New initiative for financially distressed companies in the works, says Azalina

KOTA TINGGI: 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.

“We aim to offer a second opportunity to insolvent companies, allowing them to seek assistance from the government before being classified as bankrupt.

“The initiative, which the Insolvency Department will roll out, aims to create a safety net for small and large businesses struggling to cope with financial difficulties, especially in the aftermath of the Covid-19 pandemic.

“After the national convention, it could be expanded to the state level later in the year,” she said when met after the MyLesen handover programme held at a hotel in Bandar Penawar, here, on Saturday (Nov 9).

Azalina added that many businesses, particularly young entrepreneurs, face immense challenges.

This convention is expected to provide a platform for discussing innovative solutions and restructuring options for companies in distress.

In his Budget 2025 speech, Prime Minister Datuk Seri Anwar Ibrahim reiterated the importance of the Second Chance Policy, emphasising that it would now be extended to businesses that are unable to recover from their financial burdens.

“It has already helped nearly 170,000 Malaysians who were declared bankrupt to rebuild their lives,” said Anwar.