Bankruptcy Threshold Review | The star
KUALA LUMPUR: Bankruptcy threshold is being revised amid high number of such cases, especially among young people, says Datuk Seri Ismail Sabri Yaakob.
The prime minister said the government raised the bankruptcy threshold at the start of the Covid-19 pandemic.
“I will discuss the matter with the Minister within the Prime Minister’s Office (Parliament and Law) to review the relevant legislation.
“I will also meet with the Governor of Bank Negara Malaysia to consider all legal perspectives on whether it can be (raised) again.
“Please believe that the future of the youth will be the main agenda of the government,” he said in his closing speech at the Barisan Nasional Youth Job Fair 2022 yesterday.
In 2020, the government had amended the Insolvency Act 1967 to raise the threshold for bankruptcy from RM50,000 to RM100,000.
The increase was aimed at strengthening the economy while allowing individuals to better manage their finances during a period of uncertainty due to the pandemic.
Earlier at yesterday’s event, Barisan Datuk Youth Leader Dr. Asyraf Wajdi Dusuki urged the government to take drastic measures to curb the rising number of bankruptcy cases.
He also called on the government to review the insolvency law by amending “archaic elements” and introducing more “progressive and modern” initiatives in the law.
According to the Insolvency Department, a staggering 18 people were declared bankrupt every day in the first five months of this year.
Data from the department also showed that between January and May, a total of 2,694 people were declared bankrupt, bringing the number of bankruptcies in the country to 274,628.
On another topic, the Prime Minister said the Covid-19 pandemic has changed the country’s employment landscape.
However, things have gradually improved with the unemployment rate falling to 3.9% in April this year based on official figures, said Ismail Sabri.
“This year, the government aims to provide a total of 600,000 jobs with an allocation of RM4.8 billion through the Malaysian Family Employment Guarantee Scheme,” he added.
He also cited several other government initiatives that have helped job seekers find new jobs.
According to data from the Department of Statistics, 2,750 graduates have been successfully employed under the career advancement program, he said.
“As of May 8, the MyDigital Workforce Work in Tech has successfully placed 649 participants out of a total of 3,596 applicants, including young people, in jobs related to technology and digital services,” he added.