Speaking in Pekan, Pahang yesterday, he said even civil servants entrusted with managing “thousands of ringgit in government funds” were unable to manage their own funds.

“We should be living within our means. If we can use a Xiaomi phone, there is no need for an iPhone.

“Some civil servants like to look lavish. For example, if they can afford a Perodua Myvi, they should not try to drive a Toyota Vios,” Berita Harian quoted him as saying.

Shamsul said the Public Officers (Conduct and Discipline) Regulations stipulate that loans must make up 40% of monthly emoluments at most, except for performing the haj and making house purchases.

“If this regulation is followed, the risk of bankruptcy can be controlled.

“Heads of department have also been ordered to send personnel with financial issues for counselling with the Credit Counselling and Debt Management Agency,” he said.

Yesterday, insolvency department director-general Bakri Majid said there were cases in which civil servants were declared bankrupt as a result of excessive bank loans.

“We have previously handled a case where a civil servant borrowed up to RM700,000 and was later declared bankrupt,” he said.