During the recent economic crisis, a number of businessmen and individuals who faced financial problems and some of them were declared bankrupt. They were also blacklisted and not able to conduct businesses or apply for loans.
To help these individuals, the new Insolvency Act will consolidate the Bankruptcy Act 1967 and Part 10 of the Companies Act 1965, including introduction of provision relating to relief mechanism for companies and individuals with financial problems. The review will also involve amending the current minimum bankruptcy limit of RM30,000.
No further details were given in the budget announcement.