KUALA LUMPUR: The Insolvency Department discharged 170,751 individuals from bankruptcy, from March 2023 to September this year, said Datuk Seri Azalina Othman Said.
The Minister in the Prime Minister’s Department (Law and Institutional Reform) said among these individuals discharged are those under 40 years old with debts not exceeding RM200,000.
The Second Chance policy has contributed to the number of individuals discharged from bankruptcy, she said.
It was previously reported by The Star that 2024 recorded the highest number of bankruptcy cases discharged since the introduction of the policy.
First announced on Oct 13 last year, the policy was a government initiative for those with small-scale debt and to provide a pathway out of bankruptcy.
"The young people who have been released from bankruptcy have the opportunity to start a new life.
"Release from bankruptcy opens opportunities for them to expand their career in the professional and business field and improve their household's economy," she said.
Young people can also equip themselves with financial literacy through programmes by the Credit Counseling and Management Agency (AKPK), she said.
Azalina added that government agencies such as SME Bank, Tekun, Mara, and Agro Bank also play a role in helping young people venture into entrepreneurship.
Moreover, the government also has a special focus for the gig economy, which is a new area where a lot of young individuals work for, she said in a written response to Datuk Siti Aminah Aching (BN- Beaufort).
Siti Aminah had asked about government initiatives to support recently discharged young people aged 40 years and below, whose bankruptcy status amounted to debts not exceeding RM200,000.
