KUALA LUMPUR (Aug 24): Amendments will be made to legislation to enable businesses to remain competitive and to make Malaysia a preferred destination in doing business, said Domestic Trade and Consumer Affairs Ministry secretary-general Datuk Seri Hasnol Zam Zam Ahmad.
He said amendments to the Companies Act 2016 and the Limited Liability Partnerships Act 2012 will, among others, introduce new policies that can widen the scope of the provisions on the corporate rescue mechanisms.
The changes will also improve the current framework on corporate restructuring and insolvency, so that Malaysia’s legal framework will be reciprocal with international best practices, said Hasnol Zam Zam, who is also the chairman of the Companies Commission of Malaysia (SSM).
“As we continue to establish Malaysia as the preferred destination in doing business, it is imperative that timely measures are taken to improve the insolvency framework,” he said in his keynote address at the launch of the SSM National Conference 2021 (SSMNC2021) virtually today.
He also said that there is a need for a more comprehensive legal framework related to rehabilitation of business entities to ensure businesses remain competitive.
“Without a comprehensive legal framework, business entities such as companies and limited liability partnerships run the risk of being wound up when they face financial difficulties even though the business is in fact still viable,” he said.
Hasnol Zam Zam said the two amendment bills are being reviewed pending finalisation by the Attorney General’s Chambers (AGC) for tabling in Parliament.
The SSMNC2021 organised by SSM is a one-day virtual conference where subject matter experts from SSM will share their knowledge and experiences with participants.
SSM chief executive officer (CEO) Nor Azimah Abdul Aziz said the conference, which carries the theme “Governing under New Normal”, will cover topics such as the latest issues involving operations, policies and legislation.
“Our team will also share on the amendments proposed to the ‘Scheme of Arrangement’, ‘Insolvency’ and ‘Corporate Rescue Mechanisms’ under the Companies Act 2016,” she said.
The conference, which has attracted 2,000 participants, features four plenary sessions, namely “Governing under New Normal”, “Working with Remote Board”, “Beneficial Ownership Reporting” and “SSM Talks”.