THE government’s plan to study the establishment of a Malaysian Law Reform Commission and expand bankruptcy relief measures has been welcomed by Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
In a statement today, Azalina said the proposed commission would review outdated legislation, address gaps in existing laws and recommend changes to keep the country’s legal framework up to date.
The review would cover areas including contracts, the sale of goods and mediation, she said.
Azalina also welcomed measures to expand the Second Chance Policy, which she said had helped more than 250,000 Malaysians exit bankruptcy since 2023.
From 2027, the bankruptcy threshold will be raised from RM100,000 to RM150,000.
The policy will also be extended to primary caregivers of family members with disabilities, chronic illnesses and elderly relatives, as well as gig workers and individuals with irregular incomes.
The government will also strengthen automatic discharge provisions under Section 33C of the Insolvency Act 1967, allowing eligible individuals to be discharged from bankruptcy as early as three years.
Azalina said the proposed commission would complement wider institutional reforms, including efforts to strengthen parliamentary autonomy, enhance parliamentary select committees and introduce Prime Minister’s Question Time (PMQT).
Other proposed reforms include limiting the prime minister’s tenure and separating the roles of the Attorney-General and Public Prosecutor.
While the proposal to limit the prime minister’s tenure has yet to secure the required two-thirds majority in Parliament, Azalina said the government remained committed to reform while respecting the democratic process.
She also welcomed the expansion of individual lifestyle tax relief to cover pet vaccination expenses and the adoption of animals from registered centres, saying the measures would encourage responsible pet ownership.
As Pengerang MP, Azalina welcomed PETRONAS’ move to take full ownership of the Pengerang Integrated Complex, saying it would strengthen Malaysia’s fuel supply security.
She also highlighted the planned Pengerang Biorefinery, a partnership involving Enilive, Eni and Euglena, which is expected to create economic opportunities and high-value jobs through the production of lower-carbon fuels.
These include sustainable aviation fuel (SAF), hydrotreated vegetable oil (HVO) and bionaphtha.
Azalina said Budget 2027 reflected the government’s broader reform agenda, which aimed not only to strengthen laws and institutions but also to deliver practical benefits to the public and safeguard the country’s future. - October 9, 2026
