KUALA LUMPUR: A total of 253,457 bankruptcy discharge cases were recorded between 2023 and September this year, as the government moves to raise the bankruptcy threshold from RM100,000 to RM150,000, says Datuk Seri Azalina Othman Said.
The Minister in the Prime Minister's Department (Law and Institutional Reform) said the proposed increase was aimed at reducing the risk of bankruptcy while giving debtors greater room to restructure their finances.
"The move is intended to reduce bankruptcy risks and provide debtors with an opportunity to reorganise their finances.
"At the same time, the government is strengthening its recovery efforts through the second-chance policy, which has recorded 253,457 bankruptcy discharge cases from 2023 to September 2026," she said during her winding-up speech on Budget 2027 in the Dewan Rakyat on Monday (Oct 26).
The proposed increase in the bankruptcy threshold was announced by Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2027 on Oct 9.
Azalina said the government's efforts would continue under the Fast Track Discharge Programme 2026, which prioritises certain groups, including single parents, owners of micro, small and medium enterprises, scam victims and buyers of abandoned housing projects.
She said applications for bankruptcy discharge could now be submitted online through the Insolvency Department's e-Insolvensi portal.
"For eligible applicants, the fast-track process can be completed within 36 days, subject to the relevant conditions and the absence of objections from the parties concerned," she said.
Azalina added that the government, through the Insolvency Department, was targeting a shorter discharge period in 2027.
"God willing, we hope to reduce the processing period to less than 36 days next year," she said.
She said the department would also prioritise eligible groups identified under Budget 2027 while strengthening financial rehabilitation mechanisms to help more individuals secure a second chance.
