Latest news with #ModelLawonCross-BorderInsolvency
Barnama
31-07-2025
- Business
- Barnama
MIA And MICPA Applaud Landmark Cross-Border Insolvency Law Aligning Malaysia With Global Standards
KUALA LUMPUR, July 31 (Bernama) -- The Malaysian Institute of Accountants (MIA) and The Malaysian Institute of Certified Public Accountants (MICPA) proudly welcome the recent passage of the Cross Border Insolvency Bill in the Dewan Rakyat, which adopts the Model Law on Cross-Border Insolvency (Model Law) developed by the United Nations Commission on International Trade Law. This landmark legislation marks a significant step forward in aligning Malaysia's insolvency framework with international best practices. By adopting the Model Law, the Bill establishes a robust legal mechanism for cooperation between Malaysian courts and foreign jurisdictions in insolvency matters, enhancing transparency, predictability, and fairness in cross-border insolvency proceedings.
The Sun
29-07-2025
- Business
- The Sun
Cross-Border Insolvency Bill 2025 boosts FDI and economic stability
KUALA LUMPUR: The Cross-Border Insolvency Bill 2025 has been passed by the Dewan Rakyat, marking a significant step in Malaysia's efforts to attract foreign direct investments (FDI) and reinforce 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
Barnama
29-07-2025
- Business
- Barnama
Cross-border Insolvency Bill 2025 Supports Efforts To Attract FDI, Strengthen National Economy
BUSINESS KUALA LUMPUR, July 29 (Bernama) -- The enactment of the Cross-Border Insolvency Bill 2025 is expected to support Malaysia's long-term goal of attracting foreign direct investments (FDI) as well as strengthening the nation's economic stability. Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said, in her winding-up speech on the bill, said it reflects Malaysia's commitment to progressive international legal standards. The bill is also expected to enhance Malaysia's position as an investor- and trade-friendly country in line with the challenges and demands of globalisation, she said. 'By recognising standard global principles such as the Model Law on Cross-Border Insolvency (MLCBI), Malaysia will gain more confidence from foreign investors in terms of the clarity, transparency, and effectiveness of cross-border insolvency dispute resolution. 'This will help investors know what to expect when facing any financial risk, thereby increasing foreign investor confidence to invest and expand their businesses in Malaysia,' she said. The Dewan Rakyat today passed the Cross-Border Insolvency Bill 2025, which aims to establish an effective mechanism for managing cross-border insolvency cases. The bill was passed by a majority voice vote after being debated by 11 members of Parliament from both the government and opposition. Earlier, when tabling the bill for its second reading, Azalina said cross-border insolvency in the corporate context refers to insolvency proceedings involving companies experiencing financial distress and unable to repay their debts, with creditors and assets located in more than one country. She explained that the bill promotes formal cooperation between courts and insolvency authorities in Malaysia and other countries, which previously depended only on the principle of comity.
New Straits Times
29-07-2025
- Business
- New Straits Times
Dewan Rakyat passes Cross-Border Insolvency Act 2025
KUALA LUMPUR: The Dewan Rakyat today passed the third reading of the Cross-Border Insolvency Act 2025, which provides a long-awaited legal framework to govern cross-border insolvency proceedings in Malaysia. The Act incorporates international principles from the 1997 United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency, whhich will increase cooperation between courts and authorities in Malaysia and other nations involved in cross-border insolvency. The bill was passed at its third reading after being debated by 11 members of the lower house of parliament. Cases on cross-border insolvency currently operate on the practice of the courts to recognise foreign court decisions or proceedings on the basis of mutual understanding – the doctrine of comity – and on cooperation using the principle of reciprocity, said Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said in parliament today. The absence of such law had caused delays in the implementation of corporate rescue mechanisms or company winding-up proceedings. Previously, the assets of the companies involved were also at risk of being hidden or transferred to inappropriate parties, which may affect the collection and production of assets for the benefit of creditors, debtors and stakeholders and reduce foreign investor confidence.
New Straits Times
28-07-2025
- Business
- New Straits Times
Bill adopting UN model law on cross-border insolvency tabled
KUALA LUMPUR: A bill incorporating international principles on cross-border insolvency was tabled for its first reading in the Dewan Rakyat today, aimed at increasing cooperation between courts and authorities in Malaysia and other nations involved in cross-border insolvency. Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said tabled the bill, which adopts the main principles of the 1997 United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency. Its preamble states that the bill is intended to protect the interests of creditors, debtors and relevant parties while preserving and maximising the value of the debtor's assets. It also seeks to facilitate the rescue of financially distressed businesses to safeguard investments and preserve jobs. However, the bill does not apply to the insolvency or bankruptcy of individuals under the Insolvency Act 1967, limited liability partnerships (LLPs) and foreign LLPs under the LLP Act 2012, among others.
