MIA AND MICPA APPLAUD LANDMARK CROSS-BORDER INSOLVENCY LAW ALIGNING MALAYSIA WITH GLOBAL STANDARDS
Released on: Thursday, 31 Jul 2025 10:20AM
Caption : Malaysian Institute of Accountants (MIA) & The Malaysian Institute Of Certified Public Accountants (MICPA)
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.
Key Impacts of this Legislation:
• Facilitates International Cooperation: The framework promotes collaboration between courts, insolvency practitioners, and regulators across borders, ensuring smoother coordination in complex multi-jurisdictional insolvency cases.
• Enhances Legal Certainty: Businesses and investors will benefit from greater clarity and consistency in how cross-border insolvency cases are handled, reducing legal risks and fostering confidence in Malaysia’s financial and legal systems.
• Protects Stakeholder Interests: The framework ensures fair and efficient administration of insolvency cases, safeguarding the rights of creditors, debtors, and other stakeholders.
• Supports Business Rescue and Asset Value Preservation: By enabling timely recognition of foreign proceedings and access to local courts, the law helps preserve the value of distressed businesses and assets, and promotes restructuring efforts that can save jobs and investments.
MIA and MICPA commend the Government and all stakeholders involved in the drafting and passage of this Bill in the Dewan Rakyat. We believe this legislation will strengthen Malaysia’s position as a competitive and reliable hub for international trade and investment.
We look forward to supporting the adoption and implementation of the new framework and working with our members to ensure its effective application in practice.
SOURCE: Malaysian Institute of Accountants (MIA)
FOR MORE INFORMATION, PLEASE CONTACT:
(MIA)
Name: Thane Meyyappan
Tel: +6012 248 9534
Email: communications@mia.org.my
(MICPA)
Name: Eileen Grace Lee
Tel: +6012 629 3309
Email: eileen@micpa.com.my
--BERNAMA
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.
Key Impacts of this Legislation:
• Facilitates International Cooperation: The framework promotes collaboration between courts, insolvency practitioners, and regulators across borders, ensuring smoother coordination in complex multi-jurisdictional insolvency cases.
• Enhances Legal Certainty: Businesses and investors will benefit from greater clarity and consistency in how cross-border insolvency cases are handled, reducing legal risks and fostering confidence in Malaysia’s financial and legal systems.
• Protects Stakeholder Interests: The framework ensures fair and efficient administration of insolvency cases, safeguarding the rights of creditors, debtors, and other stakeholders.
• Supports Business Rescue and Asset Value Preservation: By enabling timely recognition of foreign proceedings and access to local courts, the law helps preserve the value of distressed businesses and assets, and promotes restructuring efforts that can save jobs and investments.
MIA and MICPA commend the Government and all stakeholders involved in the drafting and passage of this Bill in the Dewan Rakyat. We believe this legislation will strengthen Malaysia’s position as a competitive and reliable hub for international trade and investment.
We look forward to supporting the adoption and implementation of the new framework and working with our members to ensure its effective application in practice.
SOURCE: Malaysian Institute of Accountants (MIA)
FOR MORE INFORMATION, PLEASE CONTACT:
(MIA)
Name: Thane Meyyappan
Tel: +6012 248 9534
Email: communications@mia.org.my
(MICPA)
Name: Eileen Grace Lee
Tel: +6012 629 3309
Email: eileen@micpa.com.my
--BERNAMA