Cross-Border Insolvency Act Strengthens National Legal Framework
KUCHING: The Cross-Border Insolvency Act 2026 (Act 877) is an important instrument in strengthening Malaysia’s legal framework for handling insolvency cases involving assets, debts, creditors and business operations across national borders.
The Act provides a legal framework to enhance international cooperation in insolvency proceedings, while helping to protect creditors’ interests and boost investor confidence in the country’s legal system.
The matter was discussed during a courtesy visit by a delegation from the Malaysian Department of Insolvency (MdI) to the Sarawak Governor, Tun Pehin Sri Dr Wan Junaidi Tuanku Jaafar, and Toh Puan Datuk Patinggi Fauziah Mohd Sanusi at the Astana Sarawak on Monday.
The delegation was led by MdI Deputy Director-General Abu Bakar Manat, who is also performing the duties of Malaysia’s Director-General of Insolvency briefed the Sarawak Governor on the implementation of the Act.
During the meeting, Tun Pehin Sri Dr Wan Junaidi shared his experience serving as Minister in the Prime Minister’s Department (Parliament and Law), particularly in relation to proposals to introduce new insolvency legislation in Malaysia.
He also stressed the importance of ensuring that the legal framework remained relevant and supported a conducive business environment, in line with the aspirations of the National Entrepreneurship Policy 2019.
Beyond legal matters, he expressed hope that MdI would continue to strengthen its role in providing advisory services, guidance and rehabilitation opportunities for individuals facing financial difficulties and indebtedness.
A balanced approach combining law enforcement with efforts to help individuals restore their financial standing was seen as important in enabling them to rebuild their lives, while ensuring that insolvency matters were managed efficiently and effectively.
The courtesy visit also aimed to introduce MdI’s senior management team to the Sarawak Governor.
Also present were Bankruptcy Division Insolvency Director Fajrul Shihar Abu Samah, Sarawak Insolvency Director Adibah Husna Zainal Abidin, Special Officer I to the Director-General of Insolvency and Head of the Corporate Communications Unit, Muhamad Syah Azlan Abdullah and Special Officer II to the Director-General of Insolvency, who also heads the Research and Legislation Section under the Policy and Legislation Division, Romzan Bujang. -UKASnews
