KUCHING: The Malaysian Department of Insolvency suggested amendments to be established towards four allocations to launch the administration process of estate bankruptcy.
Minister in the Prime Minister’s Department (Parliament and Law) Datuk Seri Wan Junaidi Tuanku Jaafar said that the main focus of the department was to not just hasten the bankruptcy administration process but also to help those who are declared bankrupt, to get out of bankruptcy immediately.
Some of the amendments included the upgrade to the allocation of Section 33C 360 Act related to the automatic release to help more people who are declared bankrupt to get out of bankruptcy after its three-year period, to setting up time limit of filling debt proof form by the creditor to hasten the process of bankruptcy cancellation and to abolish the creditor first meeting, as the suggestion is for the meeting only to be held based on the needs and demands of the creditor to avoid delays and next planning can be done to help a person get out of bankruptcy.
“However, the department of Legal Affairs (BHEUU) and Attorney-General Committee (AGC) need to conduct the research for this suggestions in detail in terms of its implication to the public.”
Wan Junaidi added that some of the ministries suggested to be involved with the placeholder especially Ministry of Finance, Ministry of Entrepreneurship Development and Corporation, Ministry of International Trade and Industry, Ministry of Youth and Sports, Economy Planning Unit, Prime Minister’s Department alongside other ministries who are responsible to oversees companies including the small and medium enterprise and micro-entrepreneurs before it is decided and to be brought to the ministers through one Memorandum Jemaah Menteri (MJM).
“Based on the threshold that was increased to RM100,000, the statistics of bankruptcy cases that was registered shows a drop in which 12,051 cases in 2019, 8,351 cases in 2020, 6,554 cases in 2021 and 3,604 as of July 2022,” he added.
He said the drop was due to several factors, including the initiative from the government through moratorium and targeted aid from the bank in which the creditor and the borrower can discuss to rearrange the debts.
“Despite the decrease of the bankruptcy cases at the moment, MDI will continue to observe the overall bankruptcy cases that was filed by the creditors alongside upgrading the 360 Act in order to make the bankruptcy administration cases more efficient,” said Wan Junaidi.
