KUALA LUMPUR: The implementation of Cross-Border Insolvency Bill 2025 must uphold the sovereignty of local laws and safeguard the rights of domestic creditors.
Senator Datuk Ahmad Ibrahim said the Bill must also ensure that strategic state assets are not exposed to the risk of foreign interference in the event of cross-border insolvency proceedings.
“In the context of Sarawak, there are additional dimensions that must be considered.
“Sarawak has strategic companies such as PETROS, Sarawak Energy Berhad, and the Development Bank of Sarawak, which are engaged in international investments and partnerships,” he said during the debate on the second reading of the bill at Dewan Negara on Tuesday.
At the same time, he said, Small and Medium Enterprises (SMEs) in Sarawak are also engaged in trade with neighbouring countries, including Brunei, Indonesia and Singapore.
He stressed that if a foreign company faces insolvency, the rights of small creditors in Sarawak must also be fairly protected.
“In a broader context, through the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA), which covers Sarawak, Sabah, Brunei, Kalimantan, and Mindanao, Malaysia has the opportunity to position Kuching and Kota Kinabalu as hubs for cross-border legal settlements in the Borneo region,” he said.
Ahmad added that such a move would not only strengthen investor confidence but also elevate the role of Sarawak and Sabah as Malaysia’s gateways in regional economic cooperation.
