Dispute Lawyers for Foreign Investors in Malaysia
Our dispute lawyers for foreign investors act for foreign shareholders, joint venture partners and foreign-owned companies in Malaysian courts and arbitrations, from shareholder, contract and employment disputes to enforcing foreign judgments and arbitral awards.
- Shareholder and JV disputes
- Foreign judgments and awards
- English, Malay or Mandarin
- Online consultations
How We Can Help
- Shareholder oppression and joint venture deadlock disputes
- Registering foreign judgments under REJA 1958
- Suing on judgments from China, Japan and South Korea
- Enforcing New York Convention arbitral awards
- Cross-border contract claims, debt recovery and freezing orders
- Employment disputes and regulatory investigations
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Reviewed by Ms. Khoo Ai Theng, Founder, Advocate & Solicitor of the High Court of Malaya. Last updated October 2026.
Why Choose Us?
15+ Years
Legal experience
6 Years
To apply to register a judgment, REJA s 4(1)
New York Convention
Foreign arbitral awards enforceable in Malaysia
3 Languages
English, Bahasa Malaysia and Mandarin consultations
Shareholder and joint venture disputes in foreign-owned companies
A foreign shareholder or joint venture partner in a Malaysian company has the same Companies Act 2016 (Act 777) remedies as any other member, because they depend on membership, not nationality or residence. The High Court hears these cases.
- Under s 346, a member or debenture holder may apply where the company’s affairs are conducted oppressively or in disregard of their interests, or where an act or resolution unfairly discriminates against or prejudices them.
- The court may make any order it thinks fit, including orders regulating the company’s future affairs, requiring other members or the company to buy the applicant’s shares, or winding it up (s 346(2)).
- A wrong done to the company itself, such as a director diverting its business, is generally pursued by a derivative action in the company’s name, with the court’s leave (s 347).
- Where shareholders are deadlocked or trust has broken down, a winding-up petition may rely on the just and equitable ground (s 465(1)(h)), and on s 465(1)(f) if directors acted in their own interests or unfairly to other members.
Start with the shareholders’ or joint venture agreement: its deadlock and exit clauses often shape the route, and an arbitration clause can lead the court to stay claims within its scope (s 10, Arbitration Act 2005). See our shareholder dispute guide.
How do I enforce a foreign court judgment in Malaysia?
There are two routes. Money judgments from the courts listed in the First Schedule to the Reciprocal Enforcement of Judgments Act 1958 (Act 99), or REJA, can be registered in the High Court. These courts are in the United Kingdom, Hong Kong SAR, Singapore, New Zealand, Sri Lanka, India (with territorial exclusions) and Brunei.
- The judgment must be final and conclusive, for money other than tax, a fine or a penalty, and registration must be sought within six years after its date or that of the last appeal judgment (ss 3(3) and 4(1)).
- The creditor applies ex parte under Order 67 of the Rules of Court 2012, and foreign currency is converted into ringgit at the rate on the judgment date (s 4(3)).
- The debtor may apply to set aside the registration on limited grounds such as lack of jurisdiction, fraud or public policy (s 5), and execution waits until that window closes or the application is decided (s 4(2)).
Judgments from other countries, including mainland China, Japan, South Korea and the United States, cannot be registered. The creditor sues on the judgment at common law, usually seeking summary judgment. It must be final, for a definite sum and from a court with jurisdiction, and strictly proved under the Evidence Act 1950 (Pembinaan SPK v Conaire Engineering, Federal Court, 2023).
How is a foreign arbitral award enforced in Malaysia?
Malaysia acceded to the 1958 New York Convention in 1985 and applies it to awards on commercial disputes made in other Convention States, including China, Japan and South Korea. Such awards are enforced through the High Court under ss 38 and 39 of the Arbitration Act 2005 (Act 646).
- The award holder applies by originating summons under Order 69 of the Rules of Court 2012, with the award and arbitration agreement or certified copies, and a certified English translation if needed (s 38).
