Malaysia discharges 249,000 bankrupt individuals under Second Chance Policy this year
Minister Datuk Seri Azalina Othman Said announced that 249,000 people have been released from bankruptcy under the Second Chance Policy so far this year, with new support programmes targeting the creative sector.
At a Kuala Lumpur event, Datuk Seri Azalina Othman Said reported that 249,000 bankrupt individuals have been discharged under the Second Chance Policy this year. The announcement coincided with the launch of a programme, co-run by the Insolvency Department and the National Film Development Corporation Malaysia (Finas), to provide financial counselling and legal advice to creative-industry professionals. Azalina noted a fast-track route for certain cases and stressed the importance of early engagement with the Legal Aid Department and a mediation centre for civil contracts of RM500,000 or less.
Hans Isaac, Finas chairman, said the agency will first aid those in immediate distress before extending services to the sector’s roughly 30,000 workers, offering free advice that was previously unavailable. The initiative follows previous years’ discharges of 204,487 in 2025 and 176,851 in 2024, and aims to reduce the number of bankrupt celebrities, of which 29 are currently listed. Overall, the effort seeks to improve financial stability and legal support for Malaysia’s creative community.
Why it matters
It shows how Malaysia is expanding bankruptcy relief and legal aid to protect vulnerable creative professionals.
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