Latest news with #Cross-BorderInsolvencyBill
The Star
22-04-2025
- Business
- The Star
No running from insolvency
KUALA LUMPUR: The plan to introduce the Cross-Border Insolvency Bill is a positive step forward in enhancing Malaysia's legal and institutional frameworks for insolvency matters involving multiple jurisdictions, say experts. They also said that such a Bill is crucial as Asean economies are increasingly interlinked through trade, investments and supply chains. The Association of Banks in Malaysia (ABM) said strengthening efficiency in insolvency proceedings is key to improving transparency, especially where companies operate across borders and have assets in various countries. It said the government's alignment with internationally recognised standards, such as the model law of the United Nations Commission on International Trade Law (Uncitral) on cross-border insolvency, is a step that supports Malaysia's standing in the regional and global financial community. 'Efforts that improve creditor protection and facilitate effective corporate rehabilitation efforts are crucial in supporting business continuity and investor confidence, especially in today's interconnected economic landscape,' ABM said in an interview. It also said clear and practical guidelines for the recognition and coordination of cross-border insolvency proceedings should be included in the Bill. The association said the Bill also should promote effective judicial cooperation between Malaysia and foreign courts or representatives in insolvency matters. UCSI University Malaysia associate professor for finance Dr Liew Chee Yoong said the proposed Bill reflects a broader commitment to modernising Malaysia's insolvency laws by aligning them with international standards, such as Uncitral. 'By adopting its principles, Malaysia can promote greater legal certainty, streamline administrative procedures, and ensure the fair treatment of domestic and foreign creditors,' said Prof Liew, who is also a research fellow at the Centre for Market Education. He warned that with the absence of a structured cross-border insolvency framework, the risk of legal fragmentation, asset loss, and delayed debt recovery becomes significant. 'This Bill, therefore, enhances regional financial stability by providing a consistent legal mechanism for creditors to recover their claims, irrespective of where the assets are located.' Prof Liew noted that the proposed Bill is designed to support corporate rehabilitation efforts, and by recognising and integrating corporate rescue mechanisms. He said it signals a shift from a liquidation-centric model to one that prioritises business continuity and restructuring. 'This shift not only preserves economic value and jobs but also bolsters investor confidence in Malaysia as a reliable and resilient business environment. 'Additionally, allowing provisional relief such as asset freezes or preservation orders before full recognition of foreign proceedings can protect assets from being dissipated during legal delays. 'Provisions should be included to mandate training programmes for judges, legal professionals and insolvency practitioners to ensure effective and consistent application of the new law,' he added. Datuk Seri Azalina Othman Said had said local creditors of insolvent companies with assets within the Asean region may be able to recover their debts soon. The Minister in the Prime Minister's Department (Law and Institutional Reform) said this was among the measures that are being proposed under the Cross-Border Insolvency Bill to be tabled in Parliament this June.
New Straits Times
21-04-2025
- Business
- New Straits Times
Cross-Border Insolvency Bill to be tabled in June to aid asset recovery abroad
KUALA LUMPUR: The Cross-Border Insolvency Bill is set to be tabled during the next parliamentary sitting in June, with the aim of facilitating the recovery of overseas assets to settle the debts of bankrupt individuals. Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said that the proposed legislation was part of Malaysia's broader initiative to enhance cooperation with Asean countries in managing insolvency cases involving cross-border assets. "I have visited several Asean countries and held discussions with their law ministers, who have responded positively to the issue of insolvency. This law will help ensure that assets in bankruptcy cases are not left unresolved due to jurisdictional limitations," she said. She added that the bill would be a key priority in the upcoming parliamentary session, alongside other significant legislative proposals, including the Legal Aid and Public Defence Bill, the Whistleblower Protection (Amendment) Bill, and the Mediation (Amendment) Bill 2025. In February, Bernama reported that the government had formed a Cross-Border Insolvency Working Committee to align Malaysia's insolvency laws with international standards. Azalina said that the committee would review the adoption of the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency and advise on introducing a standalone act to govern cross-border insolvency matters in Malaysia. "The adoption of the model will strengthen the framework for managing cross-border insolvency, particularly with regard to assets held in multiple jurisdictions. "The proposed legislation will also support corporate rehabilitation efforts for local companies undergoing restructuring or corporate rescue," she said in a statement.