- The award debtor has 14 days after service of the order to apply to set it aside, and enforcement waits until that period ends or any application is decided.
- Enforcement may be refused only on the grounds in s 39, such as an invalid arbitration agreement, lack of proper notice, an award set aside at the seat, non-arbitrability or public policy. Amendments to the Act from 1 January 2026 did not change s 39.
- The Federal Court held in ING Bank NV v Tumpuan Megah Development Sdn Bhd (2025) that a judgment entered on an award in a REJA country, such as England, may be registered under REJA instead.
The High Court can also order interim measures, such as preserving assets, before or during an international arbitration seated abroad (s 11). See our arbitration page.
Cross-border contract and debt claims, service abroad and freezing assets
A foreign company can sue in Malaysia, and Malaysian courts can hear claims against defendants abroad. Claims above RM1 million go to the High Court.
- Since 26 February 2026, international commercial cases registered at the Kuala Lumpur High Court that involve a company incorporated overseas go to its International Commercial and Admiralty Division (ICAD).
- Serving a writ on a defendant outside Malaysia needs the court’s leave under Order 11 of the Rules of Court 2012, on a good arguable case within the listed grounds.
- A claimant ordinarily resident outside Malaysia may be ordered to give security for the defendant’s costs (Order 23).
- A Mareva injunction can freeze a defendant’s assets in Malaysia before judgment where the claimant shows a good arguable case, assets within the jurisdiction and a real risk that they will be dissipated. The applicant must give an undertaking as to damages, and in real urgency can apply ex parte.
- A Malaysian company owing more than RM50,000 that it does not genuinely dispute can be served with a statutory demand under s 466(1)(a) of the Companies Act 2016; if it fails to pay, secure or compound within 21 days, a winding-up petition may follow.
The contract’s governing law, jurisdiction and arbitration clauses usually decide where a claim belongs. See our corporate debt recovery guide.
Employment disputes and regulatory investigations
Malaysian employment law protects staff of foreign-owned companies, expatriates included. In Ahmad Zahri bin Mirza Abdul Hamid v AIMS Cyberjaya Sdn Bhd (2020), the Federal Court held that citizenship has no bearing on whether employment is permanent or a dismissal justified.
- An employee who considers a dismissal to be without just cause or excuse may make a representation to the Director General of Industrial Relations within 60 days under s 20 of the Industrial Relations Act 1967; if conciliation fails, the case goes to the Industrial Court.
- For seconded expatriates, the first question is often who the true employer is: the Industrial Court has dismissed claims where it was a foreign parent company.
Regulators may also investigate:
- The Malaysia Competition Commission (MyCC) investigates cartels and abuse of dominance under the Competition Act 2010 (Act 712), including conduct abroad affecting a Malaysian market; penalties can reach 10% of worldwide turnover. See our competition law page.
- Under s 17A of the Malaysian Anti-Corruption Commission Act 2009, a company carrying on business in Malaysia, foreign or local, is liable for bribes given for its benefit by associated persons unless it proves adequate procedures. See our corporate fraud page.
- Since 1 June 2025, data controllers must report personal data breaches to the Personal Data Protection Commissioner. See our data protection page.
How NZSK acts for foreign investors and foreign-owned companies
We advise after a consultation, online or in person at our Puchong or Mont Kiara office, once we have reviewed the actual documents, not on a description alone. Consultations are in English, Bahasa Malaysia or Mandarin.
- Bring the shareholders’ or joint venture agreement, the company’s constitution, board and shareholder resolutions, the contract and key correspondence, and any foreign judgment or award, ideally as certified copies with translations.
- We check time limits first, such as the six-year REJA window and the 60 days for a dismissal claim, and what assets the other side holds in Malaysia.
- We then advise on the route: negotiation, a court claim or petition, registration or enforcement, or arbitration where the agreement requires it.
- Cost depends on whether the other side contests, the translations needed, any urgent freezing order and the enforcement steps. We give a fee quotation after the consultation.
