2 April 2015

The Netting of Financial Agreements Act 2015

Effective 30 March 2015, the Netting of Financial Agreements Act 2015 (‘the Act’) came into force which aims to provide legal certainty to the enforceability of a close-out netting mechanism under Malaysian law. Prior to this, there was some uncertainty on the enforceability of netting arrangements in Malaysia.

According to Deputy Finance Minister Datuk Ahmad Maslan, the Act gives assurance to international and domestic financial market participants such as fund management, insurance, and banking institutions, and also public and private companies to enforce the close-out netting mechanisms when an ‘event of default’ occurs under certain agreements.

With the Act coming into force, credit risk reduction benefits will be provided by allowing counter parties to net off credit risk exposures instead of having gross exposures thereby improving the operational efficiency of the financial system by reducing systemic risks.

Please click here for our client alert which highlights the key features of the Act.


On 1 December 2022, KPMG and ZICO Law entered into an agreement under which a number of law firms and teams from the ZICO Law network have joined the KPMG network of firms.

The deal will see more than 275 lawyers join over 2,900 legal professionals in the KPMG global organization, creating a significant legal footprint across Asia. It will offer legal services and solutions, a globally connected legal services platform, and specialists who work with leading technology providers to modernize legal functions across organizations. The strategic combination increases the total number of legal professionals in the KPMG network to over 3,750 across 84 jurisdictions. You may read the press release here.

For more information and to see how we can assist you in your desired jurisdiction, please follow the links below: