27th June 2022 - 2 min read
Prime Minister Datuk Seri Ismail Sabri Yaakob has said that the government will review the country’s bankruptcy threshold, following the worrying spike in bankruptcy cases being reported as of this year. This is especially the case among Malaysian youths.
According to the prime minister, the government may reintroduce its previous approach of increasing the bankruptcy threshold to help alleviate this situation. For context, the Malaysian Department of Insolvency (MDI) had increased the bankruptcy threshold once back in 2020 – from RM50,000 to RM100,000 – to help the public cope with financial difficulties during the Covid-19 pandemic.
“The government previously increased the threshold during the pandemic, and legal actions (against defaulters) were delayed. Looking at how things are now, the threshold will be reviewed, and God willing, I will discuss this with the Minister in the Prime Minister’s Department (Parliament and Law) to look into the relevant Act. I will also meet the Bank Negara governor to see what can be done from the legal perspective,” said Datuk Seri Ismail Sabri.
Last month, the MDI revealed that there were as many as 287,411 bankrupt individuals in the country as of March 2022. Most were forced to declare bankruptcy due to their inability to clear loan debts. Additionally, most of the bankrupt cases involved private sector workers and businessmen, aged between 35 and 44 years old.
“I am worried when I look at the figure, and I am even more afraid of the possibility that it can increase, which is why this government will do its best to serve the youth. Believe me, the youth agenda is our priority,” said the prime minister, who also urged employers and companies to create more job opportunities for the younger generation to prevent early bankruptcy.
(Source: New Straits Times)
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