Power of Attorney in Malaysia
What is a Power of Attorney (POA)?
A Power of Attorney (POA) is a legal document that authorizes an individual (known as the “attorney” or “agent”) to act on behalf of another person (the “principal”) in legal, financial, or personal matters. In Malaysia, the Power of Attorney can be used for a variety of purposes, including managing property, making financial decisions, or handling business transactions.
Types of Power of Attorney in Malaysia
In Malaysia, there are different types of Power of Attorney, each with its specific purpose and scope of authority:
1. General Power of Attorney:
A general POA allows the attorney to act on behalf of the principal in a wide range of matters, such as managing assets, conducting financial transactions, or signing documents.
2. Special Power of Attorney:
A special POA grants the attorney specific powers for a particular task or event, such as selling property, signing a contract, or representing the principal in a legal matter.
Why Do You Need a Power of Attorney in Malaysia?
A Power of Attorney is a powerful legal tool that can help in various situations:
- Managing Assets: If you are unavailable due to travel, illness, or incapacity, your appointed attorney can manage your financial and property matters.
- Ensuring Your Wishes Are Followed: In case of unforeseen circumstances, you can appoint a trusted individual to make decisions in line with your best interests.
- Avoiding Legal Complications: Without a POA, legal complications may arise if someone needs to make decisions on your behalf but does not have legal authority.
- Convenience: A POA can save time and effort when handling legal matters on your behalf.
Legal Requirements for a Power of Attorney in Malaysia
For a Power of Attorney in Malaysia to be properly prepared and used, several legal and procedural requirements should be considered:
- The donor must have legal capacity
The person granting the Power of Attorney (the donor) should be at least 18 years old and have the mental capacity to understand the nature and effect of the authority being given to the attorney. - The Power of Attorney must be properly drafted
The POA should clearly identify the donor and the appointed attorney and, importantly, specify the powers and authority being granted. The scope of the document should reflect its intended purpose, particularly where the attorney is being appointed for a specific transaction or property matter. - The donor’s signature must be properly authenticated
Where the Power of Attorney is executed in Peninsular Malaysia, the donor’s signature should be authenticated in accordance with the Powers of Attorney Act 1949 [Act 424]. Depending on the circumstances, authentication may be carried out before an Advocate and Solicitor, Commissioner for Oaths, Notary Public or another person authorised under the Act. - Stamping requirements must be complied with
Where applicable, the Power of Attorney should be submitted for stamping with the Inland Revenue Board of Malaysia (LHDN) before it is presented for registration. - Registration of the Power of Attorney
Where registration is required for the intended use of the POA, the document should be deposited and registered with the Power of Attorney Registry of the High Court of Malaya in accordance with the Powers of Attorney Act 1949 and the applicable court procedures. - Additional requirements may apply to property transactions
Where a Power of Attorney is intended to authorise dealings involving land or property in Malaysia, the document should be drafted specifically for the intended transaction. The requirements of the relevant Land Office or Land Registry and applicable Malaysian land law should also be considered.
For clients in Kuala Lumpur and Selangor, our firm can assist with the preparation and execution of the Power of Attorney and the applicable stamping and High Court registration process.
How to Create a Power of Attorney in Malaysia
Creating a Power of Attorney in Malaysia requires careful consideration and adherence to legal formalities. The process involves the following steps:
- Choose Your Attorney: The person you appoint as your attorney should be someone trustworthy and capable of handling your affairs.
- Draft the Power of Attorney Document: The document should clearly state the scope of authority granted to the attorney. It is advisable to have a lawyer draft or review the POA to ensure it complies with Malaysian law.
- Sign the Power of Attorney: In Malaysia, the POA document must be signed by the principal in the presence of at least one witness. The witness should be an independent person who is not a beneficiary or related to the principal.
- Register the Power of Attorney: Although registration is not mandatory for a POA in Malaysia, it may be required for certain transactions, such as property dealings. It is advisable to have the POA notarized or registered with the relevant authorities, such as the Land Office for real estate transactions.
Power of Attorney Act 1949 in Malaysia
A Power of Attorney in Malaysia is principally governed by the Powers of Attorney Act 1949 [Act 424] in Peninsular Malaysia. The Act provides the legal framework relating to the authentication, deposit and registration of a Power of Attorney and the circumstances in which a Power of Attorney may continue or come to an end.
A Power of Attorney, commonly abbreviated as POA, is a legal instrument through which one person, known as the donor, authorises another person, known as the donee or attorney, to act on the donor’s behalf.
The authority granted can be broad or restricted to a particular transaction. For this reason, the wording of the Power of Attorney is important. The document should clearly identify the parties, describe the powers being granted and specify any limitations imposed on the attorney.
The Powers of Attorney Act 1949 should therefore be considered when preparing a POA, particularly where the document is intended to be registered and relied upon for transactions in Peninsular Malaysia.
