. This marks the very first time we have translated such an annual retrospective report into English.

By GT staff reporters | 2025/12/31 13:52:36

China's CASC sets new record with 73 orbital launches in 2025

On December 31, the successful launch of the Long March-7A carrier rocket delivered the Shijian-29 satellite into orbit. With this mission, the state-owned space giant China Aerospace Science and Technology Corporation (CASC) has completed a record of 73 space launch missions throughout 2025, the CASC 

Happy New Year 2026, 2025 in Review with Professor Martin Jacques

Happy New Year 2026 Wishes Images, Quotes, Status: Share wishes with friends and family

Happy New Year 2026 Wishes Images, Quotes, Status, Wallpapers, Greetings Card, Messages, Photos, Pics: As 2025 New Year’s Eve celebrations unfold worldwide today, people prepare to welcome the New Year 2026 with vibrant fireworks, festive gatherings, and thoughtful resolutions.

Happy New Year 2026 Wishes Images, Status, Messages LIVE: Welcome the New Year with 20+ Greetings, Quotes, Latest Updates, and more

IndianExpress.com has curated a selection of warm wishes, inspirational messages, eye-catching images, and social media updates to help readers share the spirit of the season and celebrate the New Year on a joyful, uplifting note.

Happy New Year 2026: Warm wishes to share with family

May 2026 bring our family good health, happiness, and peace.

Wishing a New Year filled with love, laughter, and togetherness.

2025 in Review with Professor Martin Jacques

Tech war endgame

Unwitting assistance: The US still cannot comprehend that China’s tech gains will only multiply when challenged, says the writer. — Reuters

Regardless of whether china can import the best chips, the fullon surge towards its own cutting-edge technology continues. 

THROUGHOUT this year, the most incessant and pernicious concern most countries share has been Washington’s “reciprocal” tariffs.

The fact that Donald Trump hit the whole world with tariffs since returning to office in January assured him of global attention, but of the negative sort.

Grabbing world headlines while confounding critics was classic Trump. The surprise came in how spiralling US tariffs against China were abruptly deflected onto the rest of the world instead.

That resulted from what must have been a surprise to the Trump administration itself: tariffs on China were suddenly halted in their tracks when Beijing hit back with counter-tariffs of its own.

Moral of the story: respond innovatively, don’t just succumb. Pull some surprises of your own.

Trump 2.0’s tariffs had another unintended consequence – lumping allies, partners and everyone else together with its perceived adversaries. This assertion of hard power came at the expense of its soft power and international credibility.

The US had underestimated China’s capacity again. Multiple examples abound of how two can play Trump’s game of trade shock and awe.

This is by now a standard principle of Us-china rivalry: squeeze Beijing hard, and get an unintended and opposite effect. The lesson was never learned – tariffs, sanctions and bans have only spurred China to achieve more and grow stronger.

From its own International Space Station Tiangong and the world’s first moon landing on the far side to breakthroughs in quantum computing and nuclear fusion technology, China’s gains have multiplied when challenged. And the US appears all set to continue this unwitting “assistance”.

The Deepseek moment when China achieves equivalent or better success with higher value, in less time, and at lower cost has become almost routine. Deepseek itself was followed by Moore Threads, whose billion-dollar status, early IPO and massive oversubscription on opening day thrashed all its Western peers by a stunning factor of several thousand.

Among China’s more recent technological feats is Shenzhen’s Extreme Ultra-violet (EUV) lithography prototype. This triumph against the odds came despite, or rather because of, the US ban on sales of EUV machines to China.

It followed the familiar and flawed assumption that China cannot build competitive technology of its own. This myth persists despite repeated warnings from tech industry leaders in the West.

Former ASML CEO Peter Wennink had predicted that Us-led Western pressure against China’s technological development would only backfire by massaging its STEM prowess. Nvidia CEO Jensen Huang observed that China was only ‘nanoseconds’ behind in making the world’s most advanced chips.

Nvidia designs high-end chips made by Taiwan’s TSMC with ASML’S EUV equipment from the Netherlands. The US has tried hard to keep China out of this vital supply chain, but with steadily diminishing success.

Such futility stems from failure to appreciate the interconnectedness of global industry and all its implications, and not least China’s already considerable capacity galvanised by its irrepressible will to succeed. The condescending attitude that “China can only copy, not innovate” adds to its determination to beat all the odds.

Prior to China’s launch of the Asian Infrastructure Investment Bank (AIIB) a decade ago, US cynics said China had nobody competent to run it. But it appointed founding President Jin Liqun, a respected professor and senior veteran of the World Bank, the Asian Development Bank and China’s Finance Ministry.

It happened again with Deepseek and Moore Threads, under their founding CEOS Liang Wenfeng and James Zhang. Since the Western commentariat had not heard of them, the capacity they represented was deemed non-existent.

