PUTRAJAYA: A total of 142,510 people are discharged from bankruptcy following amendments to the insolvency law.
Prime Minister Datuk Seri Anwar Ibrahim said this gives them a new lease of life,
"Follow-up measures for these individuals are just as important after getting a second chance and breaking free from bankruptcy," he said.
"This means some 140,000 families have been saved and can live comfortably now.
"In the meantime, we have (government assistance including) Rahmah cash aid, with RM10 billion allocated for nine million people," he said in his speech at the Malaysian Department of Insolvency's 100th year celebration here today.
He said the amendments to the Insolvency Act was aimed at strengthening the law, while networking among ministries and departments would provide business opportunities to those who wish to improve their economy, including through initiatives by National Entrepreneurial Group Economic Fund (Tekun Nasional), Majlis Amanah Rakyat or Perbadanan Usahawan Nasional Bhd, among others.
He said people fell into bankruptcy due to different factors, including recklessness, business mistakes, slow economy and the Covid-19 pandemic.
"It is our duty to drive the economy and give those affected a second chance.
"Proactive measures are needed to ensure that Malaysia remains competitive and prosper."
Anwar also expressed his appreciation to MDI's staff who exceeded the initial target of discharging 130,000 bankrupt individuals following the law revision.
"We are studying the remuneration system recalibration, (and) the role of the Insolvency Department would definitely be given special attention due to the encouraging performance."
Meanwhile, Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Said said the "second chance" agenda also emphasised on effective insolvency administration through the management of assets, including properties of companies that went into liquidation.
For this purpose, the government, through MDI, had enhanced strategic cooperation with other agencies and private sector, in particular Insolvency Practitioners Association of Malaysia, she said.
"In line with the technology modernisation and latest trends, the development of digitalised systems plays a vital role in operational implementation," she said.
The amended Insolvency Act was gazetted on Aug 11 last year and came into force on Oct 6.
Key amendments on the Act include relaxing the conditions for discharge, with Section 33C providing for automatic discharge within three to five years from the date a bankrupt's submission of his or her statement of affairs.
Section 33C applies retrospectively, covering individuals who had been formally declared bankrupt before the passing of this Act.