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Due Diligence

Updated: Feb 8



Due Diligence

Due diligence in Malaysia is a process of investigating and evaluating a business, individual, or asset before making a decision to invest, enter into a contract, or otherwise engage with them. It is a critical step in any business transaction, as it helps to identify and mitigate potential risks.


There are a number of different types of due diligence that can be conducted in Malaysia, depending on the specific transaction or engagement. Some of the most common types include:


  • Financial due diligence: This involves reviewing the target company's financial statements, financial projections, and other financial information to assess its financial health and performance.

  • Legal due diligence: This involves reviewing the target company's contracts, agreements, and other legal documents to identify any potential legal risks.

  • Tax due diligence: This involves reviewing the target company's tax returns and other tax-related documents to assess its tax compliance and exposure to tax risks.

  • Commercial due diligence: This involves reviewing the target company's business plan, market analysis, and competitive landscape to assess its business prospects and risks.

  • Operational due diligence: This involves reviewing the target company's operations, processes, and systems to assess its operational efficiency and risks.


Due diligence can be conducted by the buyer, seller, or both parties to a transaction. In some cases, it may also be required by law or regulation.


Common due diligence searches in Malaysia include:


  • Companies Commission of Malaysia (CCM) search: This search provides information on the target company's corporate structure, directors, shareholders, and financial information.

  • Attestation of Company Good Standing: This document is issued by the CCM to confirm that the target company is in good standing and has met all of its regulatory obligations.

  • Credit reporting agency searches: These searches can be used to obtain information on the target company's credit history and financial performance.

  • Land Registry search: This search provides information on the ownership of land and property owned by the target company.


Regulatory requirements for due diligence in Malaysia


A number of Malaysian laws and regulations require certain types of due diligence to be conducted in certain circumstances. For example, the Securities Commission Malaysia (SC) requires due diligence to be conducted on investment proposals before they can be submitted to the SC.


The Bank Negara Malaysia (BNM) also has a number of due diligence requirements for financial institutions. For example, BNM requires financial institutions to conduct customer due diligence (CDD) on all of their customers in order to mitigate the risk of money laundering and terrorist financing.


Due diligence is an essential part of any business transaction in Malaysia. By conducting thorough due diligence, businesses can identify and mitigate potential risks, and make informed decisions about their investments and engagements.


How Bestar can Help


Bestar can help with due diligence in Malaysia in a number of ways, including:


  • Providing expert advice: Bestar's team of experienced professionals can provide expert advice on all aspects of due diligence, from planning and execution to reporting and recommendations.

  • Conducting comprehensive searches: Bestar can conduct comprehensive searches of public records, including the Companies Commission of Malaysia (CCM), credit reporting agencies, and the Land Registry.

  • Analyzing financial data: Bestar can analyze financial data to assess the target company's financial health, performance, and risks.

  • Reviewing contracts and agreements: Bestar can review contracts and agreements to identify any potential legal risks.

  • Providing tax advice: Bestar can provide tax advice on the target company's tax compliance and exposure to tax risks.

  • Reviewing business plans and market analysis: Bestar can review business plans and market analysis to assess the target company's business prospects and risks.

  • Reviewing operations, processes, and systems: Bestar can review the target company's operations, processes, and systems to assess its operational efficiency and risks.


Bestar can also help with specific types of due diligence, such as:


  • M&A due diligence: Bestar can help with due diligence on mergers and acquisitions, including financial due diligence, legal due diligence, tax due diligence, and commercial due diligence.

  • Investor due diligence: Bestar can help with due diligence on potential investments, including financial due diligence, legal due diligence, and commercial due diligence.

  • Compliance due diligence: Bestar can help with due diligence on compliance with Malaysian laws and regulations.

  • Cybersecurity due diligence: Bestar can help with due diligence on the target company's cybersecurity posture.


Bestar is committed to providing high-quality due diligence services to its clients. By partnering with Bestar, businesses can be confident that they are getting the best possible advice and support for their due diligence needs.


Contact Bestar today!



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