Launch of Malaysia Overnight Rate (MYOR) by Bank Negara Malaysia

Bank Negara Malaysia has announced the launch of the MYOR as the new alternative reference rate (ARR) for Malaysia. Globally, ARRs are being introduced as part of a transition to transaction-based rates, in line with the LIBOR reforms after the global financial crisis. The introduction of ARRs aims to facilitate usage of benchmark rates that are more robust and based upon transactions in active, liquid markets. Read more

Competition law: increased scrutiny on dominant enterprises

The last few years have seen an increase in the level of enforcement by the Competition Commission (MyCC), and this trend is set to continue. It is important for both local and foreign enterprises to be aware of the implications of the MyCC's increased level of activity. Read more

Cross-sector merger control in Malaysia: getting closer

Like most competition law regimes around the world, Malaysia’s Competition Act 2010 contains provisions prohibiting anti-competitive practices and abuses of dominance. However, it does not currently include the third “pillar” of competition law that is common to many other regimes, namely, cross sector merger control rules. Read more

Disguised distributions – a trap for the unwary

It is a cardinal principle of company law that a company can only make distributions out of its profits. While there is a common assumption that this rule applies only to distributions made in the form of cash dividends or distributions in specie of non-cash assets, a recent English High Court decision shows that the scope of the word “distributions” must be viewed through a much broader lens. Read more

Herbert Smith Freehills advises Malaysia’s EPF on launch of world’s first and largest Shariah private equity SMA fund

Malaysia's EPF is the first institutional investor globally to establish a Shariah-compliant fund with the launch of its Shariah Private Equity Direct/Co-Investment Separate Managed Account fund which has an allocation of US$600 million. Our HSF team assisted in the launch of this world-first fund which will comprise of three SMAs with a global mandate focusing on direct and co-investment strategies into growth and buyout transactions. Read more

Bank Negara Malaysia opens applications for up to five digital bank licences

Together with the issuance of the Policy Document, Bank Negara Malaysia (BNM) announced that applications to conduct digital banking business or Islamic digital banking business are now open until 30 June 2021. In line with previous announcements, BNM proposes to issue up to five digital banking licences by the first quarter of 2022. Read more