The ‘automatic discharge’ order, which will allow a bankrupt company to have a second chance at conducting business, is being proposed under an amendment to the Bankruptcy Act 1967 (Act 360).
SME Corporation Malaysia (SME Corp) Chief Executive Officer Datuk Hafsah Hashim said the proposal would not only help propel the Malaysian economy but also give certain individuals an ‘opportunity to start a new lease of life.’
“In Malaysia, once you are declared bankrupt, you are doomed for life. These people, who are down and out, do not want to go on the same path again.”
“Therefore, they will aim higher when they come back. They’ll be more careful, cautious, innovative and creative.”