[INTERNATIONAL ARBITRATION] Special Alert: Balancing Desire And Danger: Regulating Third-Party Funding In A Global Context

On 13 February 2024 (Tuesday), Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said made a public statement announcing a consensus between the Malaysian Government and the European Union (EU) that regulation of third-party funding (TPF) demands heightened attention on an international scale¹. This announcement triggers timely consideration of TPF practice and regulation globally.

This e-Alert will explain the mechanism and background of TPF, set out its benefits and potential drawbacks, examine regulation of TPF in Malaysia, England and Wales, Singapore, and Hong Kong, and finally conclude that Malaysia should seek insights from other jurisdictions and tailor its own TPF regulatory measures for the benefit of Malaysians.