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

Shariah partnerships: Mudarabah and Musharakah compared

A mudarabah is an arrangement where two or more parties collaborate for a common commercial purpose, while maintaining distinct roles. A musharakah, however, is akin to a conventional partnership under which two or more parties contribute towards the capital of a joint underlying commercial venture in the expectation of profits. 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

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

Nominee business structures – heightened scrutiny in Malaysia

While Malaysia has been taking active steps to liberalise foreign direct investment (FDI) restrictions in recent years, restrictions in a number of business sectors remain. For example, the banking, telecommunications, construction, engineering, health, education, and energy sectors, among others, are still subject to varying degrees of FDI restrictions. Read more

Bank Negara to finalise Climate Change and Principle-based Taxonomy

Bank Negara Malaysia has recently announced this month that it will soon be finalising a Climate Change and Principle-based Taxonomy which aims to provide a common language to categorise economic activities based on their impact on climate change and facilitate financial flows to activities that support the transition to a lower carbon economy. Read more