Deputy Minister of Domestic Trade and Cost of Living, Datuk Dr. Fuziah Salleh, announced in the Dewan Rakyat today that a new Trust Companies Bill will be tabled later this year. The new legislation is intended to replace the outdated Trust Companies Act 1949 (Act 100), which has been deemed insufficient for monitoring modern investment transactions and "cash trust" schemes. The move follows growing concerns over aggressive financial products that promise high returns and often target retirees and vulnerable investors.

The proposed bill will introduce a mandatory registration regime and a comprehensive framework for beneficial ownership reporting to prevent financial leakages and fraud. Fuziah noted that current laws do not adequately cover the enforcement of private trust agreements, which has led to a rise in unregulated schemes. By tightening governance and introducing corporate rescue mechanisms, the government aims to provide a safer environment for legitimate trust businesses while shutting down fraudulent operations that exploit legal loopholes.