In his Budget 2023 presentation today, Prime Minister Datuk Seri Anwar Ibrahim has proposed for the Insolvency Act 1967 to be amended, enabling the automatic discharge of bankruptcy cases for selected groups. With this, it is expected to make the process easier and more efficient for affected individuals in lifting their bankruptcy status.

Additionally, the prime minister said that while waiting for the Insolvency Act to be amended, minor insolvency cases with debts amounting to less than RM50,000 – and that adhere to certain conditions – will be discharged immediately. This is expected to take effect starting from 1 March 2023, with the conditions to be announced soon.

“As of January, there are more than 260,000 bankruptcy cases recorded, the majority involving young Malays who have the potential to contribute to the economy,” Datuk Seri Anwar noted during the re-tabling of the national budget, and stressed that these individuals deserve a second chance. If approved, the amendments to the Insolvency Act is expected to release 130,000 people from their bankruptcy status.

For context, Malaysia’s bankruptcy threshold is currently set at RM100,000, which was raised from RM50,000 back in 2020 to help the public cope with financial difficulties during the Covid-19 pandemic.

• TAGS:
• Bankrupt Individuals
• Bankruptcy
• Budget 2023
• Budget 2023 Re-Tabling
• Insolvency Act 1967 (Act 360)