How to Start a Claim in the Small Claims Court in Malaysia

If someone owes you RM5,000 or less, you can sue them yourself through the small claims procedure at the Magistrates' Court. You do not need a lawyer to file. You fill in Form 198, file it at the court registry, serve a copy on the person who owes you money, and present your case to the Magistrate at the hearing. Lawyers cannot represent either side at that hearing, and the Magistrate's decision is final.

This guide takes you through each step, from preparing the claim to what you can do if the debtor still refuses to pay after judgment.

What is the Small Claims Court in Malaysia?

The "Small Claims Court" is not a separate building. It is a simplified procedure heard in the Magistrates' Court under Order 93 of the Rules of Court 2012. It is designed so that ordinary people can recover small sums without the cost and formality of a full civil suit.

Order 93, rule 2 sets the limit. The Order applies to claims where the amount in dispute, or the value of the subject matter of the claim, does not exceed RM5,000. The judiciary's current guidance for self-represented litigants confirms that the limit remains RM5,000.

A few features make the procedure different from an ordinary claim:

• Only individuals can start a small claim. A company or business entity cannot file as the claimant. You can, however, sue a company or other legal entity as the defendant.

• No lawyers at the hearing. Both parties must present their own case. You may consult a lawyer beforehand, but you cannot be represented at the hearing.

• The decision is final. Neither party can appeal a small claims judgment.

• Costs are capped. The court may award costs of not more than RM100 to a party.

What kinds of claims can you bring?

Common examples include:

• Money you lent that has not been repaid

• Claims over goods worth not more than RM5,000

• Unpaid fees for services you provided

• Unpaid rent where the amount does not exceed RM5,000

• Claims for goods that were damaged

• Claims where a promised service or performance was not delivered

If your claim is more than RM5,000, the small claims procedure does not apply and a different court process is needed. See our guide on debt recovery for claims exceeding RM10,000.

Before you file: a quick checklist

The small claims procedure is simple, but the Magistrate will still expect you to prove your claim. Before going to the registry, prepare:

• The defendant's full name and last known address (and identity card number, if you know it)

• The exact amount you are claiming

• Evidence of the debt, such as bank transfer slips, WhatsApp or email messages, invoices, receipts or a written agreement

• A short timeline: when the money was lent or the service was provided, when payment was due, and what you did to ask for it

• Any witnesses who can support your version of events

It is often sensible to ask for payment in writing first. A clear written request gives the other person a final chance to pay and becomes part of your evidence if they do not.

Step 1: Fill in Form 198 (the small claims writ)

Form 198 is the writ and statement of claim for a small claim. You can obtain it from the registry of your local Magistrates' Court. When filling it in:

1. Enter your full name, identity card number and current address. As the person bringing the claim, you are the Plaintiff.

2. Enter the full name and last known address of the person you are claiming against. That person is the Defendant.

3. State the exact amount you are claiming. It must not exceed RM5,000.

4. Set out the facts briefly and clearly: the relevant dates, how the debt arose and why you are claiming it.

5. Sign the form, or put your thumbprint on it, yourself. Order 93 requires the Plaintiff to sign personally.

Keep the facts short and easy to follow. The Magistrate will read the form before the hearing, so a clear account helps.

Step 2: File four copies and pay the filing fee

File the completed Form 198 in four copies at the Magistrates' Court registry and pay the filing fee. The judiciary's current guide for self-represented litigants lists a filing fee of RM20 for the writ, while older printed versions of the form mention RM10. Confirm the current fee with the registry when you file.

The registry will seal the form and fix a hearing date. You will receive sealed copies back: one for your own records and one to serve on the Defendant.

The judiciary also runs an online portal for self-represented litigants. Ask the registry whether your filing can be made online.

Step 3: Serve the writ on the Defendant

You are responsible for delivering (serving) the sealed Form 198 on the Defendant. Under Order 93, service can be made personally (by hand) or by prepaid registered post addressed to the Defendant's last known address.

Serve the form properly and keep proof. You will need to show the court that the Defendant received the writ, which is done by filing an Affidavit of Service. The judiciary's guide lists a fee of RM8 for this.

If you struggle with the forms, you can get advice from a lawyer while you prepare. Just remember that Order 93, rule 7 provides that a party shall not be represented by an advocate, except where the Defendant is required by law to be represented by an authorised person. At the hearing, you speak for yourself.

