KUALA LUMPUR, Nov 7 — A total of 3,602 civil servants were declared bankrupt between 2020 and September 2024, according to the Insolvency Department.
The News Strait Times reported that the highest number of cases occurred in 2020, with 1,009 civil servants declared bankrupt, followed by 678 cases in 2021, 621 cases in 2022, and 628 cases in 2023.
In the first nine months of 2024 alone, 666 cases were recorded.
Minister Datuk Seri Azalina Othman Said, in a written Parliamentary reply, stated that all heads of government ministries and departments must assess the ability of their subordinates to repay debts.
The news report further stated that she noted that salary deductions are permitted under the Rules on Maintaining Living Standards and Serious Financial Indebtedness, but the net income of a public servant must not fall below 40% of their monthly salary, except in cases involving housing and education loans.
Azalina added that Integrity Units in all ministries and departments are responsible for monitoring civil servants with significant levels of debt.
Those with high debt levels may face reprimands but will also be provided with counselling to help them manage their finances more effectively.
"The government will continue to monitor high levels of debt among civil servants through the Organisational Anti-Corruption Plan (OACP)," she was quoted as saying.
Azalina explained that the four-year OACP outlines preventive, educational, and enforcement measures to strengthen integrity and transparency among civil servants.
She was responding to a question from Datuk Seri Richard Riot Anak Jaem (GPS-Serian) regarding the government's efforts to address bankruptcies among civil servants.
The Minister also highlighted that the Insolvency Department regularly conducts awareness programmes and offers counselling to assist civil servants in better managing thier finances.
