The government is studying the incorporation of the Malaysian Insolvency Department
KUALA LUMPUR: The government will conduct a feasibility study for the proposed incorporation of the Malaysian Insolvency Department (MDI) in line with global best practices through comparison with other countries in the near future.
According to the Minister in the Prime Minister’s Department (Legal and Institutional Reform), Azalina Othman Said, it includes taking into account the views of cross-border insolvency experts, domestic and foreign experts, as well as the views of the general public in ensuring a more efficient insolvency administration.
“In line with current technology modernization and current trends, the development of digitization systems plays an important role in modernizing the implementation of operations.
“In driving competitiveness for sustainable growth, the government has taken steps to enhance the adoption of technology and digitization through the development of enterprise architecture (EA) by strengthening the value chain and improving governance mechanisms,” Azalina said in a media statement on Thursday.
She also added that the Second Chance Policy program introduced by the Government of Malaysia succeeded in exceeding the bankruptcy relief target with a total of 142,510 cases.
This policy previously targeted the release of 130,000 people who were declared bankrupt up to a period of one year after Act A1695 came into effect.
“The government’s commitment in this roll-out is to ensure that no group of people is left out of the flow of national development.
Nevertheless, the Second Chance Policy Agenda will also target effective insolvency administration through the efficient and effective management and production of insolvency assets, including those involving companies that have been wound up.
“To that end, the government, through the Malaysian Insolvency Department, has enhanced strategic collaboration with government and private agencies, particularly with the Insolvency Practitioners Association of Malaysia (iPAM), in an effort to empower the management and production of insolvency assets.
“Indirectly, this effort can promote the flow of money and economic growth, as well as attract financial investment and international trade to Malaysia,” he explained further.
