29 January 2021
On 22 October 2020, the Insolvency (Amendment) Act 2020 (“Amendment Act”) was gazetted. The Amendment Act seeks to amend the Insolvency Act 1967 (“Act”) and is not yet in force.
The Amendment Act introduces changes including the following:
- Minimum debt threshold: Section 5(1)(a) of the Act is amended to increase the minimum debt threshold required for the presentation of a bankruptcy petition from RM50,000 to RM100,000. Additionally, the Minister will be empowered after consultation with the Minister of Finance, to amend the minimum threshold in section 5(1)(a) of the Act for a specific time period, if the Minister is satisfied that there are special circumstances and that it would not be contrary to public interest to do so.
- Saving provision: Any bankruptcy petition presented and is still pending immediately before the coming into operation of the Amendment Act will be continued or concluded under the Act as if the Act had not been amended by the Amendment Act.