Summary
- Bankruptcy threshold increases by 50%.
- Second-chance policy expanded to more groups.
- Eligible bankrupt individuals may qualify for an earlier discharge.
KUALA LUMPUR, October 10 — The government will increase Malaysia’s bankruptcy threshold from RM100,000 to RM150,000 beginning in 2027, as part of efforts to provide greater financial protection.
To individuals facing serious debt problems. Prime Minister and Finance Minister Anwar Ibrahim announced the 50% increase under Budget 2027.
Alongside improvements to the country’s bankruptcy discharge procedures. The government will also expand its Second Chance Policy to include primary caregivers of persons with disabilities.
Individuals with chronic illnesses, senior citizens, gig workers and those earning irregular incomes.
Automatic bankruptcy discharge, which may be granted as early as three years.
Under Section 33C of the Insolvency Act. Will continue to be strengthened for individuals who meet the required conditions. According to the budget speech, more than 250,000 Malaysians have been assisted in exiting bankruptcy since 2023.
