High life of the young, carefree and broke Malaysians hit a new low

Younger set not living within their means and are bankrupt before they are 30

 

"When they start their own lives, they are not financially stable. Some want to get married." - Datuk Abdul Rahman Putra Taha

They are young and carefree to the point of being careles, and have expensive tastes. Branded handbags, holidays to exotic places, fancy cars and lavish weddings all lead them into huge debts. By the age of 30, they are bankrupt. Some as young as 25 are among the shocking 60% of the 94,400 people declared bankrupt in the last four years.

PETALING JAYA: They lived the fast life, a life of Pradas and Guccis. When the cash is out, they max out on their credit cards.

Some even go as far as taking up personal loans to finance overseas trips, buying the latest expensive gadgets and holding lavish weddings.

And before they even turn 30, they are bankrupt.

Malaysia’s youth are seeing a worrying trend with those aged between 25 and 44 forming the biggest group classified as bankrupt.

They constituted almost 60% of the 94,408 cases reported from 2013 to August, according to the Insolvency Department.

Director-general Datuk Abdul Rahman Putra Taha said there were multiple factors that contributed to the trend, but singled out that many of them just wanted to “start their own life”.

“When they start their own lives, they are not financially stable. Some want to get married, but if the in-laws ask for hantaran gifts such as cars or a house, they need the money.

“Their pay can be considered low but they need expensive gifts. Where else can they go other than applying for personal loans?” he said in an interview recently.

Abdul Rahman also listed the top four reasons why a borrower was declared a bankrupt.

“Car loans took up 26.63%, personal loans (25.48%), housing loans (16.87%), and business loans (10.24%),” he said.

He revealed that the total number of people declared bankrupt from 2013 stood at 296,712 as of August, with Selangor having the most at 72,114, followed by the Federal Territories (46,377), Johor Baru (41,179) and Penang (22,136).

He urged the public to manage their finances prudently to ensure they would not be burdened by debt.

At the same time, Abdul Rahman said Bank Negara Malaysia (BNM) was making huge efforts to ensure it would not be so easy for the young to obtain credit cards.

In response, he said the department was committed to ensuring that the Government meets its target, especially with the Voluntary Arrangement under the Insolvency Act 1967.

Almost 58,000 bankrupts have been cleared or had their bankruptcy annulled by the courts in about the last five years, marking the first phase of the Government’s efforts to reduce bankruptcy cases following amendments to several bankruptcy laws.

From 2013 to August 2017, the courts have cleared 1,356 cases while another 11,627 cases have been terminated upon annulment of the bankruptcy order.

A total of 44,950 cases were discharged via Insolvency Certificate from the director-general.

However, the Government is pushing to slash the number of people being declared bankrupt to just about 4,000 to 5,000 cases per year.

“The enforcement of the newly amended bankruptcy law began this year. If they meet our criteria, qualified borrowers will be automatically discharged as bankrupts three years from the date of filing of the Statement of Affairs (Penyata Hal Ehwal),” said Abdul Rahman

Under the amended laws, someone at risk of being declared a bankrupt can settle his debt without bankruptcy proceedings with a voluntary agreement.

“Our intention is to ensure that borrowers will be able to pay back their loans without undue suffering and creditors will get their money back, too.”

He said debtors must adhere to the agreed sum of contribution paid to the creditors and they must also file their pay and expenses slip statement every six months throughout the three-year period.

“As long as they fulfil the payment within the period, we will release their names,” said Abdul Rahman.

Under the new amendments of the Bankruptcy Act 1967, the Government has introduced a rescue mechanism with a single bankruptcy order to replace the receiving order and adjudication order from the courts as practised previously.

“This move ensures that creditors are also protected under the amended laws,” he said.

The Act has also paved the way for the setting up of the Insolvency Assistance Fund and a release from bankruptcy without objection by the creditors for certain groups of people.

These include social guarantors made bankrupt under the Bankruptcy Act 1967, those who have died, those categorised as people with disabilities (OKU) by the Welfare Department and those certified by government medical officers as suffering from chronic or serious diseases.

