Civil servants who were declared bankrupt increased by more than 100 percent last year as 3,000 civil servants were declared bankrupt in 2010 compared with 1,086 in 2009.
Congress of Unions of Employees in the Public and Civil Services (Cuepacs) president Omar Osman said the bulk of the bankrupts were from the Grade 1 to Grade 40 category, accounting to about 80 percent, and mainly comprising men.
“Most of them were due to default in car loans, maybe it is because their salaryis low but already have other commitments and loans. So, when they buy cars, they face problems in paying,” he told reporters after a Labour Day talk at Universiti Malaysia Sabah (UMS), yesterday.
Omar had earlier in his speech said Cuepacs would continue to demand for new provisions to ensure the welfare of civil servants but the habit to overspend must be cautioned.
He added that since the current increase in prices of essential goods added to the burden of civil servants, the Congress had urged the government to review the salary and other allowances. Sabah and Sarawak are also facing a similar predicament due to the rising cost of living, he said.