Cross Border Insolvency Bill Won T Undermine National Sovereignty Says Minister

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 Azalina Othman Said says any form of international cooperation will be subject to Malaysian law.
Azalina Othman Said said the cross-border insolvency legislation was crucial to ensure Malaysia remains relevant and trusted in an increasingly complex global economic landscape. (Bernama pic)KUALA LUMPUR: The Cross-Border Insolvency Bill 2025 will not undermine national sovereignty, says law and institutional reform minister Azalina Othman Said in addressing concerns from several MPs over possible interference by foreign courts
She told the Dewan Rakyat that any form of international cooperation would be subject to Malaysian law.
“This is a procedural law aligned with the United Nations Commission on International Trade Law Model Law on Cross-Border Insolvency, built on four key principles – access, assistance, recognition and coordination,” she said when winding up the debate on the bill’s second reading.
The bill aims to introduce a modern legal framework for handling insolvency proceedings involving entities with operations or assets across borders.
The bill, which aligns with international legal principles, is also part of efforts to attract more investment.
Azalina explained that cross-border insolvency referred to legal proceedings involving financially distressed corporate entities that were unable to pay their debts and had creditors or assets in more than one country.
“This legislation is crucial to ensure Malaysia remains relevant and trusted in an increasingly complex global economic landscape. Legal reform is essential to ensure incoming investments are effectively managed and regulated.
“This Cross-Border Insolvency Bill 2025 will play a key role in providing a conducive platform that is ‘feasible and at ease’ to support potential business and investment sectors in our country,” she said.
The bill was passed by the Dewan Rakyat today after being debated by 11 MPs. -FMT

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