This page tracks the change from announcement to commencement. We will update it as each step happens.
The RM150,000 bankruptcy threshold was announced in Budget 2027 (9 October 2026, speech paragraph 80) for "beginning 2027". It is not yet law: no amending bill, gazette or commencement date has been published. Until the Insolvency Act 1967 is amended, the minimum debt for a creditor's bankruptcy petition remains RM100,000. The RM50,000 winding-up threshold under section 466 of the Companies Act 2016 is unchanged. We will update this page when the amendment is gazetted.
Where things stand
| Step | Status (16 Oct 2026) |
|---|---|
| Policy announced | Done: Budget 2027 speech, 9 October 2026, paragraph 80 (Budget 2027 speech (PMO)) |
| Amending bill or order published | Not found |
| Passed by Parliament (if a bill) | Not applicable yet |
| Royal Assent and gazette | Not found |
| Commencement date | Not set; the speech says only "beginning 2027" |
How a Malaysian law change normally happens
- Announcement. A minister states the policy, here in the Budget speech.
- Drafting. The ministry and the Attorney General's Chambers draft the amendment.
- Parliament. If the change needs an Act amendment, the bill is tabled and passed by the Dewan Rakyat and Dewan Negara.
- Royal Assent and gazette. The Act is assented to and published in the Federal Gazette.
- Commencement. The Act, or a minister's order under it, fixes the date it comes into force. This can be later than the gazette date.
The threshold sits in the Insolvency Act 1967. We expect it to need an amendment or an order made under the Act; that is our reading, not something the government has stated.
The precedent
The previous increase, from RM50,000 to RM100,000, was reported to have been gazetted in late 2020 and to have commenced in September 2021, per secondary reporting by RinggitPlus. If the pattern repeats, there may be months between gazette and commencement. "Beginning 2027" should not be read as 1 January 2027.
What to watch for
- An Insolvency (Amendment) Bill on the Parliament order paper.
- A notice in the Federal Gazette.
- A statement from the Malaysian Department of Insolvency.
- Transitional provisions: whether bankruptcy notices or petitions already filed continue under RM100,000.
What creditors should do in the meantime
If an individual owes you between RM100,000 and RM150,000, the current threshold still lets you proceed. Check whether you have a judgment, and whether a bankruptcy notice can be issued before commencement. The process is in our bankruptcy notice guide. If you are owed less, use enforcement routes; see debt below the bankruptcy threshold.
For the full context, read what Budget 2027 means for creditors and our bankruptcy threshold guide. Media coverage of the announcement: The Star, Bernama, NST, Fintech News Malaysia.
Use our debt claim calculator to check whether your claim, with interest, crosses RM100,000, or ask our debt recovery service team to review it.
Frequently asked questions
Is the RM150,000 bankruptcy threshold in force?
No. As of 16 October 2026 it has been announced only. RM100,000 still applies.
Will it start on 1 January 2027?
Not necessarily. The speech says "beginning 2027"; the actual date will be set by the amending law or a commencement order.
What happens to petitions filed before the change?
That depends on transitional provisions in the amendment, which have not been published.
Where will the change be published?
In the Federal Gazette, after the amendment is passed or the order is made.