THE number of bankruptcy cases in the country has steadily declined by more than 70% last year against 2016, Deputy Finance Minister Ahmad Maslan said. 

Ahmad said the number of youth on the bankruptcy list had also shown a downward trend last year. 

“According to information obtained from the Insolvency Department, the number of bankruptcy cases for individuals decreased since 2016 from 19,588 cases to 5,695 as of last year. 

“The number of youth, individuals below the age of 35, also shows a decreasing trend, accounting for 13.5% of the total bankruptcy cases for 2022 compared with 22.5% between 2017 and 2021,” the Pontian MP told the Dewan Rakyat during the minister’s question and answer session today.

Ahmad was responding to an additional question from Mohd Shahar Abdullah (Paya Besar-BN) on the government’s measure to assist bankrupt individuals.

Ahmad said there are various procedures that must be taken into account by financial institutions to declare an individual as bankrupt and declaring them bankrupt is a last resort.

He added that amendments to the Insolvency Act 1967 would also help those declared bankrupt.   

However, he also said the government will release those declared bankrupt with debts under RM50,000. 

When tabling Budget 2023, Prime Minister and Finance Minister Anwar Ibrahim said bankrupts whose debts were under RM50,000 could be released from bankruptcy status from March 1.

Anwar said an estimated 130,000 people would be freed from bankruptcy status when the amendments are passed. – March 6, 2023.