Malaysian bankruptcies surge 14-fold

Malaysian bankruptcies surge 14-fold

KUALA LUMPUR (AFP): Malaysia's economic crisis prompted a 14-
fold surge in bankruptcies to 6,578 in the first 11 months of
1997, up from 439 for the same period a year earlier, a report
said yesterday.

Public trustee officer Idris Othman was quoted as saying that
most cases occurred during August, October and November involving
708, 748 and 707 cases respectively.

The majority declared bankrupt were businessmen and those that
stood as guarantor to individual and corporate loans, Idris told
the Malay-language newspaper Berita Minggu.

"Other reasons included the share market speculation, failure
to clear their credit card debts, gambling, natural disaster as
well as failure to service their housing and car loans," he said.

Out of the 6,578 cases, some 2,828 people have been acquitted
by the court, he added.

Those declared bankrupt are barred from involvement in any
businesses, cannot be appointed a company director or travel
overseas except with the court's permission.

They cannot own property and are required to declare their
income and expenditure every half year.

Idris reminded businessmen to be careful in managing their
finances and servicing their banks loans to avoid insolvency.

A total of 537 companies have been declared insolvent during
the recessionary period in 1988 and another 622 the following
year, he said, adding that 61,511 bankruptcies have been recorded
since 1948.