Azalina also welcomed three initiatives to strengthen the Second Chance Policy, following efforts that have helped more than 250,000 Malaysians exit bankruptcy since 2023.
PETALING JAYA: Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said has welcomed the government’s commitment to study the establishment of a Malaysian Law Reform Commission, alongside measures to expand bankruptcy relief and strengthen institutional reforms under Budget 2027.
The proposed commission would identify outdated laws, address legislative gaps and modernise laws relating to contracts, the sale of goods and mediation, she said in a statement today.
Azalina also welcomed three initiatives to strengthen the Second Chance Policy, following efforts that have helped more than 250,000 Malaysians exit bankruptcy since 2023.
“Under the initiatives, the bankruptcy threshold will be raised from RM100,000 to RM150,000 from 2027.
“The policy will also be extended to primary caregivers of family members with disabilities, chronic illnesses and elderly relatives, as well as gig workers and individuals with irregular incomes,” she said.
The government will also strengthen automatic discharge provisions under Section 33C of the Insolvency Act 1967, allowing eligible individuals to be discharged from bankruptcy as early as three years.
Azalina said the proposed commission would support comprehensive and continuous legal reform, building on efforts to restore parliamentary autonomy, strengthen parliamentary select committees and introduce Prime Minister’s Question Time (PMQT).
She added that the government remained committed to further reforms, including limiting the prime minister’s tenure and separating the roles of the Attorney-General and Public Prosecutor.
Although the proposal to limit the prime minister’s tenure had not secured the required two-thirds parliamentary majority, Azalina said the government’s commitment to reform remained firm while respecting parliamentary democratic processes.
Azalina also welcomed the expansion of individual lifestyle tax relief to cover pet vaccination costs and the adoption of animals from registered centres, saying it would encourage responsible pet ownership.
As Pengerang MP, she welcomed PETRONAS taking full ownership of the Pengerang Integrated Complex, saying the move would strengthen the country’s fuel supply security.
She said the development of the Pengerang Biorefinery in partnership with Enilive, Eni and Euglena would create economic opportunities and high-value jobs through the production of lower-carbon fuels, including sustainable aviation fuel (SAF), hydrotreated vegetable oil (HVO) and bionaphtha.
Azalina said Budget 2027 demonstrated that reform was not merely about changing laws and institutions, but also about delivering tangible benefits to the people and securing the country’s future.
