#SHOWBIZ: Stars in the red: 29 Malaysian celebrities file for bankruptcy to clear debts | New Straits Times
KUALA LUMPUR: Behind the glitz, glamour, and flashing cameras of the local entertainment scene lies a far starker reality: 29 celebrities are currently listed as bankrupt after accumulating debt running into millions of ringgit. According to Insolvency Department bankruptcy division director Fajrul Shihar Abu Samah, the list includes household names, veteran actors, former Hero Remaja contestants, and multi-award-winning legends who remain active in the entertainment industry today. Unwilling to endure relentless pressure from financial institutions, these showbiz figures have chosen to turn themselves in to the department to manage their liabilities systematically. Fajrul Shihar revealed that out of 66 stars recorded on the insolvency registry since 2012, more than half have successfully discharged their bankrupt status following financial counselling and advisory assistance.
"Some came directly to us because they could no longer bear being hounded by financial institutions," Fajrul Shihar said in a Kosmo report today. What To Read Next "When they hand themselves over, it becomes easier for us to administer their debts, as our role at the Insolvency Department is to act as a protective mediator between debtors and creditors." × 00:00 01:00 Tonton Non Stop, On Top! Player Insights Video- Viewport / Frames- Audio- Buffer Video / Audio- Time- Stream- Player version- Bitmovin PlayerAdaptive Streaming for the WebPlayer: 8.269.0UI: 4.17.0 Show Player Insights Copy link at current time Video Qualityauto Speednormal Audio Track- Audio Qualityauto Subtitlesoff (0) BackReset Font sizedefault Font styledefault Font familydefault Font colordefault Font opacitydefault Character edgedefault Character edge colordefault Background colordefault Background opacitydefault Window colordefault Window opacitydefault She added that while financial mismanagement, personal loans, and high-ticket asset acquisitions are the primary drivers of these financial woes, many stars are eager to clear their names due to their public profiles. "If I were to list their names one by one, almost everyone out there would recognise them," she noted.
"What matters most is that they are actively trying to pay off what they owe. Many are even willing to pay extra whenever they land more gigs. That level of commitment makes administering their debts much smoother. Once listed as bankrupt, banks no longer pursue them directly; instead, they deal through us." The broader national landscape reflects a similar struggle.
Between 2022 and June this year, a total of 26,782 individuals were declared bankrupt across Malaysia. Selangor topped the list with 6,212 cases, followed by the Federal Territories (3,618), Johor (2,301), Penang (1,527), and Kedah (1,663), while Perlis recorded the lowest with 193 cases. Personal loans remained the leading cause of insolvency nationwide, accounting for 11,999 cases or 44.8 per cent of the total, followed by business loans (5,166), housing loans (2,515), and vehicle hire-purchase agreements (2,111). Insolvency Department director-general Datuk Ishak Bakri highlighted that youth under 30 make up nearly 15 per cent of all bankruptcy cases over the past five years.
He attributed the rise among young adults to poor long-term financial planning fuelled by "Fear of Missing Out" (FOMO) and "You Only Live Once" (YOLO) mindsets, alongside social media pressure to maintain influencer-style lavish lifestyles.