Cross-Border Insolvency Bill 2025 boosts FDI and economic stability
Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said emphasised that the bill aligns Malaysia with progressive international legal standards.
'By adopting the Model Law on Cross-Border Insolvency (MLCBI), Malaysia demonstrates its commitment to transparency and efficiency in resolving cross-border insolvency disputes,' she said during her winding-up speech.
The bill, approved via a majority voice vote after debates involving 11 MPs, establishes a structured mechanism for handling insolvency cases involving multinational companies.
Azalina highlighted that the legislation provides clarity for investors facing financial risks, fostering greater confidence in Malaysia's business environment.
'Previously, cross-border insolvency relied on the principle of comity. This bill ensures formal cooperation between Malaysian courts and foreign insolvency authorities, offering legal certainty to stakeholders,' she explained.
The framework includes clear procedures for recognising foreign proceedings and granting relief, supporting business recovery efforts under the amended Companies Act 2016.
The move is expected to strengthen Malaysia's reputation as an investor-friendly hub, addressing globalisation challenges while safeguarding jobs and investments. – Bernama
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