'CLICK TO ENLARGE'PETALING JAYA: The sharp rise in bankruptcies involving corporate guarantors over the past four years among SMEs is partly due to financial stress from the pande­mic, say industry groups. Banks then pursue the guarantor, escalating the matter into personal legal and financial jeopar­dy. The data, Ng pointed out, also underscore a broader structural issue: heavy reliance on personal guarantees. Once entrepreneurs sign perso­nal guarantees, he said “any prolonged business stress can quickly become a personal financial crisis”. Banks, claimed Chin, would routinely insist on personal gua­rantees even for limited liability companies.

Source: The Star April 06, 2026 00:41 UTC