Malaysia blocks Resorts World Sentosa bid to recoup debt through bankruptcy petition

The Ipoh High Court has ruled that casino-related debts cannot be enforced in Malaysia.

Malaysia.- The High Court in Ipoh has dismissed a bankruptcy petition filed by Resorts World Sentosa against Malaysian player Lee Fook Kheun over an alleged debt of RM26m (US$6.6m). Judge Moses Susayan ruled that the claim could not be enforced because it stems from gambling, which is considered illegal and void under Malaysian law and so cannot be used to initiate bankruptcy proceedings.

The case stemmed from a 2018 Singapore High Court judgement in favour of the operator. However, the Malaysian court ruled that the origin of the debt takes priority over any foreign ruling. Susayan described the obligation as a “debt of honour” that may exist informally between parties but has no legal standing in Malaysia.

He stressed that local courts are not required to enforce foreign judgements if they go against national law or public policy. Malaysian legislation explicitly classifies gambling-related agreements as null and unenforceable.

The ruling follows a Federal Court precedent that confirmed that gambling debts cannot be recovered through the legal system. The court dismissed the petition without awarding costs.

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The Ipoh High Court has ruled that casino-related debts cannot be enforced in Malaysia. Malaysia.- The High Court in Ipoh has dismissed a bankruptcy petition filed by Resorts World Sentosa against Malaysian player Lee Fook Kheun over an alleged debt of RM26m (US$6.6m). Judge Moses Susayan ruled that the claim could not be enforced because…