The Star Malaysia by RAHIMY RAHIM rahimyr@thestar.com.my

Related Links:
Naivete and peer pressure lead to bankruptcy
No excuses for bad decisions, says Chong

High life of the young, carefree and broke Malaysians hit a new low

Younger set not living within their means and are bankrupt before they are 30

 

"When they start their own lives, they are not financially stable. Some want to get married." - Datuk Abdul Rahman Putra Taha

They are young and carefree to the point of being careles, and have expensive tastes. Branded handbags, holidays to exotic places, fancy cars and lavish weddings all lead them into huge debts. By the age of 30, they are bankrupt. Some as young as 25 are among the shocking 60% of the 94,400 people declared bankrupt in the last four years.

PETALING JAYA: They lived the fast life, a life of Pradas and Guccis. When the cash is out, they max out on their credit cards.

Some even go as far as taking up personal loans to finance overseas trips, buying the latest expensive gadgets and holding lavish weddings.

And before they even turn 30, they are bankrupt.

Malaysia’s youth are seeing a worrying trend with those aged between 25 and 44 forming the biggest group classified as bankrupt.

They constituted almost 60% of the 94,408 cases reported from 2013 to August, according to the Insolvency Department.

Director-general Datuk Abdul Rahman Putra Taha said there were multiple factors that contributed to the trend, but singled out that many of them just wanted to “start their own life”.

“When they start their own lives, they are not financially stable. Some want to get married, but if the in-laws ask for hantaran gifts such as cars or a house, they need the money.

“Their pay can be considered low but they need expensive gifts. Where else can they go other than applying for personal loans?” he said in an interview recently.

Abdul Rahman also listed the top four reasons why a borrower was declared a bankrupt.

“Car loans took up 26.63%, personal loans (25.48%), housing loans (16.87%), and business loans (10.24%),” he said.

He revealed that the total number of people declared bankrupt from 2013 stood at 296,712 as of August, with Selangor having the most at 72,114, followed by the Federal Territories (46,377), Johor Baru (41,179) and Penang (22,136).

He urged the public to manage their finances prudently to ensure they would not be burdened by debt.

At the same time, Abdul Rahman said Bank Negara Malaysia (BNM) was making huge efforts to ensure it would not be so easy for the young to obtain credit cards.

In response, he said the department was committed to ensuring that the Government meets its target, especially with the Voluntary Arrangement under the Insolvency Act 1967.

Almost 58,000 bankrupts have been cleared or had their bankruptcy annulled by the courts in about the last five years, marking the first phase of the Government’s efforts to reduce bankruptcy cases following amendments to several bankruptcy laws.

From 2013 to August 2017, the courts have cleared 1,356 cases while another 11,627 cases have been terminated upon annulment of the bankruptcy order.

A total of 44,950 cases were discharged via Insolvency Certificate from the director-general.

However, the Government is pushing to slash the number of people being declared bankrupt to just about 4,000 to 5,000 cases per year.

“The enforcement of the newly amended bankruptcy law began this year. If they meet our criteria, qualified borrowers will be automatically discharged as bankrupts three years from the date of filing of the Statement of Affairs (Penyata Hal Ehwal),” said Abdul Rahman

Under the amended laws, someone at risk of being declared a bankrupt can settle his debt without bankruptcy proceedings with a voluntary agreement.

“Our intention is to ensure that borrowers will be able to pay back their loans without undue suffering and creditors will get their money back, too.”

He said debtors must adhere to the agreed sum of contribution paid to the creditors and they must also file their pay and expenses slip statement every six months throughout the three-year period.

“As long as they fulfil the payment within the period, we will release their names,” said Abdul Rahman.

Under the new amendments of the Bankruptcy Act 1967, the Government has introduced a rescue mechanism with a single bankruptcy order to replace the receiving order and adjudication order from the courts as practised previously.

“This move ensures that creditors are also protected under the amended laws,” he said.

The Act has also paved the way for the setting up of the Insolvency Assistance Fund and a release from bankruptcy without objection by the creditors for certain groups of people.