General Power of Attorney vs Special Power of Attorney
The scope of authority granted under a Power of Attorney depends primarily on how the document is drafted.
A General Power of Attorney generally gives the attorney broader authority to manage several matters on behalf of the donor. Depending on its wording, this could include dealing with documents, managing certain financial or business affairs, corresponding with authorities or undertaking transactions on behalf of the donor.
A Special Power of Attorney, sometimes called a Specific Power of Attorney, limits the attorney’s authority to a particular transaction, property or purpose.
For example, a person who is overseas may appoint an attorney specifically to deal with a particular property transaction in Malaysia. The document can be drafted so that the attorney’s authority is confined to that transaction rather than giving the attorney unrestricted powers over the donor’s affairs.
| General Power of Attorney | Special / Specific Power of Attorney |
|---|---|
| Provides broader authority | Limited to specified powers |
| May cover several matters | Usually relates to a particular matter or transaction |
| Suitable where continuing authority over several matters is required | Suitable where the donor only requires representation for a specific purpose |
| Powers must still be clearly defined | Scope can be tightly restricted |
There is therefore no single form of POA suitable for every situation. The appropriate structure depends on what the donor actually intends the attorney to do.
Is There a Lasting Power of Attorney in Malaysia?
Searches for “lasting power of attorney Malaysia“ and “LPA Malaysia” have become increasingly common. However, it is important not to automatically equate terminology used in other jurisdictions with the Malaysian legal framework.
In Malaysia, a Power of Attorney in Peninsular Malaysia is governed principally by the Powers of Attorney Act 1949. The Act recognises ordinary revocable powers as well as certain irrevocable Powers of Attorney, subject to the statutory requirements.
An irrevocable Power of Attorney is different from simply describing an ordinary POA as permanent.
Under the Powers of Attorney Act 1949, particular legal consequences may arise where a Power of Attorney is expressed to be irrevocable and is given for valuable consideration, or where it is expressed to be irrevocable for a fixed period. Whether these provisions apply depends on the terms and circumstances of the particular document.
Accordingly, a person searching for a lasting power of attorney in Malaysia should obtain advice on the Malaysian legal instrument appropriate for the intended purpose rather than relying on an LPA form designed for another jurisdiction.
Enduring Power of Attorney Malaysia
The term “enduring power of attorney” is also frequently used internationally to describe an authority intended to continue despite certain subsequent events.
For Malaysian purposes, however, the document must be considered according to the Powers of Attorney Act 1949 and its actual terms.
The Act contains provisions dealing with irrevocable Powers of Attorney. Depending on the circumstances and statutory requirements, an irrevocable POA may not be terminated in the same way as an ordinary revocable Power of Attorney.
Therefore, anyone considering an enduring power of attorney in Malaysia or seeking a POA that is intended to remain effective in particular circumstances should obtain legal advice on whether such an arrangement can properly be structured under Malaysian law.
The title given to the document is less important than whether its provisions and execution satisfy Malaysian law.
Registration of Power of Attorney in Malaysia
One of the important steps when dealing with a Power of Attorney in Malaysia is determining whether the document must be deposited and registered for its intended use.
For a Power of Attorney governed by the Powers of Attorney Act 1949, the document must comply with the applicable requirements before it can be properly registered with the High Court of Malaya.
The Malaysian Judiciary provides for registration of Power of Attorney documents through the relevant Power of Attorney Registry. Registration matters can be handled at the High Court of Malaya in Kuala Lumpur or other High Court registries throughout Peninsular Malaysia.
Generally, the process involves:
- preparing the Power of Attorney according to the authority required;
- ensuring that the donor’s execution is properly authenticated;
- arranging for the appropriate stamping of the document;
- preparing the required original and duplicate documentation;
- submitting the Power of Attorney for registration; and
- obtaining the registered document for subsequent use.
The exact requirements may depend on where the Power of Attorney is executed and the purpose for which it will be used.
The Malaysian Judiciary also operates an electronic filing system for Power of Attorney registration. Lawyers may handle the registration process on behalf of their clients, while members of the public may approach the relevant Power of Attorney Registry for assistance with the applicable procedure.
Who Can Witness a Power of Attorney in Malaysia?
Proper authentication of the donor’s signature is an important requirement.
For a Power of Attorney executed in Peninsular Malaysia, the Powers of Attorney Act 1949 provides for authentication before specified persons.
Depending on the circumstances, these may include:
- a Magistrate;
- Justice of the Peace;
- Land Administrator;
- Notary Public;
- Commissioner for Oaths;
- an Advocate and Solicitor; or
- certain authorised bank officers.
Different requirements may apply where the Power of Attorney is signed outside Malaysia.
This is particularly relevant for Malaysians living overseas, foreign property owners or individuals who cannot return to Malaysia simply to execute documents.
