KUALA LUMPUR, July 10 — Civil servants released from bankruptcy by the Insolvency Department under the Second Chance Policy are urged to utilise the opportunity given by the government to improve their financial health.
Congress of Unions of Employees in the Public and Civil Services (Cuepacs) president Datuk Adnan Mat said the policy is a golden opportunity for civil servants with high debt to restructure finances and enhance their quality of life.
“Cuepacs sincerely hopes everyone, especially civil servants who have been given this second chance, will improve themselves so they do not fall into debt again, which could lead to being declared bankrupt once more.
“This policy is not only a golden opportunity for civil servants but also an act of compassion from the government, which considers and cares about the constraints faced by civil servants,” he told a press conference here today.
The Second Chance Policy is a government initiative to protect the welfare of those burdened by small-scale debts, and provides a pathway out of bankruptcy under specific criteria, effective March 1 last year.
When tabling Budget 2024 last year, Prime Minister Datuk Seri Anwar Ibrahim said the Second Chance Policy would be extended to those aged 40 and below with debts not exceeding RM200,000 from this year.
Adnan said managers and integrity officers must play a role in ensuring civil servants do not fall into debt and safeguarding their welfare.
He said bankruptcy cases in public service could lead to misconduct and a decline in productivity.
“The number of civil servants with bankruptcy status is 3,265 out of 1.62 million civil servants,” he said.
— Bernama
