Bankruptcy Risk among Gen Y in Klang Valley

  • Chong Li Syan
  • Noor Ashikin Mohd Rom
  • Nurbani Md. Hassan


Bankruptcies among the young generation have huge impact on the country growth and economy, as they are country future talent in stimulating the economy of the country. The purpose of this paper is to investigate the factors that influencing bankruptcy risk among Generation Y in Klang Valley, Malaysia. The independent variables for this study included spending behaviour, credit card usage and financial commitment. This is a quantitative study using probability sampling method and 209 respondents have given their feedbacks via online form. The findings revealed that that there was relationship between spending behaviour, credit card usage and financial commitment with bankruptcy risk. The factors studied in this paper are highly related to the respondent's personal perception and their own point of view. This research ignores external issues such as economics condition or political issue. The results could be used as a guide for the government, financial institutions and public on the major factors that contribute towards bankruptcy risk among Generation Y.  Hence, financial literacy among citizen especially young generation is highly desirable to curb the bankruptcy problem before it becoming a disease.


Alam, S. S., Rahim, R. A., Haq, M. R., & Khan, M. A. R. (2014). What Influence Credit
Card Debts in Young Consumers in Malaysia. Journal of Public Administration, Finance and Law, (6), 106-16.
Arabzadeh, E., & Aghaeian, S. (2015). The relationship of usages and Management of credit cards on lifestyles and purchasing behaviours of Cardholders. International Journal of Management Research and Business Strategy, 4(3), 245-256.
Baharom, H. (2017). Column - Bankruptcy and Debt. Retrieved from on December 2019.
Department of Statistics Malaysia (2020). Retrieve at on 2nd September 2020.
Diana-Rose, F., & Zariyawati, M. A. (2013). Factors Affecting Youth Bankcruptcy in Malaysia, SAGE Publication
Hilmy, H., Mohd, Z., Shaliza, A., & A Fahami, N. (2013). Factors affecting bankruptcy: the case of Malaysia. International Journal of Undergraduates Studies, 2(3), 4-8.
Idris, F. H., Krishnan, K. S. D., & Azmi, N. (2013). Relationship between financial literacy and financial distress among youths in Malaysia-An empirical study. Malaysian Journal of Society and space, 9(4), 106-117.
Idris, N. H., Yazid, Z. A., Faique, F. A., Daud, S., Ismail, S., Bakri, M. H., & Taib, N. M. (2016). Financial Literacy and Debt Burden among Malay Youth Workers in Malaysia. Advanced Science Letters, 22(12), 4288-4292.
Juen, T. T., Sabri Mohamad, F., Abd Rahim, H., Othman, M. A., Muhammad, A., & Afida, M. (2013). The Influence of Financial Knowledge, Financial Practices and Self-Esteem on Money Management Skills of Young Adults‖. Malaysian Journal of Youth Studies, 24-37.
Luckett, C. A. (1988). Personal bankruptcies. Fed. Res. Bull., 74, 591.
Malaysian Department of Insolvency (2020). Retrieve at on 18th August 2020.
Nizar, N. (2015). Determinants of Malaysia household debt: macroeconomic perspective. In Proceeding-Kuala Lumpur International Business, Economics and Law Conference (Vol. 1, pp. 97-107).
Noordin, N., Zakaria, Z., Sawal, M. Z. H. M., Ngah, K., & Hussin, Z. H. (2012). Bankruptcy among young executives in Malaysia. Insight, 28, 132-136.
Othman, M. A., Rahim, H. A., Sabri, M. F. (2015). Differences in Financial Information and Financial Status among Malaysian Bankrupts. Proceedings of the Australasian Conference on Business and Social Sciences, 525- 531.
Omar, N. A., Rahim, R. A., Wel, C. A. C., & Alam, S. S. (2014). Compulsive buying and credit card misuse among credit card holders: The roles of self-esteem, materialism, impulsive buying and budget constraint. Intangible Capital, 10(1), 52-74.
Rajna, A., & Anthony, P. (2011). Knowledge, Attitude, Practice and Satisfaction on Personal Financial Management among the Medical Practitioners in the Public and Private Medical Services in Malaysia (Doctoral dissertation, Phd Thesis, Universiti Kebangsaan Malaysia).
Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. Journal of Consumer Affairs, 44(2), 276-295.
Selvanathan, M., Krisnan, U. D., & Wen, W. C. (2016). Factors Effecting Towards Personal Bankruptcy among Residents: Case Study in Klang Valley, Malaysia. International Journal of Human Resource Studies, 6(3), 98-109.
Zaminor, Z., Azila, J., Siti Zamanira, M.Z., & Che Rusuli, M.S. (2016). Consumers' credit card bankruptcy: Cause and effect. 10. 4332-4335.
Zamzamir, Z., Jaini, A., & Zaib, S. Z. M. (2015). Bankruptcy among young users of credit card in Malaysia: a case study of RHB islamic (Menara Yayasan Tun Razak) bank customers.
Zhu, N. (2011). Household consumption and personal bankruptcy. The Journal of Legal Studies, 40(1), 1-37.
How to Cite
LI SYAN, Chong; MOHD ROM, Noor Ashikin; MD. HASSAN, Nurbani. Bankruptcy Risk among Gen Y in Klang Valley. International Journal of Advanced Research in Education and Society, [S.l.], v. 2, n. 3, p. 32-40, nov. 2020. ISSN 2682-8138. Available at: <>. Date accessed: 22 june 2024.