KUALA LUMPUR: The Cross-Border Insolvency Act 2026 (Act 877) has come into force as of Aug 28.
In a joint statement on Tuesday (Sept1), Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said and Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the Act is in line with the government’s legal reform agenda.
"Act 877 provides a specific mechanism for handling insolvency proceedings involving debtors, assets, creditors, or proceedings in more than one jurisdiction.
"It is based on the United Nations Commission on International Trade Law (Uncitral) Model Law on Cross-Border Insolvency, adapted to Malaysia’s laws, judicial practices, economic circumstances and public interest considerations.
"The enforcement of this Act will improve the efficiency of managing cross-border insolvency cases.
"It will strengthen cooperation between courts and relevant authorities, enhance legal certainty, and protect the interests of creditors and stakeholders," the statement read.
It added that the Act will help maximise the value of a debtor’s assets and facilitate business rescue efforts to protect investments and preserve jobs.
"The Madani Government is committed to ensuring that Act 877 is implemented in an orderly, efficient and effective manner to strengthen economic resilience and Malaysia’s position as an international trade and investment destination," the statement added.
