Movable Property Security Interest

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

The Movable Property Security Interest (MPSI) Bill will introduce 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 voluntary registration system that applies to all types of movable property– whether tangible or intangible, present or future — and is applicable to all business entities.

KEY OBJECTIVES OF THE MPSI BILL

Establish a clear legal framework for security interest in Malaysia

Regulate the use of movable property as collateral

Enable broader access to financing through secured transactions
Covers a wide range of movable properties, including:

Motor vehicles
Crops
Livestock
Documents of title
Negotiable instruments
Money
Intangible assets (eg. intellectual property)

Introduction of an electronic registration and filing system:

Enables online registration and searches
Registry that will be introduced in line with the Bill will provide clarity on the competing security interests
Simplifies the registration process for secured parties using electronic formats based on readily available information

BENEFITS OF THE MPSI BILL

The MPSI framework addresses the challenges faced by creditors in assessing creditworthiness due to information gaps. The gap increases the cost of financing and limits access to financing—especially for Micro, Small and Medium Enterprises (MSMEs). By improving transparency and certainty, the MPSI Bill aims to: