KUALA LUMPUR: Saving businesses from financial ruin should not be misconstrued as saving every company at any cost and companies must not view second chances as a licence to escape responsibility, says Datuk Seri Azalina Othman Said (pic).
The Minister in the Prime Minister’s Department (Law and Institutional Reform) said saving businesses facing financial ruin must be guided by the principle of rescue where possible, restructure where viable and resolve responsibly where necessary.
“The strength of a nation is not measured by whether its people and businesses never fall.
“It is measured by whether its institutions give them a fair opportunity to rise again,” said Azalina in her speech while officiating a forum on Asian Insolvency Reform 2026 titled “Future-proofing Asian Insolvency Systems” here yesterday.
Corporate rescue must never become corporate immunity, she added.
“Accountability must remain central, and creditors’ legitimate rights must be protected.
“Our objective is not to save every company at any cost, but to distinguish between businesses that remain viable and those that require an orderly resolution,” said Azalina.
She also said modern insolvency reform must go beyond managing failure.
“ A company that cannot pay its debts today is not necessarily a company without an economic future.
“Some businesses experiencing financial distress may still possess valuable products, experienced employees, established customers and productive assets.
“Premature liquidation may therefore destroy jobs, disrupt supply chains, affect creditors’ recovery prospects and eliminate economic value that could otherwise be preserved through restructuring,” said Azalina.
She said offering lifelines to businesses in financial trouble must preserve economic value, restore dignity and enable businesses and individuals to rebuild their future.
“Second chances are an opportunity for eligible individuals to regain financial independence and contribute productively to society.
“We must never confuse financial failure with personal failure. This is what people-centred legal reform means.
“Behind every bankruptcy case, there is a human story. It may involve a single parent, an entrepreneur whose business has collapsed, a victim of financial scams or a purchaser affected by an abandoned housing project,” she said.
Financial difficulties should not automatically result in permanent economic exclusion, said Azalina.
“This is the philosophy behind Malaysia’s Second Chance Policy – Fast Track Discharge Programme 2026 launched last February.
“The programme prioritises four categories: single parents, micro, small and medium enterprise (MSME) borrowers, victims of financial scams and purchasers affected by abandoned housing projects,” she said.
