Abdul Karim (centre) speaks to the press.
KUCHING (June 28): Young people should practise financial discipline to avoid falling into the trap of bankruptcy, advised Sarawak Youth, Sports and Entrepreneur Development Minister Dato Sri Abdul Karim Rahman Hamzah.
Abdul Karim said the youth of today must balance their expenses with their income, as well as being realistic with their existing financial situation and not racking up debts at an early age.
“I can tell you when I first started working, my dream car was Proton Saga because I know I can only afford that car (at that moment),” said Abdul Karim during a press conference announcing the Sarawak Hornbill Team Cup 2023 bowling competition at Pandelela Rinong aquatic centre in Petra Jaya yesterday.
Abdul Karim was asked to comment on the recent news highlighting that 31,140 youths at the age of 35 and below have been declared bankrupt since 2014.
The minister also warned the youth that many restrictions will be imposed on them if they have been declared as bankrupt by the authorities.
“When a person has been declared bankrupt, many facilities will be withdrawn. They cannot leave the country and travelling will be restricted. Applying for loan will be difficult and they are also not allowed to hold any position in an association. There are a lot of things that will make your life miserable,” he said.
Although the bankruptcy threshold has been increased to RM100,000, Abdul Karim warned the youth against taking advantage of the higher limit to take on more debt to finance their living.