Malaysia Introduces Second Chance Fast Track Policy For Bankrupt Individuals

PUTRAJAYA, Feb 16 (Bernama) -- The Malaysian government has introduced the ‘Second Chance Fast Track Policy’ aimed at providing an express pathway and expediting the discharge mechanism for four targeted groups of bankrupt individuals.

Minister in the Prime Minister’s Department (Law and Institutional Reform) Azalina Othman Said said the policy was introduced to help the targeted groups rebuild their lives and continue contributing to national development.

The four target groups eligible under the policy are single parents; microloan entrepreneurs; victims of financial fraud (scammers); and housing loan borrowers affected by abandoned housing projects.

“As a result, single parents can return to work, entrepreneurs can resume their businesses and scam victims can finally breathe a sigh of relief.

“This Fast Track initiative is not merely a rebranding exercise. It is a MADANI commitment to accelerate justice through an empathetic policy that rescues individuals from an endless cycle of debt so that they can rise again with dignity,” she said at the launch of the programme by the Insolvency Department (MdI) here on Monday.

Azalina said the Second Chance Fast Track Policy Discharge Programme was founded on a clear principle within the Malaysia MADANI Framework, namely care and compassion.

“This reflects the MADANI Government’s approach of not being perpetually punitive. MADANI provides space for the people to rise again and believes that every citizen deserves a second chance.

“The MADANI Government holds that financial failure is not the end of life. It can become a turning point if our system is fair, efficient and, most importantly, humane,” she said.

Azalina also said that MdI successfully resolved 176,851 bankruptcy discharge cases in 2024 and 204,487 discharge cases last year.

“These are not merely figures, but more than 381,000 lives that have been given a new lease of life,” she said.

-- BERNAMA