Over 14,000 individuals discharged from bankruptcy status between 2013 and 2017 (Updated)

KUALA LUMPUR: There are still more than 300,958 bankrupt Malaysians despite the amendments to the insolvency law to help reduce the number, the Dewan Rakyat was told.

Deputy Minister in Prime Minister's Department Datuk Razali Ibrahim said the government is still working hard to reduce the total number of bankrupts, which has come up to 300,958 to date, with more than 60% of them aged between 35-54.

"We are trying to reduce this number. It is a lot of effort and work," he said responding to a supplementary question from M. Kulasegaran (DAP-Ipoh Barat).

Razali said the initiatives taken is to ensure that Malaysians are not easily declared bankrupt.

He said the people should not be afraid of the Insolvency Department or the Credit Counselling and Debt Management Agency (AKPK).

"We want Malaysians to continue to actively contribute to the country and not become bankrupts. High bankruptcy in a country can affect its productivity.

"So the amendments to the law can help people be more responsible in managing their finances and at the same time financial institutions can also be more responsible in approving loans," he said.

Earlier he responded to Er Teck Hwa (DAP-Bakri), who had asked for the statistics of bankrupts that were discharged according to the states from 2013-2017.

Razali said a total of 100,610 people were declared bankrupt, about 14% from the total, that is 14,108 people have been discharged in the same period of time.

Selangor recorded the highest discharge of bankrupts with 4,189 people followed by Johor with 2,278 people.

The Federal Territory and Penang recorded 1,665 and 1,002 people discharged respectively.

Sarawak discharged 961 bankrupts, Perak 895 people, Sabah 737 people, Kedah 550 people, Pahang 468 people, Negri Sembilan 423 people, Kelantan 342 people, Malacca 291 people, Terengganu 253 people and Perlis discharged 54 people.