PUTRAJAYA, July 25 — The government has succeeded in surpassing the bankruptcy release target, with 142,510 cases under the Second Chance Policy, compared to the initial target of 130,000 cases, Prime Minister Datuk Seri Anwar Ibrahim said.
He said this policy is an initiative under the Prinsip Rukun Ihsan to exercise the law with discretion for people in need.
“Sometimes these bankruptcies are due to economic situations, as was the case during Covid-19 where the economy affects their economic conditions... There were also mistakes made by them, especially the traders.
“But our responsibility is to stimulate the economy and give them opportunities. This is our initial step to make Malaysia a competitive and developed country,” he said at the Insolvency Department’s (MDI) centennial celebration here today.
Also present at the ceremony was Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
The Second Chance Policy was announced by Anwar under Budget 2024.
The policy is extended to bankrupt individuals to give them a chance to contribute to the national economy and live a new life.
It aimed to release 130,000 people declared bankrupt up to a period of one year after Act A1695 Insolvency (Amendment) 2023 came into force.
“Those (in MDI) should continue reforms and lay the foundations of Madani as one of the pillars of kindness. We can extend compassion or consideration and are ready to forgive and also give space to the people.
“That’s why in this Madani budget, we emphasise several measures, and I’m proud of the actions taken by the minister and the MDI to bring about changes including in insolvency amendment.
“In one year, this department showed its efficiency in releasing more than 140,000 people from bankruptcy, which means 140,000 families have been rescued,” Anwar said.
Meanwhile, Anwar insisted individuals or companies that have been given a second chance should cherish the opportunity.
“First, don’t repeat past mistakes, and second, understand the opportunities that are provided by the government and the network of various departments and ministries such as Tekun, Mara or PUNB.
“We have this second chance, and the relevant departments should provide assurance (to second chance recipients) as well as links to the existing network of departments. There are many opportunities, but sometimes our weakness is due to the lack of coordination.
“The responsibility of departments involved is not only to give recipients assistance in terms of principle, but to direct them to appropriate departments or agencies so they can help drive the country’s growth,” he said, adding that there has never been a government to resolve 142,510 bankruptcy cases since the nation’s independence.
Anwar also said the government has also provided Rahmah injections to more than nine million people, especially from the B40 and M40 groups, with a total of RM10 billion disbursed.
— Bernama