Yet a 23-year-old Liang was already leading his Chinese team in collecting data on financial markets while the US was struggling with the Great Recession of 2008. Zhang is a 14-year veteran of Nvidia and its former Vicepresident.

Another shock to the West came with the Shenzhen EUV prototype passing all its scheduled tests. Among its lead scientists is Lin Nan, former head of ASML’S photolithography department key to making the world’s most powerful chips.

China is also experimenting with graphene and photonic chips, potentially leapfrogging today’s silicon-based versions by multiple generations. Meanwhile a gushing ‘brain drain’ of tech talent from the West to China approximates to a flood.

After Chinese nationals in toptier Western corporations and institutions returned to China, ethnic Chinese from the diaspora followed, then skilled Westerners migrated as well. The US Congress sounded the alarm and called for reversing the trend, but to no avail.

Migrating scientists are not just attracted by generous new contracts. US agencies are imposing damaging cuts in R&D funding and tough visa restrictions on foreign talent.

Asians are particularly affected after being made to feel unwelcome in the US socially, politically and professionally. The US tally of own goals continues to see a scoring spree.

The tariffs are Washington’s threat to tax itself unreasonably. Savvy countries calling its bluff remain free to develop their own inventiveness, with fresh resilience and leverage as accompaniment.

BUNN NAGARA Bunn Nagara is director and senior fellow at the 

Renaissance Strategic Research Institute and Honorary Fellow of the Perak Academy. The views expressed here are solely the writer’s own.

 

 

 

 

Related

 

 

 2025 in Review with Professor Martin Jacques

Najib convicted on all 25 charges in 1MDB graft trial

 

Judge rules defence failed to raise reas­on­able doubt on power abuse, money laun­der­ing charges involving RM2.3b

PUTRAJAYA: Former prime minister Datuk Seri Najib Razak has been found guilty on all 25 charges in his corruption trial linked to the misappropriation of RM2.3bil from 1Malaysia Development Bhd (1MDB).

The historic judgment by the High Court, in one of the most closely watched trials in the country, marks a major victory for the prosecution in the sprawling 1MDB saga which has drawn intense domestic and international scrutiny.

Najib, 72, was convicted on four charges of abusing his power and 21 counts of laundering funds belonging to 1MDB.

The verdict was handed down yesterday by trial judge Justice Collin Lawrence Sequerah (pic), who has since been elevated to the Federal Court.

He took more than five hours to read the judgment.

The judge found that the prosecution had succeeded in proving every one of the 25 charges against Najib beyond a reasonable doubt.

Najib had faced four charges of using his position to obtain RM2.3bil in bribes from 1MDB funds through the AmIslamic Bank Bhd branch in Jalan Raja Chulan between Feb 24, 2011, and Dec 19, 2014.

'CLICK TO ENLARGE'

These charges were brought under Section 23(1) of the Malaysian Anti-Corruption Com­mission (MACC) Act 2009, which carries up to 20 years’ imprisonment and a fine of either five times the amount of the bribe or RM10,000, whichever is higher, upon conviction.

Najib also faced an additional 21 counts of money laundering at the same bank between March 22, 2013, and Aug 30, 2013.

These charges were framed under Section 4(1)(a) of the Anti-Money Laundering, Anti-Terror­ism Financing and Proceeds of Unlawful Activities Act 2001, which carries a maximum penalty of five years’ imprisonment, a fine of up to RM5mil, or both.

Throughout the proceedings yesterday, Najib, sporting a blue suit, remained composed as his wife Datin Seri Rosmah Mansor, daughters Nooryana Najwa and Puteri Norlisa, and sons Datuk Mohd Nazifuddin and Datuk Mohd Nizar watched on,

Deputy public prosecutors Datuk Ahmad Akram Gharib and Datuk Kamal Baharin Omar led the prosecution while Tan Sri Muhammad Shafee Abdullah represented the former prime minister.

Najib was first charged on Sept 20, 2018.

The trial commenced on Aug 28, 2019, with the prosecution formally closing its case on May 30, 2024.

The high-profile seven-year trial saw 50 prosecution witnesses including former Bank Negara governor Tan Sri Zeti Akhtar Aziz, former 1MDB chief executive officer Datuk Shahrol Azral Ibrahim Halmi, former 1MDB chairman Tan Sri Mohamad Bakke Salleh, former 1MDB general counsel Jasmine Loo Ai Swan and MACC investigating officer senior Supt Nur Aida Ariffin.

On Oct 30, 2024, the High Court ruled that the prosecution had established a prima facie case and ordered Najib to enter his defence on all charges.

The defence case was heard over a 58-day period from Dec 2, 2024, to May 6, 2025, during which a total of 26 witnesses testified.

