Datuk Takiyuddin Hassan – Bernama file photo
SIBU: The government will amend Section 5 (1) of the Insolvency Act 1967 to increase the threshold for bankruptcy, said Minister in the Prime Minister’s Department (Parliament and Law) Datuk Takiyuddin Hassan.
However, he told the Parliament sitting today that he could not announce its details yet as it was scheduled to be tabled at the current Dewan Rakyat sitting.
He said this when answering a supplementary question from Hannah Yeoh (DAP – Segambut) who asked if the government would increase the bankruptcy threshold in view of rising unemployment due to Covid-19.
The current bankruptcy threshold is RM50,000 after it was increased from RM30,000 following an amendment to the Act in 2017.
In his reply to Lukanisman Awang Sauni (GPS – Sibuti) on the same matter earlier, Takiyuddin said the government was concerned and worried that the number of Malaysians facing bankruptcy would increase post Covid-19.
“This is an unavoidable legal process and we cannot deny this right of creditors who can take this action as a mode of execution. To make sure the number will not increase, the government have took the initiatives to give awareness to the people on bankruptcy.
“The Insolvency Department also provided six months moratorium to those who have been declared bankrupt to ease their burdens,” he said.
Besides that, he said there were provisions under Section 33A of the Insolvency Act 1967 on discharge of bankrupts without objection from creditors if the person was declared a bankrupt for being a social guarantor, is registered as a disabled person, a deceased bankrupt or suffered serious illness.
Lukanisman said statistics from the Insolvency Department showed that a total of 10,532 youths aged between 25 and 34 were declared bankrupt between 2018 and 2019.