The government is considering to raise the bankruptcy threshold again as the bankruptcy situation of young people is worrying!
According to a message from Prime Minister Datuk Seri Ismail Sabri, the number of young people going bankrupt and the number continues to climb is worrying and the government will consider amending the Bankruptcy Act 1967.
The government has raised the bankruptcy threshold from RM50,000 to RM100,000 during the epidemic and is holding off on taking action against the people concerned. However, the bankruptcy threshold has been restored to its original level after August 31, 2021.
In the first five months of 2022, there were 2,694 bankruptcy cases in Malaysia, which means an average of 18 bankruptcy cases per day. There are currently 274,628 bankruptcy cases in the country, of which 60% are aged 25 to 44. We also have 200 bankrupt people who are young people aged 25 or younger.
The Prime Minister is concerned about the bankruptcy of young people and will be meeting with the Minister of Law and the President of the National Bank to discuss the legal action aspect.
The current Malaysian bankruptcy law does not have a time limit for the bankruptcy to leave bankruptcy, and the bankrupt must pay off the debts owed before they can leave bankruptcy. The government is considering following the example of the United States and European countries to establish a time limit for bankruptcy to make it easier for bankrupts to leave bankruptcy.
