The government is working on a new initiative to support companies facing financial distress following the recent success of the Second Chance Policy for individuals, says Datuk Seri Azalina Othman Said.
The Minister in the Prime Minister's Department (Law and Institutional Reform) said that a national convention, expected to be held in early 2025, would streamline the matter and set the stage for a more comprehensive strategy.
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The Minister in the Prime Minister's Department (Law and Institutional Reform) said that a national convention, expected to be held in early 2025, would streamline the matter and set the stage for a more comprehensive strategy.
Read more at https://tinyurl.com/4nwvrx75
WATCH MORE: https://thestartv.com/c/news
SUBSCRIBE: https://cutt.ly/TheStar
LIKE: https://fb.com/TheStarOnline
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NewsTranscript
00:00In my speech for Belia, I mentioned about the individual bankruptcy, AKPK.
00:14But if we look at the speech from the Minister,
00:19he mentioned about the second chance for the company.
00:24And in my speech, I know that in my area,
00:29many young people are involved in their own businesses.
00:33So we want to have a segment so that
00:38the second chance is given to small companies
00:43or large companies that are facing financial problems.
00:47I have heard a lot about the main challenges after COVID.
00:51It has a snowball effect on the economy and financial ability.
00:57But the bank loan, I still remember during COVID,
01:02it doesn't have to be paid on time, but it can be dragged at a certain time.
01:06But if the payment is dragged at a certain time,
01:09because of COVID, the business doesn't go in,
01:11so this thing has a snowball effect.
01:13That's why recently in the parliament,
01:16I had a meeting with several agencies
01:18and also with the insolvency office under my control.
01:24Indeed, it will be an initiative of the insolvency office
01:27under the Law Enforcement Department for the 2025 segment
01:31to focus on the second chance for companies.
01:34Because the aspiration of the second chance,
01:37aside from the White Knight strategy,
01:39which means that there is a rescue for any parties
01:43who are interested in saving this company,
01:46or see how we can create a new or creative approach.
01:53So to kick off this program,
01:55to start, I have directed to create a convention
01:59together with all the agencies involved,
02:01with several stakeholders involved,
02:04so that we can make a national convention.
02:08And then after the national level,
02:11we will do it at the country level.
02:14I don't know in the aspect of the law,
02:16whether we want to look at the changes in the law
02:19to help or more to the structure.
02:21But the insolvency department in the AKPK for individuals,
02:25it is an agency to help credit individuals.
02:29So before it was put on the road to bankruptcy,
02:33it has a second chance.
02:34That's under the AKPK.
02:36So now companies in our country,
02:38sometimes when they are alone as a company,
02:41the first challenge is to control the creditors.
02:45This company is different from individuals.
02:48Individuals are easy to talk to,
02:51they are one-on-one,
02:52but this company is a company entity.
02:55Its approach is different.
02:57Secondly, the company's assets are sometimes more expensive
03:00than the creditors' debts.
03:02But because of the inability,
03:04it will also have an effect on the value of the asset.
03:08And finally,
03:09we must also look at the number of employees under the company.
03:12Because if the company is bankrupt,
03:14it will affect those who work under the company umbrella.
03:18So it's not just one company affected,
03:20the individual is one person.
03:22But this company has a lot of effects.
03:25That's why we have to make a convention
03:28with the agencies in charge,
03:30the agencies involved,
03:32and also the management.
03:34Because we need to monitor this.
03:37Maybe restructuring of the company.
03:40I also see a lot of small companies.
03:46I don't know the number,
03:48but I was informed by the insolvency office,
03:50the number is quite high.
03:53There are many processes for winding up.
03:56Unlike the US,
03:58it has a self-winding up system,
04:00called Chapter 11 and Chapter 13.
04:02That means the company can try to knock on the door
04:04to ask for help.
04:05That's why it's called Chapter 11 and Chapter 13.
04:07We don't have that system.
04:09We are a bank, creditors, and a company.
04:12So,
04:13the company is on its own.
04:15It's difficult.
04:17That's why the Minister of Finance
04:20has given a speech
04:23about the second base of opportunities for companies.
04:27That's all.
04:28Maybe,
04:30there is no figure,
04:31but maybe there is a target
04:32to save money for the first phase.
04:34I think for the bankruptcy,
04:35last year,
04:36we had released hundreds of thousands.
04:38So, for this company,
04:40the second base of opportunities,
04:41I see it more like
04:43pre and post-insolvency.
04:45Before it is bankrupted,
04:46winding up,
04:47and after that.
04:48So, there are two segments.
04:50But now,
04:52in 2025,
04:54we need to make changes to the company.
04:56If we look at the picture,
04:58many companies out there
04:59are facing the problem of
05:01being unable to pay their debts.