Step 4: The Defendant's response (Form 199)

Everyone has the right to be heard. Once served, the Defendant has 14 days from the date of service to file a defence using Form 199. In that form, the Defendant can:

• Admit the claim and explain why

• Dispute the claim and explain why

• Make a counterclaim against you, meaning a claim that you owe them something

If the Defendant files a counterclaim, you respond with your defence to the counterclaim using Form 200.

Step 5: The hearing

The hearing is usually held before the Magistrate in chambers, in a less formal setting than open court. You must prove your claim, so bring your witnesses and all your documents. The Magistrate may ask both sides questions to understand what happened.

If both parties agree on a settlement, the court can record it as a consent judgment using Form 206. Otherwise, the Magistrate decides after hearing both sides. If the court is satisfied that the Defendant owes the money, it will order the Defendant to pay you.

What happens if someone does not file a defence or does not turn up?

A party who has judgment entered against them because they did not attend or did not file a defence may apply to the court to set that judgment aside, using Form 205. If the application succeeds, the court will hear the matter again.

You have a judgment, but the debtor still will not pay

A court order does not always mean the money arrives straight away. If the Defendant (now the judgment debtor) ignores the order:

1. Make sure the order has been served on the judgment debtor.

2. Apply for a Notice to Judgment Debtor to Show Cause using Form 208. The judiciary's guide lists a fee of RM20.

3. Once the court endorses it, serve the notice on the judgment debtor in the same way you served the writ.

The notice requires the judgment debtor to pay the amount ordered into court within the period stated, or to attend court on the date fixed. If the judgment debtor fails to attend, the court may issue a warrant of arrest.

When the judgment debtor attends, the Magistrate may:

• Give the judgment debtor time to pay, including payment by instalments

• Order a writ of seizure and sale (Form 84), under which the court bailiff can seize the debtor's movable property to be sold at auction to satisfy the judgment

• Order the judgment debtor to be imprisoned

Common mistakes to avoid

• Claiming more than RM5,000. The procedure only covers claims within the limit.

• Incomplete defendant details. A wrong name or out-of-date address can make service fail.

• No proof of service. Without an Affidavit of Service, the court may not proceed.

• Arriving without evidence. Your word alone may not be enough. Bring transfer slips, messages and witnesses.

• Missing the hearing date. If you do not attend, your claim may be dismissed.

How ASCOLAW can help

You cannot be represented by a lawyer at a small claims hearing, but you can get advice before you file. ASCOLAW (Messrs Akmal Saufi & Co) can help you check whether your claim fits the small claims procedure, review the facts you intend to put in Form 198, and look at whether your evidence supports the amount you are claiming. If your claim is above RM5,000, or the debtor is a company that disputes liability, we can explain the other debt recovery routes available.

Fill in the ASCOLAW enquiry form below with a short description of your claim, and our team will get back to you.

Frequently asked questions

What is the maximum amount I can claim in the Small Claims Court in Malaysia?

RM5,000. Order 93 of the Rules of Court 2012 applies only where the amount in dispute, or the value of the subject matter of the claim, does not exceed RM5,000.

Can a company file a small claim?

No. Only individuals can start a small claim. A company or other legal entity can, however, be named as the Defendant.

Can I bring a lawyer to the small claims hearing?

No. Both parties must present their own case. You may consult a lawyer before the hearing, and the only exception is where the Defendant is required by law to be represented by an authorised person.

Can I appeal a small claims decision?

No. The Magistrate's judgment in a small claim is final and neither party can appeal. A party who was absent or did not file a defence may, however, apply to set aside a judgment entered against them.

How much does it cost to file a small claim?

The court fees are modest. The judiciary's current guide lists RM20 for filing the writ and RM8 for the Affidavit of Service. Confirm current fees with the registry. The court may award costs of not more than RM100 to a party.

This article provides general information on the small claims procedure under Order 93 of the Rules of Court 2012 and is not legal advice for your specific situation. Court fees, forms and practice may change. Check the current position with the Magistrates' Court registry or seek advice before taking action.

Related guides

• How To Collect Payment From Clients Who Refuse To Pay Without a Lawyer?

• Debt Recovery Process in Malaysia (Proses Tuntut Hutang)

• Navigating Debt Recovery in Malaysia: A Legal Guide for Claims Exceeding RM10,000

• Debt Recovery