About HKTDC | Media Room | Contact HKTDC | Wish List Wish List () | My HKTDC |
繁體 简体
Save As PDF Print this page
Qzone

MALAYSIA: Statutory Bankruptcy Discharge and Higher Initiation Threshold Introduced

Bankruptcy proceedings can now only be initiated against companies that owe RM50,000 (US$11,280) rather than the previous threshold of RM30,000 (US$6,768). The move comes as part of the country’s Bankruptcy (Amendment) Bill 2016, which also sets a statutory bankruptcy period of three years, after which discharge is automatic.

The Bill also provides a degree of protection for social guarantors, assuring that these not for-profit lenders are not automatically declared bankrupt when a borrower reneges on a loan arrangement. It also facilitates the introduction of a rescue mechanism allowing debtors to negotiate a debt settlement arrangement with their creditors prior to the initiation of any legal proceedings.

Content provided by Picture: HKTDC Research
Comments (0)
Shows local time in Hong Kong (GMT+8 hours)

HKTDC welcomes your views. Please stay on topic and be respectful of other readers.
Review our Comment Policy

*Add a comment (up to 5,000 characters)