Blog
Regulation of Moneylending in Malaysia: Legal Framework and Key Provisions
The moneylending industry in Malaysia is governed by the Moneylenders Act 1951 (“the Act”), which outlines the legal framework for moneylending activities, defines the rights and obligations of both lenders and borrowers, and sets regulatory standards to prevent exploitative practices. This article provides an overview of the essential aspects of the Act, including the licensing process, interest rate limits, borrower protections, and the consequences of non-compliance.
Understanding Illegal Contracts – Lessons from Patel v Mirza and How It Applies in Malaysia
What happens when a contract is based on something illegal? Can you still enforce it? This question often confuses many people, especially when money or property is involved. In this blog post, we’ll break down the key legal principles from the famous UK case of Patel v Mirza and how Malaysian courts have applied these ideas in recent cases.
Defamation Law in Malaysia: What You Should Know
Defamation is when someone says or writes something that hurts another person’s reputation. In Malaysia, defamation is covered by the Defamation Act 1957 and common law (laws made by judges through court decisions).
This blog explains what defamation means, how to prove it, and the defenses you can use if someone accuses you of defamation.
Understanding Derivative Action and Minority Shareholders’ Oppression Under Malaysian Company Law 2016
In the corporate world, majority shareholders typically control the decisions of a company. However, Malaysian company law recognizes the need to protect minority shareholders from unfair treatment or actions that harm the company. Two primary legal remedies available are derivative action and minority shareholders’ oppression action. This. article explores the legal framework governing these remedies under the Companies Act 2016 (CA 2016) and outlines the conditions that must be satisfied for a successful claim.
Navigating Applications for Security for Costs: Balancing Justice, Timeliness, and Procedural Fairness
Security for costs is a powerful procedural tool in litigation, designed to protect a party from the financial risk of an unrecoverable legal expense. However, courts exercise their discretion with caution, ensuring that such applications are not misused to oppress or unfairly obstruct genuine claims or appeals. Several factors, including timeliness, notice, merits, and procedural fairness, guide the courts’ approach to such applications. Here is how these principles are applied:
Critical Review of the 2025 Amendments to Malaysia’s AML/CFT Framework
In 2025, Malaysia made major improvements to its legal system to strengthen the fight against financial crimes such as money laundering and the financing of terrorism. These changes were made through amendments to the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). The updated law now reflects international standards, especially those recommended by the Financial Action Task Force (FATF), an international body that sets global guidelines to combat financial crime.
Rent-to-Own: Opportunities, Risks, and Legal Implications
In recent years, rent-to-own (RTO) arrangements have gained popularity among individuals who want to own property or high-value goods but are not immediately able to afford them or secure financing. Whether it’s a home, car, or appliance, rent-to-own offers a middle path between renting and owning.
At first glance, it seems like an ideal solution you use the asset now, pay monthly, and eventually, you own it. However, what many do not realize is that rent-to-own agreements carry significant legal implications. Both buyers and sellers need to understand the risks, rights, and responsibilities involved before entering into such arrangements.