Amendments to Malaysian Insolvency Act to Be Tabled Next Month

The proposed amendments to the Malaysian Insolvency Act 1967, as announced in the revised 2023 Budget, will be tabled in Parliament next month, the New Straits Times reported. Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said the amendments to the Act would improve the administration and management of the country's bankruptcy system. Azalina said the government estimated at least 130,000 people of the total 260,000 bankruptcy cases recorded as of early this year would be freed from bankruptcy when the amendments were passed. "We are targeting at least 130,000 people, who are mostly youths and Malays, to be freed from bankruptcy when the amendments are passed," she said."We had drafted the amendments earlier. However, we will draft another round of amendments because releasing the bankrupts must be done carefully since it will affect the credit rating at Bank Negara." When tabling the 2023 Budget last month, Prime Minister Datuk Seri Anwar Ibrahim said the government would amend the Act to enable bankrupts to be freed from bankruptcy soon. As of January this year, Anwar said there were more than 260,000 bankruptcy cases, with the majority of them Malays, who could contribute to the nation's economy. Read more.