KUALA LUMPUR: Malaysians who have been absolved from the bankruptcy list by the Malaysian Insolvency Department (MDI) through the Second Chance Policy should fully capitalise on the government’s offer, said Financial Consumer expert, Prof Dr. Mohamad Fazli Sabri.
He underscored the importance of seizing this opportunity to forge a brighter future, noting that such a chance may only arise once in a lifetime.
“There may not be a third or fourth chance, so seize this opportunity to increase income and ensure you do not fall back into the financially vulnerable category,“ he told Bernama during a recent interview.
The Second Chance Policy is a government initiative designed to protect the welfare of individuals burdened by small-scale debts, that provides a pathway out of bankruptcy under specific criteria, effective from March 1, 2023.
During the tabling of the 2024 Budget last year, Prime Minister Datuk Seri Anwar unveiled the extension of the Second Chance Policy to encompass individuals under 40 years old with debts not surpassing RM200,000, effective this year.
Anwar noted that nearly 14,000 bankruptcy cases involving minor debts under RM50,000 had been discharged as of July 2023.
Mohamad Fazli, also the Dean of the Faculty of Human Ecology at Universiti Putra Malaysia, underscored the initiative’s capacity to mitigate the emotional burden and societal stigma attached to financial hardships culminating in bankruptcy filings.
He highlighted that many young bankrupt individuals often overspend in pursuit of extravagant lifestyles, and thus suggested that the government should monitor discharged individuals to prevent them from sliding back into debt.
“There should be continuous educational programmes to enhance financial literacy, particularly in managing debts and loans,” he added.
Additionally, he advised individuals discharged from bankruptcy to equip themselves with a sound understanding of financial management practices to avoid falling back into financial vulnerability.
