On 9 September 2025, the Dewan Negara (Senate) passed the Cross-Border Insolvency Bill 2025 (“Bill“), completing the legislative process for Malaysia’s adoption of the UNCITRAL Model Law on Cross-Border Insolvency.
This development follows our earlier updates dated 29 July 2025, on the Bill’s passage in the Dewan Rakyat (available here), and 5 September 2025, which sets out the key features of the Bill (available here).
As currently drafted, the Bill applies only to insolvency proceedings involving corporate entities. However, the Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform) indicated that the door is not closed to the possibility of extending the framework to individual insolvency in the future.
The Bill will come into force on a date to be appointed by the Minister in charge of law, following Royal Assent and publication in the Gazette.
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