SECOND CHANCE POLICY: CIVIL SERVANTS URGED TO IMPROVE FINANCIAL HEALTH

KUALA LUMPUR, July 10 (Bernama) -- Civil servants who have been released from bankruptcy by the Malaysian Department of Insolvency (MDI) through the Second Chance Policy are urged to fully 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 Dr Adnan Mat said the policy is a golden opportunity for civil servants with high debt problems to restructure their finances and enhance their quality of life.

“Cuepacs sincerely hopes that everyone, especially civil servants who have been given this second chance, will take this opportunity to improve themselves so that they do not fall into debt problems again, which could ultimately lead to being declared bankrupt once more.

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“This policy is not only a golden opportunity for civil servants but also an act of compassion from the government, which clearly 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 designed to protect the welfare of individuals burdened by small-scale debts, that provides a pathway out of bankruptcy under specific criteria, effective from March 1, 2023.

When tabling the 2024 Budget last year, Prime Minister Datuk Seri Anwar Ibrahim said the Second Chance Policy would be extended to young people aged 40 and below with debts not exceeding RM200,000 starting this year.

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Elaborating further, Adnan said that heads of services and Integrity Department heads in ministries must play a role in ensuring that civil servants do not fall into debt problems and safeguard their welfare.

He added that bankruptcy cases in public service could lead to misconduct and a decline in productivity, as civil servants are stressed by financial problems.

“The number of civil servants currently in bankruptcy status is 3,265 out of 1.62 million civil servants,” he said.

Meanwhile, Adnan expressed satisfaction with the proposed salary adjustment for civil servants, expected to be implemented by the end of this year.

“Cuepacs is confident that the aim for the lower-income group (lower-grade civil servants) to bring home at least RM2,000 will be achieved, providing some relief for their expenditure needs,” he said.

-- BERNAMA