Determinants Influencing The Spike in Malaysian Youth Bankruptcy


  • Nur Syakirah Ahmad Suhami Universiti Sains Islam Malaysia
  • Sharifah Fairuz Syed Mohamad Universiti Sains Islam Malaysia



Youth, Bankruptcy, Education, Credit Card, Medical Expenses


This research intends to identify the factors that have contributed to the recent increase in youth bankruptcy in Malaysia. This research may also provide beneficial and theoretical evidence and information to society, such as the government, family, youth, and future researchers, considering that young people are the primary backbone for national development. Hence this research comes with two objectives: to identify the relationship between sociodemographic (education level and occupation) factors and to determine the relationship between usage of credit cards, materialism and medical expenses to the increase in the number of young people declaring bankruptcy. Sociodemographic information about the respondents who filed for bankruptcy was acquired from the Malaysia Department of Insolvency (MDI) in Kuala Lumpur and Negeri Sembilan branches. The questionnaire was constructed using primary data and distributed to 119 people who had filed for bankruptcy with the Malaysian Department of Insolvency (MDI). Multiple Linear Regression method is used to examine the relationship. Education, occupation, credit card usage, materialism, and medical expenses are the five independent variables used to determine youth bankruptcy. As a result, three out of five turn out to be significant in explaining youth bankruptcy which are education, credit card usage and medical expenses. A great deal of misconception has been practiced by many youths nowadays, seeing as they do not acknowledge how severe the problem is and what the causal effects will be, due to their inattention to financial management.


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How to Cite

Nur Syakirah Ahmad Suhami, & Sharifah Fairuz Syed Mohamad. (2023). Determinants Influencing The Spike in Malaysian Youth Bankruptcy. AZKA International Journal of Zakat & Social Finance, 4(2), 101-122.



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