The Singapore- Indonesia Insolvency MOU: A Model for Future China- Singapore Insolvency Cooperation?
By Prof. & Dr. Jingxia Shi
I. Introduction
On 30 March 2026, the Supreme Court of Singapore and the Supreme Court of Indonesia signed a Memorandum of Understanding( MOU) on judicial cooperation in cross-border insolvency proceedings. While the MOU is not legally binding and does not create substantive rights or obligations, it nevertheless represents an important development in the evolution of cross-border insolvency cooperation in Asia. More significantly, it provides a useful lens through which to examine the future trajectory of regional insolvency cooperation in a region characterized by diverse legal traditions,
16 differing levels of economic development, and uneven adoption of international insolvency
norms.
For more than two decades, international discussions on cross-border insolvency have largely revolved around legislative harmonization, particularly through the 1997 UNCI- TRAL Model Law on Cross-Border Insolvency and EU Regulation on Insolvency Proceedings. The Model Law has become the leading international framework for recognition of foreign proceedings, assistance to foreign representatives, and cooperation among courts. Yet its adoption remains far from universal in Asia. While Singapore, Japan, South Korea, and Malaysia have adopted the Model Law, several major Asian economies- including China, Indonesia, Vietnam, and Thailand- have not. Against
this backdrop, the Singapore- Indonesia MOU suggests an alternative pathway. Rather than waiting for legislative convergence, courts may develop practical mechanisms for communication, coordination, and mutual assistance despite differences in domestic insolvency laws. This development raises an important question for the region: can the Singapore- Indonesia MOU serve as a model for future China- Singapore judicial cooperation in cross-border insolvency matters?
This commentary holds that the MOU reflects a broader shift in Asia from legislative harmonization toward pragmatic judicial cooperation. It further suggests that China and Singapore may be particularly well positioned to develop a similar framework, drawing on existing judicial practice, increasing economic integration, and valuable lessons from the Mainland China- Hong Kong cross-border insolvency cooperation mechanism.
II. Beyond the Model Law: A New Trend in Asia
The UNCITRAL Model Law remains one of the most successful instruments in the field of international insolvency. It has facilitated judicial cooperation across dozens of jurisdictions and contributed significantly to legal certainty in multinational restructurings and insolvencies. Singapore ' s adoption of the Model Law in 2017 was a major milestone in its development as a leading restructuring and insolvency hub. Nevertheless, the Asian experience demonstrates the limits of relying exclusively on legislative harmonization. Unlike Europe, which benefits from the European Insolvency Regulation( EIR) and a relatively integrated legal framework,
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