As such, the country has recorded a worrying number of bankruptcy cases during the pandemic.
Worrying numbers
Law minister Datuk Seri Wan Junaidi Tuanku Jaafar told Malay Mail that Malaysia has so far recorded a total of 11,207 bankruptcy cases ever since the COVID-19 pandemic hit the country back in March 2020.When breaking down the cases, Wan Junaidi said in a written parliamentary reply that 6,344 cases were recorded from March to December 2020, while 4,863 were recorded from January to October this year.
However, here's the even more worrying news: that may not even be the final number.
Image credit: Malay Mail
Wan Junaidi revealed that the full financial impact of the pandemic on debtors may take longer to be seen, as creditors (those who loaned the money) would have to wait at least six months after their debtors fail to make repayments before they can take action against them.
“To look at the actual impact of COVID-19 on debtors, it will take at least one (1) year starting from the date of default payment, since creditors can only petition for bankruptcy action based on what had happened in the six (6) months before presenting the petition,” he was quoted as saying.
Sigh, let's hope that the numbers do not increase by that much.
MAIN IMAGE CREDIT: TODAYonline