After receiving the Royal Assent on 10 May 2017, the Bankruptcy (Amendment) Bill 2016 (Bill) has finally come into force in Malaysia on 6 October 2017, marking the dawn of the new Malaysian Bankruptcy regime.

As highlighted in our previous November 2016 Client Alert, the Bill will rename the existing Bankruptcy Act 1967 to the Insolvency Act 1967 and will also have important implications, specifically to financial institutions and corporates whose loans / debts are secured by personal guarantees.

On 21 November 2016, the Bankruptcy (Amendment) Bill 2016 (Bill) was tabled in Parliament. The Bill will rename the Bankruptcy Act 1967 to the Insolvency Act 1967 and will have important implications, in particular to financial institutions and corporates whose loans / debts are secured by personal guarantees, once their amendments are incorporated in the existing Bankruptcy Act 1967 (Act) and are passed and in force.

Imagine you are the CEO of company sitting across from an interviewer. The interviewer asks you the age old question, “So tell me about your company’s strengths and weaknesses?” You start thinking about your competitive advantages that distinguish you from competitors. You decide to talk about how you know your customers better than the competition, including who they are, what they need, and how your products and services fit their needs and desires. The interviewer, being somewhat cynical, asks “Aren’t you worried about the liabilities involved with collecting all that data?”