Madani Government's Economic Reform To Boost Investor Confidence, Says Azalina

KUALA LUMPUR, July 31 (Bernama) -- The Cross-Border Insolvency Bill 2025 will boost investor confidence and align Malaysia with global business standards, said Minister in the Prime Minister’s Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said.

She said the bill has been passed by a majority voice vote in the Dewan Rakyat on July 29, and will be brought to the Dewan Negara next.

“For many people outside the business sector, the meaning of cross-border insolvency may not be clear. However, for those involved in business, it is extremely important for a growing country like Malaysia.”

The minister said this in her keynote address at the Islamic Arbitration Conference 2025: Advancing Islamic Arbitration on the New Global Frontiers at the Asian International Arbitration Centre (AIAC) today.

Azalina said the reform demonstrates Malaysia’s commitment to keeping pace with international practices.

“My biggest point when we speak about cross-border insolvency is its ability to give great confidence to investors. We need that to show that Malaysia will not be left behind,” she said.

As a country with a long-standing commitment to Shariah-compliant development, Azalina said Malaysia is exceptionally well-placed to lead the global effort in Islamic arbitration, having pioneered areas such as Islamic finance, banking, and Islamic governance frameworks.

“In the Islamic finance and banking sector, complex cross-border financial transactions often involve hybrid legal instruments, multiple regulatory frameworks and stakeholders who demand certainty not only from a legal perspective but also from a Shariah compliance standpoint.

“We must now leverage this strong foundation to expand our influence across other interrelated sectors and fortify our leadership in Shariah-based Alternative Dispute Resolution (ADR),” she said while extending her best wishes to the AIAC for embarking on another landmark initiative with the creation of the Islamic mediation rules.

Meanwhile, AIAC chief executive officer Datuk Almalena Sharmila Johan said the increasing scale and complexity of cross-border commerce have heightened the need for dispute resolution mechanisms that are both effective and culturally attuned.

“In addition to the i-Arbitration Rules 2023 and the Islamic Standard Form of Building Contract (i-SFC 2024), I’m pleased to note that preparations are underway to launch the 2025 Suite of Rules, which will feature an updated version of the i-Arbitration Rules in line with the establishment of the AIAC Court of Arbitration.

“These instruments are positioned as transformative tools designed to address existing gaps and provide practical, enforceable and Shariah-compliant solutions for global users,” she added.

-- BERNAMA