The government has proposed to amend the Insolvency Act 1967 to include, among others, improvements to the automatic bankruptcy discharge mechanism, as it looks to give bankrupt individuals a second chance to rebuild their lives.
Minister in the Prime Minister’s Department (Law and Institutional Reforms) Datuk Seri Azalina Othman Said tabled the bill for first reading in Dewan Rakyat on Monday (May 22).
“The Bill aims to amend the Insolvency Act, in line with the implementation of the second chance policy to help bankrupts be released from bankruptcy and be given a new chance to reestablish their financial position and contribute to the country’s economic development,” Azalina said in a statement.
Moreover, Azalina said the proposed amendment to the Act also includes the use of technology in the administration of insolvency cases, conducting creditor meetings, and the review of valuations for matters related to bankruptcy.
“This amendment is also a commitment by the government to provide effective insolvency legislation in Malaysia, to meet the current needs and challenges by taking into account the interests of the public, bankrupts and creditors,” Azalina added.
Azalina said the Bill will also be tabled for second reading sometime this week. The current Dewan Rakyat meeting will sit until June 15, and then resume on Oct 9.
Previously in March, Azalina said 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 are passed.
She had also noted that the Insolvency Department listed three conditions to discharge bankrupt individuals: 1) a bankruptcy declaration that exceeded five years from the date of the acceptance order and the bankruptcy order; 2) an amount of outstanding debt not exceeding RM50,000; and 3) no court order, proceeding and/or investigation being carried out on the insolvent under the Act.
The government’s intent to amend the law was first shared by Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2023 in February.
Meanwhile, Minister of Communications and Digital Fahmi Fadzil presented the Fees (Department of Broadcasting, Malaysia ) (Confirmation) Bill 2023 which aims to verify the collection of fees in relation to any television programme provided by the Broadcasting Department during the period March 15, 2001 to Feb 28, 2022.
Azalina and Fahmi informed that the bills would be tabled for second reading at this second meeting.
