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UPDATES
9 December 2025

Debt Recovery in Malaysia

Every unpaid invoice is money left on the table.
Don’t let debt hold you back. Take action now and secure your business’s financial health.


Debt Recovery = Reclaiming Money Owed

Objective:
To recover debts efficiently and lawfully, with minimal cost and disruption.


STEP 01: Negotiation / Settlement

  • Start friendly.

  • Talk it out and request payment before it gets messy.

  • Ensure everything is documented in writing.


STEP 02: Issue Notice of Demand

  • A formal notification to encourage the debtor to pay.

  • A practical way to prompt payment without going to court.

  • Shows you are serious and willing to escalate.


STEP 03: Commence Legal Action

Take court action to enforce repayment based on claim amount:

Claim Amount Court
Below RM5,000 Small Claims Court
Below RM100,000 Magistrates’ Court
Below RM1,000,000 Sessions Court
More than RM1,000,000 High Court

STEP 04: Enforcing a Court Judgment

The court can help recover unpaid debt through several enforcement methods. Here are some of the common methods:

  1. Writ of Seizure and Sale
    Court-ordered seizure and auction of debtor’s assets.

  2. Garnishee Proceedings
    Recover money directly from the debtor’s bank accounts.

  3. Bankruptcy Proceedings
    Declare an individual bankrupt and take over assets to settle debts.

  4. Winding-Up Proceedings (Companies)
    Apply to wind up a company and sell its assets to pay off debts.


Not Sure What to Do? Let Us Strategize for You.

Contact Our Offices:

Johor Office
+603-644 2223 / +6019-738 8420
[email protected]

Selangor Office
+6019-508 8420
[email protected]

Kuala Lumpur Office
+6019-684 8420
[email protected]

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