Key witnesses for the defence included former 1MDB chairman Tan Sri Che Lodin Wok Kam­arudin, Tengku Datuk Rahimah Sultan Mahmud, a sister of the Sultan of Terengganu, and former minister in the Prime Minister’s Department Datuk Seri Jamil Khir Baharom.

The hearing of oral submissions at the end of defence case concluded on Nov 4.

Najib is presently incarcerated at Kajang Prison, where he is serving a sentence for the misappropriation of RM42mil from SRC International Sdn Bhd.

 

China steals a march on US in tech title race

Low cost, high impact ai mod­els surge in global usage

 

Making inroads: A woman descends a staircase in a book store in Beijing. Despite considerable geopolitical tensions, Chinese open-source AI models are winning over a growing number of programmers and companies in the United States. — AFP

NEW YORK: As the United States embarks on a bitter rivalry with China over the deployment of artificial intelligence (AI), Chinese technology is quietly making inroads into the US market.

Despite considerable geopolitical tensions, Chinese open-source AI models are winning over a growing number of programmers and companies in the United States.

These are different from the closed generative AI models that have become household names – ChatGPT-maker OpenAI or Google’s Gemini – whose inner workings are fiercely protected.

In contrast, “open” models offered by many Chinese rivals, from Alibaba to DeepSeek, allow programmers to customise parts of the software to suit their needs.

Globally, use of Chinese-developed open models has surged from just 1.2% in late 2024 to nearly 30% in August, according to a report published this month by the developers’ platform OpenRouter and US venture capital firm Andreessen Horowitz.

China’s open-source models “are cheap – in some cases free – and they work well,” Wang Wen, dean of the Chongyang Institute for Financial Studies at Renmin University of China said.

One American entrepreneur, speaking on condition of anonymity, said their business saves US$400,000 annually by using Alibaba’s Qwen AI models instead of the proprietary models.

“If you need cutting-edge capabilities, you go back to OpenAI, Anthropic or Google, but most applications don’t need that,” said the entrepreneur.

US chip titan Nvidia, AI firm Perplexity and California’s Stanford University are also using Qwen models in some of their work.

The January launch of DeepSeek’s high performance, low cost and open source “R1” large language model (LLM) defied the perception that the best AI tech had to be from US juggernauts like OpenAI, Anthropic or Google.

It was also a reckoning for the United States, locked in a battle for dominance in AI tech with China, on how far its archrival had come.

AI models from China’s MiniMax and Z.ai are also popular overseas, and the country has entered the race to build AI agents, programmes that use chatbots to complete online tasks like buying tickets or adding events to a calendar.

Agent friendly, and open-source, models, like the latest version of the Kimi K2 model from the startup Moonshot AI, released in November, are widely considered the next frontier in the generative AI revolution.

The US government is aware of open-source’s potential.

In July, the Trump administration released an “AI Action Plan” that said America needed “leading open models founded on American values”.

These could become global standards, it said.

But so far US companies are taking the opposite track. Meta, which had led the country’s open-source efforts with its Llama models, is now concentrating on closed-source AI instead.

However, this summer, OpenAI, under pressure to revive the spirit of its origin as a nonprofit, released two “open-weight” models – slightly less malleable than “open-source”.

Among major Western companies, only France’s Mistral is sticking with open-source, but it ranks far behind DeepSeek and Qwen in usage rankings.

Western open-source offerings are “just not as interesting”, said the US entrepreneur who uses Alibaba’s Qwen.

The Chinese government has encouraged open-source AI technology, despite questions over its profitability.

Mark Barton, chief technology officer at OMNIUX, said he was considering using Qwen but some of his clients could be uncomfortable with the idea of interacting with Chinese-made AI, even for specific tasks.

Given the current US administration’s stance on Chinese tech companies, risks remain, he said.

“We wouldn’t want to go all-in with one specific model provider, especially one that’s maybe not aligned with Western ideas,” said Barton.

“If Alibaba were to get sanctioned or usage was effectively blacklisted, we don’t want to get caught in that trap.”

But Paul Triolo, a partner at DGA-Albright Stonebridge Group, said there were no “salient issues” surrounding data security.

“Companies can choose to use the models and build on them, without any connection to China,” he explained.

A recent Stanford study published posited that “the very nature of open-model releases enables better scrutiny” of the tech. — AFP

 Related news:

China sets new record of speed in superconducting electromagnetic propulsion for a maglev system: media report

Recently, during a maglev experiment conducted by the maglev team of China's National University of Defense Technology, a ton-class test vehicle was successfully accelerated to 700 kilometers per hour within just two seconds,

18 bankruptcies recorded each day

 

PETALING JAYA: On paper, earning RM7,000 a month as an assistant engineer should offer a comfortable life. But for Mohd Amir Izzuddin, it barely covers the essentials.

