Amendments have been passed by the Dewan Rakyat to the Malaysian Insolvency Act increasing the bankruptcy threshold in the country from RM50,000 to RM100,000 for the fourth time in 44 years.
The reason for the numerous adjustments to the threshold is to avoid debtors declaring bankruptcy, this number has drastically decreased since the threshold was adjusted to RM50,000 in 2017. Statistics have shown that the most recent threshold increase has resulted in a 34% reduction of people declaring bankruptcy from 2017 to 2019.
Malaysia, Thailand, and many other nations have experienced an increase in financial hardships due to the COVID-19 pandemic. Lawyers have noted that there are more clear regulations and services for bankruptcy, debt collection, and unfair dismissal in Thailand.
The Malaysian Parliament has said that citizens will find it easier to manage their finances amongst the COVID-19 pandemic due to the new threshold.
Source:
{ 0 comments… add one now }