PUTRAJAYA: Local creditors of insolvent companies with assets within the Asean region may be able to recover their debts soon, says Datuk Seri Azalina Othman.
The Minister in the Prime Minister's Department (Law and Institutional Reform) said that this is one of the measures proposed under the Cross-Border Insolvency Bill to be presented in Parliament this June.
"With the Asean Law Forum to be held this August, I have also visited several Asean nations and met with their law and judicial ministers.
"Their feedback has been very positive on cross-border insolvency," she told reporters during the Hari Raya Open House celebration here on Monday. (April 21).
She emphasised the importance of securing commitment from Asean neighbours concerning issues related to the bankruptcy and insolvency of the affected companies.
"This is to allow us to cooperate so that their assets will not be left idle and can be used to settle debts among creditors, and as such," she said.
In February, Azalina and Domestic Trade and Cost of Living Minister, Datuk Armizan Mohd Ali issued a joint statement on the setting up of a Cross-Border Insolvency Working Committee to align the country’s insolvency laws with international standards.
Among the steps taken is the introduction of new laws to strengthen the cross-border insolvency management system, especially for assets that span multiple countries.
The proposed law would also support corporate rehabilitation efforts for local companies undergoing corporate rescue mechanisms.
It would also facilitate winding-up processes under the Companies Act 2016 when a company's assets and liabilities are in more than one country.
The tabling of the Bill comes as Malaysia plans to adopt the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency.
