Malaysia

Insolvency Department promotes fresh start for bankrupt individuals

The first Second Chance Policy Carnival opens in Putrajaya with free financial advisory services and legal consultations, as the government seeks to help bankrupt individuals rebuild their lives

Updated 1 hour ago · Published on 26 Jun 2026 2:14PM

Insolvency Department promotes fresh start for bankrupt individuals
Second chance carnival offers vehicles from RM1,300 (Photo from NSTP) - June 26, 2026

MALAYSIA'S inaugural Second Chance Policy Carnival has opened with a wide-ranging programme of public services and low-cost asset auctions, including vehicles with opening bids from as little as RM1,300, as part of efforts to promote financial rehabilitation and support individuals declared bankrupt.

The three-day carnival, being held until Sunday at the car park near the Palace of Justice in Precinct 3, is expected to attract more than 200,000 visitors and is aimed at raising awareness of the government's Second Chance Policy while helping bankrupt individuals rebuild their lives.

One of the event's main attractions is the public auction of a variety of vehicles, ranging from locally manufactured models to luxury marques such as Jaguar, Aston Martin, BMW, Honda CR-V and Toyota Caldina.

Director of the Liquidation Division at the Malaysian Insolvency Department (MdI), Mohd Mukhzany Fariz Mohd Mokhtar, said the vehicle auctions will begin on Saturday, with sessions scheduled for 11.30am and 5.30pm.

"Among the main attractions is the auction's starting price of as low as RM1,300 for a vehicle. The carnival is not merely an opportunity for the public to acquire assets at attractive prices, but also serves to bring the Malaysian Insolvency Department closer to the community.

"The auction process is conducted openly and transparently, making bidding more accessible and giving members of the public the opportunity to acquire assets at prices well below market value," BH reported him saying on Friday.

Mohd Mukhzany said attendance is expected to increase following the official opening ceremony by Minister in the Prime Minister's Department (Law and Institutional Reform), Datuk Seri Azalina Othman Said.

In addition to the vehicle auctions, the carnival features 20 food trucks, 30 food festival vendors and 16 booths operated by government agencies and private-sector organisations offering a range of services, including free financial counselling and bankruptcy-related advice.

Visitors are also able to bid for other items, including computer equipment with opening bids from RM4, as well as merchandise sourced from online marketplace Shopee.

Mohd Mukhzany said the department believes individuals who are committed to rebuilding their lives deserve an opportunity to recover from financial hardship and should not face lifelong punishment for past financial failures.

He said the Second Chance Policy continues to be strengthened through a more inclusive, compassionate and rehabilitation-oriented approach.

Private-sector employee Raziman Elias, 41, said the carnival had broadened public understanding of the Malaysian Insolvency Department's role beyond managing bankruptcy cases.

He said the event had helped change public perceptions by highlighting the department's role in assisting financially distressed individuals to resolve their debts and work towards being discharged from bankruptcy.

"Through the clinics and booths provided at the carnival, members of the public can obtain free legal advice and information on bankruptcy management.

"There are actually many services provided by the Malaysian Insolvency Department that can assist bankrupt individuals, but many people may not be aware of them. This carnival gives us the opportunity to engage with the department in a more open and approachable setting.

"Many facilities are also available here, including a surau, public toilets, parking areas, dining spaces and comfortable seating throughout the carnival," he said. - June 26, 2026

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