KUALA LUMPUR: The number of bankrupt youths had shown a downward trend last year, the Dewan Rakyat heard today.
Deputy Finance Minister Datuk Seri Ahmad Maslan said youth bankruptcy, those aged below 35, had reduced from 22.5 per cent between 2017 and 2021, to 13.5 per cent in 2022.
"Meanwhile, the bankruptcy cases in the country have steadily reduced from 19,558 individuals per year since 2016, to 5,695 individuals as of December 2022," he said in Dewan Rakyat, today.
Ahmad said this in response to a question from Datuk Shahar Abdullah (Barisan Nasional-Paya Besar) on the government's measure to assist bankrupt individuals.
He added that the amendment of the Insolvency Act 1967 would also help those declared bankrupt.
"There are several procedures that must be taken into account by financial institutions to declare bankruptcy on individuals, (and) declaring bankruptcy on them is the final resort.
"Hence, the amendment of the Act will help many of those who are declared bankrupt," he said.
On Feb 24, Prime Minister Datuk Seri Anwar Ibrahim said the government was looking at giving bankrupts a second chance to rebuild their lives.
Anwar said bankrupts whose debts were under RM50,000 could be released from bankruptcy status from March 1.
The government would also amend the Insolvency Act 1967 to enable bankrupts to be freed from bankruptcy automatically soon, he said.
He added that an estimation of 130,000 people would be freed from bankruptcy status when the amendments are passed.