“Many of the MPs who took part in the debate expressed concerns that if it was way too easy to set up a company or free up the business ecosystem, there might be those who would take advantage of the situation for criminal activities or to cheat the people.
"I wish to clarify that the framework of the Companies Act is to regulate governance of companies while to tackle crime and cheating, this comes under other laws,” he said.
Earlier, when tabling the bill for second reading, Chong said that Act 777 came into force on Jan 31, 2017, replacing the Companies Act 1965 for the purposes of governing company registration, management, dissolution, corporatisation and other related matters.
He said that since Act 777 came into force, his ministry through the Companies Commission of Malaysia received feedback including from Bursa Malaysia on the existence of several provisions that required amendments to ensure good practices and better compliance with the law.
The Dewan sits again tomorrow.