Our Foreign Service Desk pages are written in Chinese, Japanese and Korean: the China Desk, the Japan Helpdesk and the Korea Desk. Partner Khoo Ai Theng (Maxine Khoo), an Advocate & Solicitor of the High Court of Malaya admitted in 2014, acts in civil and corporate litigation and leads our Employment & Industrial Relations practice. This page covers disputes: we do not handle company incorporation, licensing or other transactional work.
Frequently Asked Questions
Yes. In Malaysia, section 346 of the Companies Act 2016 allows any member or debenture holder of a Malaysian company to apply to the High Court where the company's affairs are conducted oppressively, in disregard of their interests, or in a way that unfairly discriminates against or prejudices them. Nationality and residence are not conditions. The court can make wide orders, including a buy-out of the applicant's shares or winding up the company.
The first step for a joint venture partner facing deadlock in a Malaysian company is to check the shareholders' or joint venture agreement for deadlock, buy-sell, exit and arbitration clauses. If the agreement does not resolve it, a shareholder may apply to the High Court under section 346 of the Companies Act 2016 for relief such as a buy-out, or petition to wind up the company on the just and equitable ground in section 465(1)(h).
In Malaysia, money judgments of the courts listed in the First Schedule to the Reciprocal Enforcement of Judgments Act 1958 can be registered in the High Court. The list covers the United Kingdom, Hong Kong SAR, Singapore, New Zealand, Sri Lanka, India (with territorial exclusions) and Brunei. The application must be made within six years after the date of the judgment, or of the last judgment on appeal, under section 4(1), and the judgment must be final and conclusive.
A judgment from mainland China, Japan or South Korea cannot be registered in Malaysia under the Reciprocal Enforcement of Judgments Act 1958, because those countries are not in its First Schedule. The creditor must sue on the judgment in a Malaysian court at common law. The judgment must be final, for a definite sum and properly proved: in 2023 the Kuala Lumpur High Court dismissed a claim on a Shanghai judgment only because it was not proved as the Evidence Act 1950 requires.
In Malaysia, an award made in a New York Convention State is enforced by a written application to the High Court under section 38 of the Arbitration Act 2005, by originating summons under Order 69 of the Rules of Court 2012, with the award and arbitration agreement or certified copies. The award debtor has 14 days after service of the order to apply to set it aside, and enforcement may be refused only on the limited grounds in section 39, such as public policy.
Yes. A Malaysian court can grant a Mareva injunction freezing a defendant's assets in Malaysia before judgment if the claimant shows a good arguable case, assets within the jurisdiction and a real risk that they will be dissipated. The applicant must give an undertaking as to damages, and in real urgency can apply ex parte. In support of an arbitration, including one seated abroad, the High Court can order interim measures under section 11 of the Arbitration Act 2005.
Generally yes, where the employer is the Malaysian company. In Malaysia, an employee who considers a dismissal to be without just cause or excuse may make a representation within 60 days under section 20 of the Industrial Relations Act 1967, and the Federal Court has held that citizenship does not affect whether a dismissal was justified. Where the real employer is a foreign parent company, the Industrial Court has dismissed claims. See our Industrial Court guide.
The cost of enforcing a foreign judgment or arbitral award in Malaysia depends on whether the judgment can be registered under the Reciprocal Enforcement of Judgments Act 1958 or needs a fresh common law action, whether the debtor applies to set aside, the certified copies and translations required, any urgent freezing order, and the enforcement steps against the debtor's assets. NZSK gives a fee quotation after reviewing the documents at a consultation, online or in person.
Facing a dispute in Malaysia as a foreign investor?
Time limits such as the six years to register a foreign judgment keep running while a dispute continues, so early advice protects your position. We advise once we have reviewed your documents at a consultation, online or in person, at our Puchong or Mont Kiara office, in English, Bahasa Malaysia or Mandarin.
- (+60)12-401 4799 | (+60)3-8060 0267
- [email protected]
Consultation by appointment at Mont Kiara, Kuala Lumpur and Puchong, Selangor, or online.
