KUALA LUMPUR – The government will review laws on bankruptcy so that they do not stigmatise and prevent individuals who have been declared bankrupt from working and doing business to pay off their debts.
Minister in the Prime Minister’s Department (Parliament and Law) Datuk Seri Wan Junaidi Tuanku Jaafar said he was in talks with his officials and the insolvency director-general to create a better and more friendly law for the community.
“When a person is declared bankrupt, he/she is no longer able to pay the debt. So what is the benefit for the lender?
“If the person can be allowed to do business and work, there is no stigma of bankruptcy. Companies and the government should not see bankrupt people as unable to work or live,” he said when asked by reporters about individuals forced to close their businesses and declare bankruptcy during the Covid-19 pandemic.
He said this during a press conference after the 11th Asean Law Ministers’ Meeting here today, which was conducted virtually with the participation of ministers from Brunei, Cambodia, Singapore, Vietnam, Laos, the Philippines, Indonesia, Thailand, and Myanmar.
On September 22 last year, the Senate passed the Insolvency (Amendment) Bill which sought to amend the minimum bankruptcy limit or minimum bankruptcy threshold from RM50,000 to RM100,000, thus making it more responsive and comprehensive to current needs and issues related to insolvency. – Bernama, October 27, 2021
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