PUTRAJAYA: The government has succeeded in surpassing the bankruptcy release target with a total of 142,510 cases through 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 one of the initiatives under the Prinsip Rukun Ihsan (Principle of Compassion) to implement of the law to the people in need.
“Sometimes these bankruptcies are due to economic situations, as in the case of COVID-19 where the level of the economy affects their economic conditions… there are also mistakes made by them, especially the traders.
“But our responsibility is to stimulate the economy and also give them opportunities. This is our initial step to make Malaysia a competitive and developed country,“ he said in the opening speech of the 100-year and New Direction celebration of the Malaysian Department of Insolvency (Mdl) 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 during the Budget 2024 presentation.
The policy is extended to bankrupts to provide them the opportunity to return to contribute to the national economy and live a new life.
It aims to release as many as 130,000 people who were declared bankrupt up to a period of one year after Act A 1695 came into force.
“Those (in the Mdl organisation) 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.
“So that’s why in this MADANI budget we emphasise several measures and I’m proud of the actions taken by the Minister and the department to bring about changes including in insolvency amendment.
“Just imagine if in one year this department showed its efficiency in releasing more than 140,000 people from bankruptcy, it means 140,000 families have been rescued,“ Anwar said.
Meanwhile, Anwar insisted that individuals or companies that have been given a second chance should carry out follow up.
“Firstly don’t repeat past mistakes, secondly understand the opportunities that are provided by the government and the network of various departments and ministries such as TEKUN, MARA or PUNB.
“So we have this second chance and the relevant department should provide assurance as well as links with the existing network of departments. There are many opportunities but sometimes our weakness is due to the lack of coordination.
“So the responsibility of those involved is not only to give them in terms of principle but to direct them to the appropriate department or agency so that they can help to drive the country’s growth,“ he said adding that there has never been a government that resolved 142,510 bankruptcy cases since independence
Anwar also said that the government has also provided Rahmah injections, which funds are provided to more than nine million people, especially from the B40 and M40 groups, involving a total of RM10 billion.