If the POA is intended to be signed overseas and subsequently used in Malaysia, it is advisable to determine the applicable execution and authentication requirements before signing the document. This reduces the risk of the document being rejected when it is subsequently presented for registration or use in Malaysia.
Power of Attorney for Property in Malaysia
A Power of Attorney for property is commonly considered where the property owner cannot personally attend to a transaction in Malaysia.
For example, a person may be living or working overseas but needs someone in Malaysia to handle matters relating to a particular property.
Depending on the transaction and the terms of the POA, an attorney may be authorised to carry out specified acts such as:
- signing documents relating to a particular property;
- communicating with solicitors, developers, financial institutions or relevant authorities;
- submitting or collecting documents;
- attending to administrative matters relating to the transaction; or
- executing specifically authorised documents on behalf of the donor.
A property-related POA should not simply state that the attorney can “deal with the property”. The document should clearly identify the property and define the powers that the donor actually intends to grant.
This is especially important because a Power of Attorney gives another person legal authority to act in the donor’s name.
Where the POA concerns dealings involving land, additional requirements under Malaysian land law and the requirements of the relevant Land Office or Land Registry may also have to be considered.
Power of Attorney for Someone Living Overseas
A common reason for preparing a Power of Attorney in Malaysia is that the donor is living outside Malaysia.
For example, a Malaysian property owner working in Singapore, Australia, the United Kingdom or another country may need someone in Malaysia to handle a particular transaction.
It may not be practical for the owner to repeatedly return to Malaysia merely to sign or submit documents.
A properly drafted POA can potentially authorise an appointed person to perform specifically defined acts in Malaysia.
However, execution outside Peninsular Malaysia is subject to different authentication requirements under the Powers of Attorney Act 1949. The document should therefore be prepared with those requirements in mind before it is signed overseas.
How Much Does a Power of Attorney Cost in Malaysia?
The Power of Attorney Malaysia cost depends on the nature and complexity of the authority being granted.
There is no single legal fee that applies to every Power of Attorney because one POA may contain a straightforward authority for a specific purpose while another may involve extensive powers, property transactions, corporate matters or overseas execution.
The overall Power of Attorney fees in Malaysia may include:
- solicitor’s professional fees for drafting or reviewing the POA;
- applicable stamp duty;
- High Court registration fees;
- filing and administrative charges;
- disbursements; and
- additional costs where documents are executed overseas or require further authentication.
The Malaysian Judiciary separately prescribes court charges associated with registration and related Power of Attorney processes.
At The Law Chambers of Gurvin, our professional fees for a Power of Attorney currently start from RM800, depending on the nature and scope of the document required.
Before preparing the POA, we will normally need to understand what authority is being given, who will receive that authority and what transaction or matter the attorney is expected to handle.
This allows the Power of Attorney to be drafted according to its intended purpose rather than using a generic document containing unnecessary or excessively broad powers.
Important Considerations When Creating a Power of Attorney in Malaysia
- Scope of Authority: Clearly define what actions the attorney can take on your behalf. The broader the authority, the more responsibility the attorney will have.
- Revocation: You can revoke a Power of Attorney at any time, provided you are mentally competent. The revocation must be in writing and communicated to all parties who have a copy of the original POA.
- Legal Effectiveness: If the Power of Attorney involves property or financial transactions, it must comply with Malaysian laws, such as the Contracts Act 1950 or the Registration of Title Act 1982.
Power of Attorney Sample Malaysia – What Should a POA Contain?
People frequently search online for a Power of Attorney sample in Malaysia or a standard POA template.
While a sample may help explain the general structure of the document, a Power of Attorney should ideally be drafted according to the actual authority that the donor wishes to grant.
A Malaysian Power of Attorney will commonly address matters such as:
Details of the donor
The person giving the authority must be properly identified.
Details of the attorney or donee
The individual or person receiving the authority should also be clearly identified.
Powers granted
The document should state precisely what the attorney is authorised to do.
Limitations on authority
Where necessary, the document can expressly prevent the attorney from carrying out acts outside the intended transaction.
Property or transaction details
If the POA concerns a particular property or transaction, sufficient details should be included to identify it.
Duration and termination
The document should address when the authority takes effect and, where appropriate, when it terminates.
Execution and authentication
The Power of Attorney must be executed and authenticated in accordance with the applicable Malaysian requirements.
Using an overly broad Power of Attorney template for a very specific transaction can expose the donor to unnecessary risks. Conversely, a POA drafted too narrowly may not give the attorney sufficient authority to complete the intended transaction.
How to Revoke a Power of Attorney in Malaysia
Whether a Power of Attorney can be revoked depends on the nature of the authority and the terms under which it was granted.
An ordinary revocable Power of Attorney can generally be brought to an end by the donor, subject to the applicable legal and registration requirements.
