Malaysian court rejects bankruptcy petition from Singapore casino

Debt arose from a gambling transaction is void and illegal under Malaysian law

FMT reported yesterday, the High Court in Ipoh, Perak has dismissed a Singapore casino’s petition to bankrupt a restaurant owner for his alleged failure to settle a RM26 million debt, ruling that the claim is not legally enforceable.

Justice Encik Moses Susayan said Singapore-based Resorts World at Sentosa Pte Ltd could not recover the debt owed by Encik Lee Fook Kheun because it arose from a gambling transaction, which was void and illegal under Malaysian law.

Susayan also said he was bound by a Federal Court ruling early last year that a gambling debt was not legally enforceable in Malaysia on grounds of public policy.

The petition was based on a 2018 Singapore High Court order which was registered in Malaysia under the Reciprocal Enforcement of Judgments Act 1958.

The judgment sum, including interest as of 22 December 2022, amounted to RM25,937,294.58.

Resorts World filed the creditor’s petition in 2021 at the Ipoh High Court because Lee resides in Ipoh.

Lee challenged the petition, arguing that recovering gambling debts disguised as credit facilities was unenforceable under Malaysian law.

He also contended that the alleged judgment debt was void and could not constitute a valid debt for bankruptcy proceedings.

In his judgment delivered on Monday, 27 April 2026, Susayan stressed that a gambling debt was a “debt of honour” which was not legally enforceable.

He added that foreign judgments must yield to Malaysian public policy and statutory prohibitions.

“This court is not a rubber stamp to enforce a foreign judgment which is contrary to Malaysian public policy,” he said in his oral grounds.

Susayan also referred to Section 26 of the Civil Law Act 1956 and Sections 24 and 31 of the Contracts Act 1950, which render gambling debts null, void and illegal.

However, the judge did not award costs against the Singapore casino.

Lawyers Encik Chan Kok Keong and Encik Leong Cheok Keng represented Lee, while Cik Natasha Yau acted for the casino.


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