KUALA LUMPUR: The newly passed Cross-Border Insolvency Bill 2025 is set to enhance investor confidence and align Malaysia with international business practices, according to Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.
The bill, approved by a majority voice vote in the Dewan Rakyat on July 29, will next be presented to the Dewan Negara. Azalina highlighted its significance for Malaysia’s economic growth, stating, “For many outside the business sector, cross-border insolvency may not be clear. But for businesses, it is crucial for a developing nation like Malaysia.”
Speaking at the Islamic Arbitration Conference 2025 at the Asian International Arbitration Centre (AIAC), she emphasised that the reform reflects Malaysia’s dedication to keeping up with global standards. “This bill reassures investors that Malaysia is keeping pace with international practices,” she added.
Azalina also noted Malaysia’s leadership in Shariah-compliant sectors, including Islamic finance and banking. “Given our strong foundation, we must expand our influence in Shariah-based Alternative Dispute Resolution (ADR),” she said, commending AIAC’s new Islamic mediation rules.
AIAC CEO Datuk Almalena Sharmila Johan highlighted the growing need for culturally sensitive dispute resolution in cross-border commerce. The centre is preparing to launch the 2025 Suite of Rules, including updated i-Arbitration Rules, to provide Shariah-compliant solutions for global users. - Bernama
