PUTRAJAYA: The corporatisation of the Insolvency Department may take place as early as next year.
Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Said said the department would conduct a feasibility study for this purpose.
"The proposed corporatisation (of the department) is in line with global practices for developed countries," she said in her speech at the Insolvency Department's 100th year celebration here today.
She said it was aimed at further enhancing its role in the administration of bankrupts in the country.
She said insolvency involves a long period, causing burdens to people and companies, as well as the government, as the group was unable to contribute to the country's economic development.
In addressing the issue of bankruptcy, especially among the younger generation, Prime Minister Datuk Seri Anwar Ibrahim had implemented the "Second Chance" policy to allow individuals to rebuild their lives, she said.
"The Second Chance agenda does not end in discharging bankrupts.
"The policy also emphasises effective insolvency administration through management and liquidation of assets, particularly those involving companies that are going through the process."
This, she said, was to ensure that the assets could be liquidated efficiently for the purpose of settling the debts and the revenue generated could reenter the country's economic cycle.
In line with the policy, she said, the Insolvency Act 1967 was amended to enhance the administration in releasing individuals from bankruptcy and the use of technology and digitalisation.
"In this regard, the government hopes that the creditors understand its aspirations and good intentions.
"Bankrupt individuals who are discharged have long been burdened with bankruptcy and their cases have been administered for an extended period or those involving bad debts."