“It can serve as a global practice for developed countries,” she said in her speech at the insolvency department’s 100th anniversary celebration here today.

Prime Minister Anwar Ibrahim, who also attended the event, expressed his pride in the department’s achievements.

“Within one year of the Insolvency (Amendment) Act 2023 coming into effect, the government has successfully exceeded the bankruptcy discharge target, reaching a total of 142,510 cases.

“The initial annual target was to discharge 130,000 bankrupts,” he said.

The legislation was amended last year to include provisions allowing a discharge from bankruptcy. Section 33C of the Insolvency Act 1967 was amended to facilitate the automatic discharge of bankrupts within a period of three to five years from the date they submit their statements of affairs.

The list of bankrupts eligible for discharge without going through the creditor’s objection procedure has also been amended to include two new categories: bankrupts who are 70 years old and above, as well as those who have been certified as mentally ill under the Mental Health Act 2001.