KUALA LUMPUR, Aug 12 — A Bill to propose amendments to the Insolvency Act 1967 has been tabled for first reading today at the Dewan Rakyat by Minister in the Prime Minister’s Department Datuk Takiyuddin Hassan.
The Bill will seek to increase the minimum debt threshold, for the presentation of a bankruptcy petition, from RM50,000 to RM100,000.
If passed, the recommendations are proposed for a specific time period, if the Minister is satisfied that there are special circumstances and that it would not be contrary to public interest, to do so.
The proposed amendments also seek to provide for the status of the bankruptcy petition presented by the petitioning creditor against the debtor after the order made under the proposal subsection 1(A) ceases or expires.
Subsection 1(A) reads: “The Minister may, after consultation with the Minister of Finance, by order published in the Gazette, amend the amount of debt in paragraph (1)(a) for the presentation of a bankruptcy petition for a specific time period, if the MInister is satisfied that there are special circumstances and that it would not be contrary to public interest, to do so.”
This Bill will not involve the government in any extra financial expenditure.
Last week, Takiyuddin, who is the de facto law minister, said the government is working to raise the bankruptcy threshold by amending the legislation which currently sets the limit at RM50,000.
He reportedly told the Dewan Rakyat yesterday that a Bill to amend Section 5(1)(a) of the Act promises individuals and businesses room to manoeuvre amid their struggles in light of Covid-19 pandemic.
The minimum debt threshold was last increased from RM30,000 to the current amount in 2017.