Budget 2023: Bankruptcy status of 120,000 insolvents to be lifted

– Bernama

KUALA LUMPUR: The bankruptcy status for 120,000 insolvents will be automatically lifted on March 1, says Datuk Seri Anwar Ibrahim.

The Finance Minister and Prime Minister said this comes in the wake of plans by the government to table amendments to the Insolvency Act to make it easier to lift the bankruptcy status of individuals.

"As of January, there are more than 260,000 bankruptcy cases recorded, the majority involving young Malays who have the potential to contribute to the economy.

"The government will amend the Insolvency Act 1967 so that bankruptcy cases can be automatically released quickly.

"While waiting for the amendments, there are small cases with debts of less than RM50,000. If conditions are fulfilled these will be immediately lifted from bankruptcy on March 1," he said when tabling Budget 2023 in the Dewan Rakyat on Friday (Feb 24).

He said that the move would benefit some 130,000 individuals who have been declared bankrupt.