Free Malaysia Today
21-04-2025
- Business
- Free Malaysia Today
Cross-Border Insolvency Bill to be tabled in Parliament soon, says minister
Asean ministers have given positive feedback on the Cross-Border Insolvency Bill, according to Azalina Othman Said. (Facebook pic) PUTRAJAYA : The Cross-Border Insolvency Bill 2025, aimed at enabling the retrieval of overseas assets to clear the debts of bankrupts, will be tabled in Parliament soon, says law and institutional reform minister Azalina Othman Said. Azalina said the bill will be a priority in the upcoming parliamentary session, alongside several other key pieces of legislation, including the Legal Aid and Public Defence Bill, Whistleblower Protection (Amendment) Bill and the Mediation (Amendment) Bill 2025. 'This will prevent the overseas assets of bankrupt individuals from being left idle. They can be used to settle their debts to the creditors,' she told reporters at the ministry's Hari Raya Aidilfitri open house today. 'I have visited several Asean countries and met with their ministers. They have given me a very positive response on the issue of cross-border insolvency.' In February, Azalina announced the establishment of the Cross-Border Insolvency Working Committee to align the country's insolvency laws with international standards, Bernama reported. She said the committee would review the adoption of the United Nations Commission on International Trade Law Model Law on Cross-Border Insolvency and recommend a standalone act for cross-border insolvency in Malaysia. The report also noted that the model law would facilitate winding-up processes under the Companies Act 2016 when a company's assets and liabilities are in more than one country. On other legislative developments, Azalina said the Whistleblower Protection (Amendment) Bill aims to provide qualified witnesses with legal protection but disagreed with indefinite protection periods. She said any case related to a protected witness should be prioritised and resolved swiftly. 'The usual excuse for the witness to extend the protection period is 'the case is postponed'. But I disagree with that,' she said. Azalina added that the political financing bill and the proposal to limit the prime minister's service to two terms were still being studied. She said that while discussions with political party leaders had been positive, further studies are required before presenting a Cabinet paper on these matters. Azalina also addressed the call from Amnesty International for the abolition of the death penalty for drug-related offences, stating that a comprehensive study with all stakeholders is still needed. 'This issue also falls under the jurisdiction of the home ministry. We have a committee looking into alternative punishments for the offenders,' she said.
The Star
21-04-2025
- Business
- The Star
Cross-Border Insolvency Bill to be tabled soon, says Azalina
PUTRAJAYA: Local creditors of insolvent companies with assets within the Asean region may be able to recover their debts soon, says Datuk Seri Azalina Othman. The Minister in the Prime Minister's Department (Law and Institutional Reform) said that this is one of the measures proposed under the Cross-Border Insolvency Bill to be presented in Parliament this June. "With the Asean Law Forum to be held this August, I have also visited several Asean nations and met with their law and judicial ministers. "Their feedback has been very positive on cross-border insolvency," she told reporters during the Hari Raya Open House celebration here on Monday. (April 21). She emphasised the importance of securing commitment from Asean neighbours concerning issues related to the bankruptcy and insolvency of the affected companies. "This is to allow us to cooperate so that their assets will not be left idle and can be used to settle debts among creditors, and as such," she said. In February, Azalina and Domestic Trade and Cost of Living Minister, Datuk Armizan Mohd Ali issued a joint statement on the setting up of a Cross-Border Insolvency Working Committee to align the country's insolvency laws with international standards. Among the steps taken is the introduction of new laws to strengthen the cross-border insolvency management system, especially for assets that span multiple countries. The proposed law would also support corporate rehabilitation efforts for local companies undergoing corporate rescue mechanisms. It would also facilitate winding-up processes under the Companies Act 2016 when a company's assets and liabilities are in more than one country. The tabling of the Bill comes as Malaysia plans to adopt the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency.
New Straits Times
21-04-2025
- Politics
- New Straits Times
Bill to address delays in cases involving protected witnesses
KUALA LUMPUR: The Whistleblower Protection (Amendment) Act will be among the bills to be tabled at the upcoming Dewan Rakyat session. Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said said the amendment aims to strengthen protection mechanisms and ensure swift case resolutions involving key witnesses. Azalina said this was to avoid prolonged delays in cases involving protected witnesses. "There have been cases where witnesses under protection were kept for years without their cases being concluded. This is something with which I disagree. "If someone is granted witness protection, it should be our priority to resolve the case as soon as possible. Otherwise, it doesn't make sense to categorise them under protection for an extended period," she said. Azalina added that two other bills will also be tabled, relating to legal aid and the other on cross-border insolvency. "The Legal Aid Bill is aimed at ensuring vulnerable groups receive the legal support they need, while the Cross-Border Insolvency Bill will address issues of abandoned assets involving foreign entities." She added that the proposed insolvency law was part of Malaysia's effort to cooperate more effectively with Asean countries in managing corporate bankruptcies involving cross-border assets. "I've visited several Asean countries to meet with their law ministers, and the responses have been positive.
