KUALA LUMPUR: In light of the rise in bankruptcy cases, especially among youths in Malaysia, Prime Minister Datuk Seri Ismail Sabri Yaakob said the government will review the country's bankruptcy threshold.
Expressing his worry over the spike in the number of youths being declared bankrupt as of this year, he said Putrajaya may reintroduce its previous method in helping the younger generation.
He said this in reference to the government's previous action in 2020 during the Covid-19 pandemic, where the Malaysian Department of Insolvency (MDI) increased the bankruptcy threshold to RM100,000 from RM50,000.
"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," he said in his speech at the closing ceremony of the 2022 Barisan Nasional (BN) Youth Job Fair at the Kuala Lumpur World Trade Centre (KLWTC), here, today.
In May this year, the MDI revealed that there are 287,411 people in the country who have been declared bankrupt as of March this year.
According to the MDI, most of them were forced to declare bankruptcy for failing to clear loan debts because of insufficient funds.
The MDI said Selangor recorded the highest number of bankruptcy cases, followed by Kuala Lumpur with 71,659 and 45,630 reported, respectively.
Their statistics showed that the most number of bankruptcy cases involved private sector workers and businessmen, between the ages of 35 and 44.
As such, the prime minister urged employers and companies to create more job opportunities, especially for the younger generation, to prevent them from becoming a victim of bankruptcy.
"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."