Companies Commission of Malaysia raises indebtedness threshold for companies to RM50,000 on permanent basis, says ministerDomestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi in a statement today said the initiative was in the wake of the global and domestic economic situation, which may take longer to recover from the slowdown due to the Covid-19 pandemic.
He said the move to maintain the indebtedness threshold at RM50,000 which was introduced as a temporary measure on April 23, 2020, was aimed at reducing the burden and impact on companies facing cash flow problems to prevent them from winding up. Nanta said the RM50,000 indebtedness threshold was considered appropriate, as it was not too low, forcing companies to wind-up due to small amounts of debt, nor was it too high, which could burden smaller creditors for not being able to take action against companies in debt.
SSM had previously raised the threshold value under Section 466 of the Companies Act 2016 from RM10,000 to RM50,000 from April 23, 2020 to March 31, 2021, to assist companies affected by the Covid-19 pandemic.