Law Minister Says Over 11,000 Malaysians Declared Bankrupt Due To The Pandemic

A total of 11,207 Malaysians have been declared bankrupt since the COVID-19 pandemic began.

According to Free Malaysia Today, in a parliamentary written reply, law minister Wan Junaidi Tuanku Jaafar said these statistics were from March 2020 to September this year. 

law minister says over 11,000 malaysians declared bankrupt due to the pandemicPhoto via Borneo Post Online

He said 6,344 cases were recorded last year and 4,863 this year. 

“It will take at least a year from the date of breach of contract to see the actual effect of COVID-19 on debtors. This is because creditors can only petition for bankruptcy action that has occurred in the previous six months.”

He added that the breachers of contract were expected after the six-month moratorium for housing and car loan repayments ended in September last year and after the targeted six-month moratorium ended in March.

“The insolvency department will investigate the number of bankruptcy cases registered during these periods and will take appropriate action,” he added.

We hope everyone is doing well, and hopefully we can go back to normal very, very soon!

By: Aishah Akashah Ahadiat