KUALA LUMPUR, July 28 — The Cross-Border Insolvency Bill 2025, aimed at establishing an effective mechanism for handling cross-border insolvency cases, was tabled for its first reading in the Dewan Rakyat today.
Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said, when presenting it, said the bill’s second reading will also take place during the present parliamentary session.
According to the blue copy of the bill distributed in Parliament, the bill, which contains 35 clauses, aims to provide provisions, including access by foreign representatives and foreign creditors to courts, recognition of a foreign proceeding, granting of relief on recognition of a foreign proceeding, cooperation with foreign courts and foreign representatives, and coordination of concurrent proceedings.
Clause 11 of the Cross-Border Insolvency Bill 2025 aims to provide for a foreign representative, authorised in either a foreign main or non-main proceeding, to apply to begin an insolvency proceeding under Malaysian insolvency law.
It also provides for the right of a foreign representative, on recognition of foreign proceedings, to participate in proceedings regarding the debtor under Malaysian insolvency law.
Meanwhile, Clause 22 seeks to protect creditors and other interested persons in the exercise of court powers under the proposed Act.
Clause 23 provides for actions to prevent acts detrimental to creditors in the context of cross-border insolvency.
On cooperation with foreign courts and foreign representatives, Clause 25 has a provision that the court shall cooperate with foreign courts or foreign representatives directly or through a Malaysian insolvency office bearer.
Clause 29, involving the provision for concurrent proceedings, covers the coordination of an insolvency proceeding under Malaysian law and a foreign proceeding concurrently. — Bernama
