Letter of Demand Malaysia: What to Include

Quick answer: what a Malaysian letter of demand must contain

• Sender’s full details (or solicitor’s letterhead)

• Recipient’s full details — registered name, NRIC/SSM number, address

• Date

• Reference / heading — e.g., “Letter of Demand: Outstanding Sum of RM XX,XXX”

• Background facts — the contract, the breach, dates, amounts

• Demand — the specific action sought (payment, performance, withdrawal of statement)

• Deadline — typically 7-21 days

• Consequences of non-compliance — civil suit, statutory demand, costs

• “Without prejudice save as to costs” notation if appropriate

• Signature

template — Malaysian letter of demand for unpaid invoice

[Your Firm Letterhead OR Your Full Name & Address] [Date]

BY HAND / BY EMAIL / BY REGISTERED POST

To: [Recipient Full Name] [NRIC No / Company No] [Recipient Address]

RE: LETTER OF DEMAND — OUTSTANDING SUM OF RM [AMOUNT]

Dear Sirs,

1. We refer to the [contract / invoice / agreement] dated [date] between [parties] (the “Agreement”).

2. Pursuant to the Agreement, you were obliged to pay the sum of RM [amount] on or before [due date].

3. Despite our previous reminders dated [list dates], you have failed, refused and/or neglected to make payment.

4. As at the date of this letter, the outstanding sum is RM [amount], exclusive of interest and costs.

5. TAKE NOTICE that we hereby demand payment of the said sum of RM [amount] within fourteen (14) days from the date of this letter, failing which we shall, without further notice to you, commence civil proceedings against you for the recovery of the said sum together with interest at the rate of [5]% per annum from the due date until full and final settlement, and costs on a solicitor-and-client basis.

6. We further reserve our rights to issue a statutory demand under section 466 of the Companies Act 2016 [if recipient is a company] which, if unsatisfied within twenty-one (21) days, shall create a presumption of insolvency permitting us to commence winding-up proceedings.

7. Kindly govern yourself accordingly.

Yours faithfully,

[Signature] [Name] [Capacity]

What every clause does

• Clause 1-2: Establishes the contractual basis. You cannot demand a sum without grounding it in a legal obligation.

• Clause 3: Records prior reminders — strengthens your position that this is not a surprise demand.

• Clause 4: Quantifies the demand precisely. “Approximately RM 10,000” weakens your case; “RM 10,847.32” strengthens it.

• Clause 5: The operative demand. The “TAKE NOTICE” language is conventional and signals seriousness. The 14-day deadline is reasonable for clear debts.

• Clause 6: The statutory-demand reference is a powerful escalation for company debtors. Section 466 of the Companies Act 2016 creates a presumption of insolvency if the demand is unsatisfied within 21 days, opening the door to winding-up under section 465.

• Clause 7: Polite-but-firm closing. “Kindly govern yourself accordingly” is the standard Malaysian/Singaporean legal sign-off.

When to instruct a lawyer (vs sending it yourself)

Send it yourself when:

• The amount is small (under RM 5,000)

• The facts are clear and undisputed

• The relationship is preserved (you may want to do business again)

• You are simply prompting payment, not preparing for litigation

Instruct a lawyer when:

• The amount is RM 10,000 or more

• The recipient has a lawyer, or is sophisticated

• You may need to escalate to litigation

• The matter involves contract dispute, defamation, or professional negligence

• You want maximum impact on a recipient who has been ignoring you

Five common mistakes that weaken your letter

• Threatening criminal action. “I will report you to the police for theft” can amount to extortion under section 384 of the Penal Code. Stick to civil consequences.

• Defamatory statements. Calling someone “a fraud” or “a thief” in writing creates defamation exposure. Stick to the facts.

• Unreasonable deadlines. A 24-hour deadline is unreasonable for most debts and will be held against you.

• No deadline. A demand without a deadline is just a complaint. The deadline creates the consequences.

• Wrong recipient. Demanding from the wrong company (e.g., a Sdn Bhd parent when the debt is with its subsidiary) gives the real debtor cover. Verify SSM company structure before sending.

Need a properly drafted letter of demand?

We draft and issue letters of demand for clients across Johor, KL, and Selangor.

• Phone +60 17-702 2800

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