PETALING JAYA: The Malaysian Trades Union Congress (MTUC) has called upon the authorities to issue a directive to financial institutions to halt bankruptcy proceedings after the loan moratorium period ends in December.
MTUC president Datuk Abdul Halim Mansor said it was urgent to issue such a directive in view of rampant layoffs and pay cuts in recent months.
"We welcome the government's move to amend the Insolvency Act 1967, but the process will take a long time.
"In the meantime, the government can issue an official directive to stop financial institutions from taking action against those genuinely affected by economic uncertainties aggravated by the Covid-19 pandemic," he said.
Halim said it was crucial to implement fast and practical solutions as 5.5% of the workers have lost their jobs already, while many others were forced to take pay cuts or unpaid leave.
He said this in response to de facto Law Minister Datuk Takiyuddin Hassan's announcement that the bankruptcy threshold would be revised, and that the law would be amended to include automatic three-year reprieve for those declared bankrupt.
The threshold was increased from RM30,000 to RM50,000 under the Insolvency Act (Amendment) 2017 that took effect on Oct 6 last year.
"The Finance Minister's statement and directive, with the support of the financial institutions, is more important to quickly tackle the problem," he said.
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