PUTRAJAYA: A cross-border insolvency legal framework will ensure that Malaysia is equipped to handle insolvency cases involving multiple countries, says the government.
The Legal Affairs Division (BHEUU) of the Prime Minister’s Department said the Cross-Border Insolvency Bill 2025 aims to facilitate foreign access to Malaysian courts, recognise international proceedings and foster judicial cooperation.
Once passed, companies with debts to be paid will not only have its local entity be liable, but its foreign branches too.
The law would also apply to foreign companies in debt overseas but with branches in Malaysia.
Currently, companies can claim they are…