KUALA LUMPUR: The bankruptcy threshold will be raised from RM100,000 to RM150,000 from next year, Prime Minister Anwar Ibrahim announced when tabling Budget 2027.
Anwar also said the government would expand the Second Chance Policy to cover more vulnerable groups, including primary caregivers of persons with disabilities, patients with chronic illnesses, senior citizens, gig workers and individuals with irregular incomes.
He said the move was aimed at widening access to financial relief and providing more opportunities for affected individuals to rebuild their lives.
Meanwhile, the government will continue strengthening the automatic discharge mechanism under Section 33C of the Insolvency Act, which allows eligible bankrupt individuals to be discharged as early as three years.
Anwar said the measure would help expedite the discharge process for eligible individuals, enabling them to regain their financial footing and move towards economic recovery.
