KUALA LUMPUR: More than 11,000 people were declared bankrupt in Malaysia since the pandemic struck in March 2020.
Minister in the Prime Minister's Department(Parliament & Law), Datuk Seri Dr Wan Junaidi Tuanku Jaafar told the Dewan Rakyat that the Insolvency Department recorded 11,207 cases of bankruptcy between March 2020 and October 2021.
He said there were 6,344 cases recorded between March to Dec 2020 and 4,863 cases recorded between Jan to Sept 2021.
Wan Junaidi said that it takes around a year from default in payments to see the true effect of Covid-19 on debtors as their lenders can only petition for bankruptcy proceedings/filings to take place six months after the person is found to be insolvent.
He said default on payments were likely to have occurred after the six months moratorium for loans between April 2020 and Sept 2020 ended, or after the six month targeted moratorium ended in March 2021, or after the additional six-month moratorium that was given on application from July ended.
"As such the department would look through bankruptcy cases that are filed in these periods and would take the appropriate administrative action," he said in a written parliamentary reply to Dr Lee Boon Chye(Gopeng-PH) on the number of Malaysians who were declared bankrupt since the pandemic struck.