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BUSINESS • 29/07/2025 05:39 PM

Cross-border Insolvency Bill 2025 Supports Efforts To Attract FDI, Strengthen National Economy - Azalina

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.

“It provides legal certainty to investors and stakeholders by establishing clear procedures regarding the recognition of foreign proceedings, court access, and the granting of relief.

“This bill supports efforts to rescue viable businesses in line with the recent amendments to the Companies Act 2016, thereby safeguarding investments and people’s jobs,” she said.

-- BERNAMA

 

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