KUALA LUMPUR: Bankrupts whose debts are under RM50,000 could be released from bankruptcy status from March 1.
Prime Minister Datuk Seri Anwar Ibrahim said the government is looking at giving bankrupts a second chance to rebuild their lives.
"As of January this year, there were more than 260,000 bankruptcy cases recorded, the majority of whom are Malays who have the potential to contribute to the nation's economy," he said during the tabling of the revised 2023 Budget today.
The government, he said, will amend the Insolvency Act 1967 to enable bankrupts to be freed from bankruptcy automatically soon.
He said bankrupts whose outstanding debts total under RM50,000 will be released from bankrupt status immediately as of March 1, subject to conditions.
Anwar said the government estimated that 130,000 people would be freed from bankruptcy status when the amendments are passed.