Where the POA has already been registered, simply telling the attorney that the authority has been withdrawn may not be sufficient for all purposes. Appropriate notice and registration of the revocation may be required.
The Malaysian Judiciary’s Power of Attorney Registry deals with the registration of revocation documents as well as the registration of POAs.
The position can be different for an irrevocable Power of Attorney, particularly where the statutory requirements under the Powers of Attorney Act 1949 apply.
Legal advice should therefore be obtained before attempting to revoke an irrevocable POA or where third parties have already acted in reliance upon the authority.
Lawyer for Power of Attorney in Kuala Lumpur, Selangor & Negeri Sembilan
The Law Chambers of Gurvin assists individuals and businesses with the drafting, review and registration of Power of Attorney documents in Malaysia.
We can advise on the appropriate scope of authority, prepare a General or Special Power of Attorney, advise clients who are executing documents overseas and assist with the registration process where required.
Where the Power of Attorney concerns a property or particular transaction, we can also review the underlying purpose of the appointment so that the powers granted to the attorney correspond with the acts that the attorney is actually required to perform.
If you require assistance with a Power of Attorney in Kuala Lumpur or Malaysia, you may contact our Lawyer at Law Chambers of Gurvin to discuss the intended purpose of the POA before the document is prepared.
This article provides general information on Powers of Attorney in Malaysia and does not constitute legal advice. The requirements applicable to a particular Power of Attorney depend on the document, its purpose and the circumstances in which it is executed and used.
Author: Gurvinder Kaur, LL.B (Hons), Multimedia University
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Frequently Asked Questions About Power of Attorney in Malaysia
What is a Power of Attorney in Malaysia?
A Power of Attorney is a legal instrument under which a person known as the donor authorises another person, known as the donee or attorney, to perform specified acts on the donor’s behalf. In Peninsular Malaysia, Powers of Attorney are principally governed by the Powers of Attorney Act 1949.
What is Power of Attorney called in Malay?
Power of Attorney in Malay is commonly referred to as “Surat Kuasa Wakil”. The Malaysian Courts use the term Surat Kuasa Wakil in their official information concerning registration of Powers of Attorney.
What is the difference between a General and Special Power of Attorney?
A General Power of Attorney usually grants broader authority covering several matters, whereas a Special or Specific Power of Attorney restricts the attorney’s authority to specified acts, transactions or property.
Does a Power of Attorney need to be registered in Malaysia?
The registration requirements depend on the nature and intended use of the POA. A Power of Attorney intended to operate under the Powers of Attorney Act 1949 should comply with the applicable authentication, stamping, deposit and registration requirements. Registration is handled through the Power of Attorney Registry of the High Court of Malaya.
Can I make a Power of Attorney if I am outside Malaysia?
Yes, a POA intended for use in Malaysia can be executed outside Peninsular Malaysia, but specific authentication requirements apply. It is advisable to have the document prepared and the signing requirements confirmed before executing it overseas.
Can a Power of Attorney be used to sell property in Malaysia?
A Power of Attorney may authorise an attorney to perform specified acts concerning property, provided that the powers are properly drafted and the document complies with the applicable legal requirements. The requirements of Malaysian land law and the relevant Land Office or Land Registry must also be considered.
How much does a Power of Attorney cost in Malaysia?
The cost depends on the complexity and purpose of the document. Costs may include legal fees, stamp duty, registration charges and disbursements. At The Law Chambers of Gurvin, professional fees for preparing a Power of Attorney currently start from RM800, depending on the scope of work.
Can I revoke a Power of Attorney?
An ordinary revocable POA may generally be revoked subject to the applicable requirements. However, different rules can apply to an irrevocable Power of Attorney. Where the POA has been registered, the appropriate revocation process should also be completed.
Is a Lasting Power of Attorney available in Malaysia?
The expression “Lasting Power of Attorney” is commonly associated with legal regimes in other jurisdictions. In Peninsular Malaysia, Powers of Attorney are governed principally by the Powers of Attorney Act 1949, which also contains provisions concerning certain irrevocable Powers of Attorney. A Malaysian lawyer should be consulted on the appropriate instrument for the particular purpose rather than relying on a foreign LPA template.
Do I need a lawyer to prepare a Power of Attorney?
A person may not necessarily require a lawyer in every situation, but legal advice can be particularly important where the POA involves property, substantial financial authority, overseas execution or an irrevocable arrangement. A lawyer can also ensure that the powers granted are appropriately limited and that the document complies with the applicable execution and registration requirements.
Does a Power of Attorney Continue After Death?
A Power of Attorney generally does not continue after the death of the donor. A POA should therefore not be treated as a substitute for proper estate planning. A person who wishes to determine how their assets are distributed after death should consider preparing a Will in Malaysia. Where a person dies without a valid Will, the family may instead need to apply for Letters of Administration or, where applicable, proceed through the small estate administration process.