CROSS-BORDER INSOLVENCY ACT 2026

Cross-Border Insolvency LAWS OF MALAYSIA Act 877 CROSS-BORDER INSOLVENCY ACT 2026 1 2 Laws of Malaysia Act 877 Date of Royal Assent ... ... 20 January 2026 Date of publication in the Gazette ... ... 30 January 2026 Publisher’s Copyright C PERCETAKAN NASIONAL MALAYSIA BERHAD All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording and/or otherwise without the prior permission of Percetakan Nasional Malaysia Berhad (Appointed Printer to the Government of Malaysia). Cross-Border Insolvency 3 LAWS OF MALAYSIA Act 877 CROSS-BORDER INSOLVENCY ACT 2026 ARRANGEMENT OF SECTIONS Part I PRELIMINARY Section 1. Short title and commencement 2. Interpretation 3. Application 4. Act to be read together with other laws 5. Competent Court 6. Authorization of Malaysian insolvency office-holder to act in foreign State 7. Public policy exception 8. Additional assistance under other written laws Part II ACCESS OF FOREIGN REPRESENTATIVES AND FOREIGN CREDITORS TO COURTS IN MALAYSIA 9. Right of direct access 10. Limited jurisdiction 11. Application by foreign representative to commence proceedings under Malaysian insolvency law 12. Participation of foreign representative in proceedings under Malaysian insolvency law 13. Access of foreign creditor to proceedings under Malaysian insolvency law 14. Notification to foreign creditor of proceedings under Malaysian insolvency law 4 Laws of Malaysia Act 877 Part III RECOGNITION OF FOREIGN PROCEEDINGS AND RELIEF Section 15. Application for recognition of foreign proceedings 16. Presumptions of recognition 17. Decision to recognize foreign proceedings 18. Subsequent information 19. Relief that may be granted upon filing of application for recognition of foreign proceedings 20. Effects of recognition of foreign main proceedings 21. Relief that may be granted upon recognition of foreign proceedings 22. Protection of creditors and other interested persons 23. Actions to avoid acts detrimental to creditors 24. Intervention by foreign representative in proceedings in Malaysia Part IV COOPERATION WITH FOREIGN COURTS AND FOREIGN REPRESENTATIVES 25. Cooperation and direct communication between Court and foreign courts or foreign representatives 26. Cooperation and direct communication between Malaysian insolvency office-holder and foreign courts or foreign representatives 27. Forms of cooperation Part V CONCURRENT PROCEEDINGS 28. Commencement or continuation of proceedings under Malaysian insolvency law after recognition of foreign main proceedings 29. Coordination of proceedings under Malaysian insolvency law and foreign proceedings 30. Coordination in respect of more than one foreign proceedings 31. Presumption of insolvency based on recognition of foreign main proceedings 32. Rule of payment in concurrent proceedings Cross-Border Insolvency Part VI GENERAL Section 33. Power to make regulations 34. Power to amend Schedule 35. Saving Schedule 5 6 Laws of Malaysia Act 877 7 Cross-Border Insolvency LAWS OF MALAYSIA Act 877 CROSS-BORDER INSOLVENCY ACT 2026 An Act to provide for matters relating to cross-border insolvency including access to Court by foreign representatives and foreign creditors, recognition of foreign proceedings, granting of relief in relation to recognition of foreign proceedings, cooperation with foreign courts and foreign representatives, coordination of concurrent proceedings and other related matters. [ ] WHEREAS it is expedient to provide for matters relating to cross-border insolvency in accordance with the principles of the Model Law on Cross-Border Insolvency adopted by the United Nations Commission on International Trade Law (UNCITRAL) dated 30 May 1997 that was approved by the General Assembly of the United Nations on 15 December 1997; AND WHEREAS it is also expedient to provide for the establishment of an effective mechanism to deal with cases of cross-border insolvency to promote the following objectives: (a) cooperation between courts and other competent authorities in Malaysia and foreign States involved in cases of cross-border insolvency; (b) greater legal certainty for trade and investment; (c) fair and efficient administration of cross-border insolvencies that protects the interests of all creditors and other interested persons, including the debtor; 8 Laws of Malaysia Act 877 (d) protection and maximisation of the value of the debtor’s property; and (e) facilitation of the rescue of financially troubled businesses, thereby protecting investment and preserving employment; NOW, THEREFORE, IT IS ENACTED by the Parliament of Malaysia as follows: Part I PRELIMINARY Short title and commencement 1. (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. Interpretation 2. (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; 10 Laws of Malaysia Act 877 “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, 130 zb , 131, 131 a , 151 c and 151 d 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 Application 3. (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. 12 Laws of Malaysia Act 877 Act to be read together with other laws 4. 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. Competent Court 5. (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. Authorization of Malaysian insolvency office-holder to act in foreign State 6. (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. Public policy exception 7. 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 Additional assistance under othe