The company took a bank loan of about RM500,000 to support the expansion, with Leong signing on as the corporate guarantor. Signing a personal guarantee for a business loan can feel like a routine requirement to secure financing for many entrepreneurs. Another businessman, Adam, 48, from Kuala Lumpur, said he also did not realise the full implications of signing a personal guarantee. But once they sign a personal guarantee, that protection is effectively bypassed.”Under Malaysian law, creditors can initiate bankruptcy proceedings against an individual if the unpaid debt exceeds the pres­cri­bed threshold and remains unresolved. “Signing a personal guarantee should never be treated as a formality.

Source: The Star April 05, 2026 23:11 UTC