Malaysia Collection Profile

Malaysia-bnr

 

Collecting in Malaysia

  • Even though the payment behaviour of domestic companies is good, the law provides no framework when it comes to late payment.  As a result, interest rates and collection costs should be considered as part of the contract but often have little impact.

  • Despite recent efforts, the courts' independence and transparency still have margin for improvement and lawsuits - which can be slow and should be avoided whenever possible.  However, recent reforms have seen lawsuits disposed of fast.

  • In the absence of an efficient and working debt restructuration scheme, debtor insolvency would only be dealt with through liquidation proceedings, (and soon judicial management process, once the law comes into force) which generally results in low recovery chances for unsecured creditors.

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    malaysia

    Malaysia

    Collection complexity

    severe-2


    Collection relating to

    Payments
    $-3
    Court
    proceedings
    Gav-4
    Insolvency
    proceedings
    Arrow-4
     

    Publications about Malaysia

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