KUALA LUMPUR (May 24): The Dewan Rakyat unanimously passed amendments to the Insolvency Act 1967 via a voice vote on Wednesday (May 24).
The amendments involve improvements to the Act’s automatic discharge mechanism, streamlining of creditor meeting process, enabling the use of technology in bankruptcy administration, and addition of two eligible bankrupt categories to be released through a certificate issued by the director-general of insolvency without objections from the creditors.
“This Bill illustrates the government’s serious steps to ensure effective insolvency administration in Malaysia,” Minister in the Prime Minister’s Department (Law and Institutional Reforms) Datuk Seri Azalina Othman Said said during her winding-up speech for the Bill.
“The amendments proposed through this Bill by the unity government are crucial to ensure the administrative system carried out in Malaysia is effective,” the minister added, saying the amendments ensure no group is left behind in the nation’s development.
During the debate session, Azalina agreed with points raised by lawmakers that more financial literacy is needed among the youth to prevent bankruptcy cases.
To that end, she said the Malaysian Department of Insolvency has held outreach programmes at schools and higher education institutions aimed at educating youths on the effects of serious indebtedness and bankruptcy.
“The AKPK (Credit Counselling and Debt Management Agency) also runs a financial literacy programme at the formal education level,” she said, noting the programme is aimed at imparting financial management knowledge to youths.
In addition, Azalina said the Ministry of Education (MOE) continues to strive to ensure that its curriculum is relevant to current times, but noted that it has yet to create a specific mandatory subject related to financial management.
“However, financial management and planning is one of six components in financial education that has been integrated into the curriculum from preschool to high school.
“Through the implementation of this component in core and elective subjects, the MOE is confident that students can learn the basics of financial management that can be utilised in day-to-day life,” Azalina said, adding that this approach will produce students who are financially literate.
She also noted that from 2019 to 2023, only 107 bankruptcy cases involving individuals aged below 25 years old were recorded. Those most affected by bankruptcy were individuals aged between 34 and 44 years old, with 13,073 cases recorded in the same five-year period.
In terms of gender, 25,104 men versus 8,912 women were declared bankrupt in the same period.
The current Dewan Rakyat sitting ends on Thursday (May 25), and resumes from June 6 to 15. The House's next session will be from Oct 9 to Nov 30.
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