Gov’t-Banks Roundtable Meeting To Give Clearer Picture On Insolvency Act 1967

KUALA LUMPUR — The roundtable meeting aimed at giving a clearer picture to the banking institutions in the country on the government’s amendments contained in the Insolvency Act 1967 which came into force last October, was held here today.

The meeting between the Bank Negara Malaysia (BNM), Credit Counselling and Debt Management Agency (AKPK) and the Association of Banks in Malaysia (ABM) on issues related to bankruptcy was chaired by Minister in the Prime Minister’s Department Datuk Seri Azalina Othman Said.

Azalina in a statement said the meeting held in Putrajaya was also held to discuss technical issues faced by both parties to find common grounds to resolve bankruptcy problems in the country.

“Among the issues discussed are the rescue mechanism through the voluntary arrangement (VA) method, the increase of minimum bankruptcy sum owed from RM30,000 to RM50,000 and bankruptcy cases that have been administered by the Malaysia Department of Insolvency for the past 15 years,” she said.

Also present at the talk was the Legal Affairs Division (BHEUU) director-general Datuk Jalil Marzuki, Malaysia Department of Insolvency deputy director-general Datuk Meor Hashimi Abdul Hamid, BNM’s Consumer and Market Conduct Department director Jeremy Lee, ABM executive director Kalpana Sambasivamurthy, AKPK chief executive officer Azaddin Ngah Tasir and representatives of over 30 commercial banks operating in Malaysia.

Azalina said the government aimed at clearing 10,000 bankrupts a year over the next five years.

“The government also hopes that the banks will scrutinise and make appropriate decisions before objecting against the recommended release.

“Good cooperation from the banks is also expected to allow rescue mechanisms to be used to provide debtors with debt restructuring to avoid any bankruptcy proceedings against them,” she added.