INSOLVENCY (AMENDMENT) ACT 2023

This amendment aims to provide for a more effective administration of the estate of the bankrupts in Malaysia and to discharge the bankrupts within a short period of time for a better contribution to the development of the country’s economy. It seeks, amongst others, to strengthen the provisions relating to automatic discharge, to dispense with the mandatory requirement of holding the first meeting of creditors, to introduce the use of remote communication technology in the bankruptcy administration, to review the value of the properties and income of wage-earner for the purposes of summary administration and to review the value of properties of bankrupts exempted from distribution to the creditors.

It also amends subsection 33B (2A) to add two more categories of bankrupts who may be discharged from bankruptcy by a certificate of the Director General of Insolvency without objection by the creditors. Section 33C is meant to improve the provisions relating to automatic discharge and to empower the Director General of Insolvency to suspend the automatic discharge of a bankrupt. It also specifies that a notice of the automatic discharge shall be served on the creditors who have filed a proof of debts and that a notice of the suspension of an automatic discharge shall be served on the bankrupt as well as the creditors who have filed a proof of debts.

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