In forceUpdated to 30 Jan 2026Read it in Bahasa Malaysia

Contents

Act of Parliament · Updated to 30 Jan 2026 · 6 parts

Cross-Border Insolvency Act 2026

Feedback & supportCross-border insolvency and dealing with foreign proceedings

Part I

Preliminary

Official textFrom Laws of Malaysia Online, unchanged

s 1Short title and commencement

(1)

This Act may be cited as the Cross-Border Insolvency

Act 2026.

(2)

This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette.

s 2Interpretation

(1)

In this Act, unless the context otherwise requires—

“establishment” means any place where the debtor has property, or any place of operations where the debtor carries out a non-transitory economic activity with human means and property or services;

“Court” means the Court as referred to in section 5;

“foreign court” means a judicial or other authority competent to control or supervise foreign proceedings;

“Minister” means the Minister charged with the responsibility for law;

Cross-Border Insolvency 9

“Malaysian insolvency office-holder” means—

(a)

the Official Receiver as defined in section 2 of the

Companies Act 2016 [Act 777];

(b)

a person appointed under the Companies Act 2016

to act in any of the following capacities:

(i)

liquidator or interim liquidator, whether in a compulsory or voluntary winding up;

(ii)

judicial manager or interim judicial manager in judicial management;

(iii)

nominee or supervisor of a corporate voluntary arrangement; or

(iv)

representative of a scheme of compromise or arrangement;

(c)

a person approved under the Labuan Companies Act 1990

[Act 441] as an approved liquidator;

(d)

any other person appointed by the Court under subsection 6(2)

to act in a foreign State on behalf of any proceedings; or

(e)

any other such person or body recognized under any written law in Malaysia in a collective judicial or administrative proceedings in Malaysia, including interim proceedings, under the law relating to insolvency in which proceedings the property and affairs of the debtor are subject to control or supervision by the Court, for the purposes of reorganization or liquidation;

“debtor” means—

(a)

a corporation as defined in section 3 of the Companies

Act 2016 but does not include limited liability partnership and foreign limited liability partnership; or

(b)

a corporation as defined in section 2 of the Labuan

Companies Act 1990;

“foreign proceedings” means collective judicial or administrative proceedings in a foreign State, including interim proceedings, under the law relating to insolvency in which proceedings the property and affairs of the debtor are subject to control or supervision by a foreign court, for the purposes of reorganization or liquidation;

“foreign non-main proceedings” means foreign proceedings other than foreign main proceedings taking place in a foreign State where a debtor has an establishment;

“foreign main proceedings” means foreign proceedings taking place in a foreign State where the debtor has its centre of main interests;

“Malaysian insolvency law” means—

(a)

this Act;

(b)

subdivisions 2 and 3 of Division 7 of Part III, Division 8

of Part III, and Parts IV and V of the Companies Act 2016;

(c)

sections 74, 127, 130zb, 131, 131a, 151c and 151d of the Labuan Companies Act 1990;

(d)

any subsidiary legislation made under this Act, the Companies Act 2016, the Labuan Companies Act 1990

and the Courts of Judicature Act 1964 [Act 91]; and

(e)

the common law of Malaysia relating to or in connection with any provision of this Act, the Companies Act 2016, the Labuan Companies Act 1990 and the Courts of Judicature Act 1964 or any provision of any subsidiary legislation made under this Act, the Companies

Act 2016, the Labuan Companies Act 1990 and the Courts of Judicature Act 1964;

“foreign representative” means a person or body appointed, including a person or body appointed on an interim basis, and authorized in foreign proceedings to administer the reorganization or liquidation of a debtor’s property or affairs or to act as a representative of the foreign proceedings.

(2)

In interpreting this Act, regard shall be had to its international origins and to the need to promote uniformity in its application and the observance of good faith.

Cross-Border Insolvency 11

s 3Application

(1)

This Act shall apply where—

(a)

assistance is sought in Malaysia by a foreign court or foreign representative in connection with foreign proceedings;

(b)

assistance is sought in a foreign State in connection with proceedings under Malaysian insolvency law;

(c)

foreign proceedings and proceedings under Malaysian insolvency law in respect of the same debtor are taking place concurrently; or

(d)

creditors or other interested persons in a foreign State have an interest in applying for the commencement of, or participating in, proceedings under Malaysian insolvency law.

(2)

This Act shall not apply to—

(a)

insolvency and bankruptcy of an individual under the Insolvency Act 1967 [Act 360];

(b)

any person carrying on a registered business or licensed business under—

(i)

the Registration of Businesses Act 1956 [Act 197];

(ii)

the Trades Licensing Ordinance [Sabah Cap. 144];

(iii)

the Businesses, Professions and Trades Licensing

Ordinance [Sarawak Cap. 33]; and

(iv)

the Business Names Ordinance [Sarawak Cap. 64];

(c)

any limited liability partnership and foreign limited liability partnership under the Limited Liability Partnerships Act 2012

[Act 743]; and

(d)

any person as specified in Part I of the Schedule.

s 4Act to be read together with other laws

This Act shall be read together with any other written laws relating to insolvency and related matters and the provisions of this Act shall be in addition to, and not in derogation of, the provisions of such other written laws.

s 5Competent Court

(1)

The functions in relation to recognition of foreign proceedings and cooperation with foreign courts under this Act shall be performed by the High Court in Malaya or the High Court in Sabah and Sarawak, as the case may be.

(2)

Notwithstanding any provision of this Act, the Court shall not recognize any foreign proceedings, grant any relief, or modify any relief that has already been granted, or provide any cooperation or coordination under this Act, if and to the extent that such recognition, relief, modified relief, cooperation or coordination would, in the case of proceedings under any written law be prohibited by or interfere with or be inconsistent with the provisions in relation to restrictions specified in Part II of the Schedule.

s 6Authorization of Malaysian insolvency office-holder to act in foreign State

(1)

A Malaysian insolvency office-holder is authorized to act in a foreign State on behalf of proceedings under Malaysian insolvency law as permitted by the applicable law of the foreign

State.

(2)

The Court may, upon application, appoint any other person to act in a foreign State on behalf of proceedings under Malaysian insolvency law as permitted by the applicable law of the foreign

State.

s 7Public policy exception

Nothing in this Act shall prevent the Court from refusing to take any action or grant any order or relief under this Act if the taking of such action or the granting of such order or relief would be contrary to the public policy of Malaysia.

Cross-Border Insolvency 13

s 8Additional assistance under other written laws

Nothing in this Act limits the power of the Court or a Malaysian insolvency office-holder to provide additional assistance to a foreign representative under other written laws.

Part II

Access of Foreign Representatives and Foreign Creditors to Courts in Malaysia

Read on from Part II

Part III

Recognition of Foreign Proceedings and Relief

Read on from Part III

Part IV

Cooperation with Foreign Courts and Foreign Representatives

Read on from Part IV

Part V

Concurrent Proceedings

Read on from Part V

Part VI

General

Read on from Part VI