JOHOR BAHRU, April 23 — Failure to repay personal loans has become the primary driver of bankruptcies in Malaysia, accounting for nearly half of the 31,517 cases recorded over the past five years, Economy Minister Akmal Nasrullah Mohd Nasir said.Highlighting the alarming trend, he noted that personal loans were responsible for 14,582 cases — or 46 per cent — of all bankruptcies between 2021 and March 2026.A significant portion of those affected are also young adults, with 4,704 individuals aged 34 and below declared bankrupt due to personal loan defaults.“There is an urgent need to increase financial awareness,” Akmal told reporters after officiating the Insolvency Department’s ‘Second Chance Policy Programme’ here today.The programme, he explained, is a government initiative to provide a pathway for bankrupt individuals to be discharged and rebuild their financial lives.“The programme is a continuation of our policy to give a second chance to those who have actually been declared bankrupt,” Akmal said.He explained that the program’s initial phase will focus on four key groups: single parents, borrowers from micro, small and medium enterprises (MSMEs), victims of financial fraud, and buyers of abandoned housing projects.Insolvency Department Director-General Datuk Ishak Bakri, who was also present, said the programme has seen early interest in Johor.Since its launch on February 16, the state has received 45 applications under the four priority categories. Of these, 31 were from single parents, 10 from MSME borrowers, three from buyers of abandoned housing projects, and one from a fraud victim.“This programme is a platform to understand the reality of debt issues and how the country provides a more just and humane solution for those affected,” Ishak said.