These include social guarantors made bankrupt under the Bankruptcy Act 1967, those who have died, those categorised as people with disabilities (OKU) by the Welfare Department and those certified by government medical officers as suffering from chronic or serious diseases.

The Star Malaysia by RAHIMY RAHIM rahimyr@thestar.com.my

Related Links:
Naivete and peer pressure lead to bankruptcy
No excuses for bad decisions, says Chong

Healing through hiking mountains

The arduous Pacific Crest Trails offered the author of The Girl In The Woods the chance to take back control of her life after being raped.

The first time I heard of the Pacific Crest Trail was at the recent George Town Literary Festival, when a friend expressed interest in hiking it. Stretching across mountains running along the western coast of the United States, it is a challenging trail that should be attempted by only the hardiest of hikers.

My own experience with hiking is limited to beginner trails in national parks and forest reserves. Hiking is fun, but I know well enough of its dangers – years ago, another friend of mine had gone hiking and disappeared. The friend at the festival who wanted to hike the Pacific Crest is a man in his 30s. In Girl In The Woods, the hiker, who goes by the name “Wild Child”, is a young woman of 19 and a survivor of rape.

Wild Child grew up as Deborah “Debby” Parker, a sheltered child who lived under the wing of her protective mother and influential, high-achieving brother. On the second night of her stay at college, she was raped.

The emotional and psychological effects of the rape, compounded with the lack of empathy from her college and her family, became the catalyst for her decision to hike the entire Pacific Crest Trail.

For Wild Child, the hike was both a method of escaping a society that made her feel vulnerable and of confronting danger and, through that, regaining her sense of control and trust.

Author: Aspen Matis Publisher : William Morrow/HarperCollins, non-fictionNature and the wilderness is often portrayed as a place of peace and isolation, but any illusion that the wilderness of the Pacific Crest Trail is isolated and peaceful is proven false in Wild Child’s experiences along the trail. The Pacific Crest Trail hiking line is a male-dominated environment, peopled with strange men and women, and offers very little protection from physical or verbal violence stemming from racism, misogyny, or sheer sadism.

Following Wild Child’s journey along the trail brings us to very close intimacy with her personality, her decisions, and her pain. Although survivor accounts and articles on the way rape affects psychology exist in abundance, Girl In The Woods vividly shows how rape shatters one’s sense of safety, trust, and control over one’s body and environment; more importantly, the book allows readers to witness the challenges of regaining that lost sense of security and control.

As we follow her journey, we are also made to confront rape culture – both when it is perpetrated by the people around Wild Child and when we are tempted to criticise her lack of self-preservation. Wild Child exposes herself (at times literally) to strangers and dangers, and readers may find themselves finding fault and blaming her for “tempting rape”. We are made to confront and encouraged to unshackle from our own preconceived, perhaps subconscious, perpetuation of victim blaming and rape culture.

The topic of rape may frighten some readers away from the book, but the harsh desert beauty of the Pacific Crest Trail and Wild Child’s own personal resilience tames its violence, so the experience of reading the book is not unpleasant.

Girl In The Woods is a powerful testament of nature’s healing qualities and an intimate examination of surviving rape.

It is an elegant narrative of loss of innocence, regaining of strength, and finding love and self-acceptance.

It is not merely an account of a survivor but an adventure book, a record of a coming-of-age, and a story of personal growth as the protagonist transforms from the insecure Debby Parker to Wild Child the hiker, before finally emerging as Aspen Matis (the name that she answers to now, and the pseudonym used to pen the book), a fully fledged survivor.

The only arguable weakness of Girl In The Woods is that the description of the landscape along the Pacific Crest Trail is rather sparse.

Perhaps this was omitted because it was unnecessary to the narrative, but I would have appreciated more details on the desert, mountains and forests that were traversed.

I tend to notice the beauty of natural landscapes when I travel, and keenly felt the omission of detailed descriptions on the beautiful American rural landscape.

But this is a minor complaint in an otherwise outstanding memoir.


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