Kuala Lumpur:The government will increase the bankruptcy threshold from RM100,000 to RM150,000 starting in 2027, announced Prime Minister Datuk Seri Anwar Ibrahim.

According to BERNAMA News Agency, Prime Minister Anwar, who also serves as the Finance Minister, highlighted the achievements of the MADANI Government in helping over 250,000 individuals overcome bankruptcy since 2023 through various initiatives.

While presenting the budget in the Dewan Rakyat, themed 'Reaching for the Sky, Rooted in the Ground,' he revealed plans to expand the Second Chance Policy. This expansion will include primary caregivers of family members with disabilities, chronic illnesses, and the elderly, as well as gig workers and individuals with irregular incomes.

Furthermore, Anwar stated that the government intends to strengthen the automatic discharge provision under Section 33C of the Insolvency Act. This provision allows for discharge as early as three years and aims to expedite the release of bankrupt individuals who meet specific criteria.