Document background
The Memorandum of Intention (MOI) is a crucial preliminary document in Malaysian business practice, typically used when parties are exploring significant business opportunities but are not yet ready to enter into a binding agreement. It serves as a roadmap for future negotiations while providing a structured framework for initial discussions. The document is particularly valuable in the Malaysian context where business relationships often require a formal foundation even at the preliminary stage. While generally non-binding, certain provisions such as confidentiality and exclusivity can be made binding if specifically stated. The MOI helps parties establish clear communication channels, basic terms of engagement, and timeline expectations while maintaining flexibility for detailed negotiations in the future formal agreement.
