Movable Property Security Interest

What is the Movable Property Security Interest Bill (MPSI)?

The MPSI Bill provides a comprehensive legal framework for the creation, registration and enforcement of security interests on movable property used as collateral for financing or loans.

This framework introduces a system of voluntary registration for all types of movable property whether tangible or intangible, present or future, which is applicable to all business entities.

Introduction of a legal framework in Malaysia

Regulates security interests for movable property
Facilitates the use of movable property as collateral for loans or obligations

Covers a wide range of movable properties

Includes motor vehicles, crops, livestock, documents of title, negotiable instruments, money, and intangible assets

Implementation of an electronic registration filing system

Enables online search and registration of security interests for all types of entities

Clear guidelines on the priority of competing security interests

Simplifies the registration process for secured parties using electronic formats

BENEFITS OF THE MPSI BILL

This framework is established to address the challenges faced by creditors in assessing creditworthiness due to information gaps. The gaps restrict access to external financing, as the cost of gathering information for credit assessment is high. Consequently, external financing becomes too expensive for creditors to effectively evaluate the creditworthiness of applicants.

This framework will provide certainty and assurance, thereby enhancing access to finance for MSMEs and minimising the financing gap between small and large companies through the following: