Over 10,000 declared bankrupt during MCO period

A total of 10,317 individuals were declared bankrupt throughout the movement control order (MCO) period between March 2020 and July, Prime Minister Ismail Sabri Yaakob said today.

Citing data from the Malaysian Department of Insolvency (MdI), he said Selangor had the highest number of individuals declared bankrupt, at 2,555, followed by the federal territories (1,288 people) and Johor (792 people).

A total of 1,246 businesses also closed down during the same period.

“The MdI has no record relating to the number of workers laid off during the MCO period as it only acts in handling the administration of individual bankruptcy cases and of companies that have obtained winding up orders from the court,” he said in a written reply at the Dewan Rakyat.

He was replying to a question by Lim Lip Eng (PH-Kepong), who wanted to know the number of companies that have closed down and the data on workers laid off for 2020 and 2021, as well as the specific economic assistance given to businesses that closed down and individuals who had lost their jobs during the MCO period.

Ismail said based on input from the finance ministry, the government had not provided any specific assistance to businesses that closed down but instead took the approach of giving aid and incentives to support the continuity of businesses.

“Hence, various programmes and initiatives were launched through the various economic stimulus packages and financial assistance, which were announced with the focus of supporting businesses and protecting the people,” he said.

Among the initiatives were the Prihatin Special Grant, Wage Subsidy Programme, levy exemption, loan repayment moratorium, micro credit scheme, job search allowance, income loss assistance and Employees Provident Fund withdrawal facility as well as special Covid-19 assistance, he said.