With loans and credit card debts exceeding RM150,000, more than 85% of his income is swallowed up by repayments, leaving little room for savings or unexpected expenses.

CLICK TO ENLARGE

Not all of Mohd Amir’s debts stem from poor decisions. Raised in a village, he grew up believing that a degree and hard work would be his ticket to a modestly better life.

“We’re always told to study and work hard to live better. That’s exactly what I did. So is it really wrong for me to choose a higher-end car and a studio apartment or to enjoy a nice premium steak or seafood platter twice a month? Is life supposed to be so bland, only rewarding us when we’re too old or sick to enjoy our savings?” he said.

Mohd Amir also supports his parents, providing them with a monthly allowance to help cover their expenses and medical bills.

ALSO READ: Think before you swipe, experts tell youths

“They don’t work and have no pension. I give what I can, but it is never enough with the rising cost of living. A proper meal nowadays costs no less than RM12 and my monthly expenses for food exceed RM1,500,” he said.

Now at 35, and more than a decade into his career, Amir regrets that he’s still struggling to stay financially afloat.

“Every month is a battle with the bills. I have no choice but to rely on credit cards, personal loans and BNPL (Buy Now, Pay Later) offers to manage my expenditure since these facilities are very easily available,” he said.

The financial stress has also affected his personal life.

“I have chosen to remain single until I feel financially stable. If I had my own family, they might have to skip meals with the kind of expenses I face monthly,” he said.

Communications executive Arthur Lim, 45, learned firsthand how debt can bring heartache after watching his colleagues sink into financial trouble during his 20s.

“Loans are a huge and profitable business. Those offering them will naturally promote and entice people, but repayment is where the problem begins,” he said.

Lim pointed out that vehicle financing can be particularly costly, adding that an RM120,000 car loan repaid over nine years could result in almost RM100,000 in losses when both depreciation and interest are taken into account.

“Yet some earning under RM4,000 still take the plunge just to look cool. I’m puzzled how these loans were approved when borrowers had other commitments such as home or personal loans.

“There are unscrupulous loan agents who facilitate these huge borrowings for those with low income,” he said.

Lim said he only has a home loan which he took out a decade ago and was relieved to know that the value of his house has appreciated by almost 80%.

For A. Kevin, who is in his 30s, paying off his loans consumes nearly 90% of his RM6,500 income each month, despite his efforts to be thrifty.

He said that as a content creator, a significant portion of his income also goes toward computers, smartphones and the latest software.

“I studied hard and earned a degree, but I feel like I am living like a low-income earner,” said Kevin, adding that he was fortunate his wife’s income helps supplement the household expenditure.

Bank Negara Malaysia’s Credit Counselling and Debt Management Agency (AKPK) told The Star yesterday that credit card debt remains the main reason why most individuals struggle to keep up with their financial obligations.

Since 2006, more than 1.4 million Malaysians have approached AKPK for assistance in managing and recovering from their debts.

According to the Finance Ministry, Malaysian households owed a combined RM54.9bil in credit card and BNPL debt as of September 2025, highlighting the growing reliance on short-term and revolving credit to manage daily expenses.

The pressure has become so intense that it is now spilling over into rising bankruptcy cases.

Earlier this month, during a debate on the Supply Bill 2026 at the Dewan Negara, Senator Datuk Sivaraj Chandran revealed that an average of 18 bankruptcy cases are reported daily in Malaysia, with nearly 60% involving individuals under the age of 30.

He said that between January and September 2025, a total of 4,875 Malaysians were declared bankrupt – a 5.7% increase compared to the same period in 2024.

Sivaraj was also reported to have revealed that about 71.6% of those declared bankrupt owed between RM500,000 and RM1mil, while another 20.6% carried debts of RM100,000 to RM500,000.

Contrary to common belief, it wasn’t housing or business loans, but personal loans and credit card expenses that were the main contributors – accounting for about 45.1% of bankruptcy cases.

Although many people assume that loan approvals are handed out too easily, a senior banker says the process is actually much more stringent than it appears.

Senior economist Mohd Afzanizam Abdul Rashid said that banks generally rely on the Central Credit Reference Infor­mation System (CCRIS) when assessing loan applications, paying particular attention to a borrower’s repayment behaviour over the past 12 months.

“Any arrears will reduce the applicant’s credit score, and the lower the score, the slimmer the chances of approval. At worst, the application may be rejected,” he said.

Afzanizam added that CCRIS reports also allow banks to see how many financing facilities an applicant has applied for across different banks, even if those applications haven’t been approved yet.

Existing loans that have been restructured or rescheduled are also clearly indicated in the report.

“All these factors influence the credit score,” he said. “Borrowers who are already heavily indebted face extremely low chances of securing new financing. In such cases, applying for additional credit is likely to result in outright rejection.”

Related stories:

• Think before you swipe, experts tell youths