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(1) Where a party giving notice of opposition under regulation 37 or a counter-statement under regulation 39 neither resides nor carries on business in Malaysia, the Registrar may require him to give security, in such form as the Registrar may deem sufficient, for the costs or expenses of the proceedings before him, for such amount as the Registrar may deem fit, and at any stage in the opposition proceedings he may require further security to be given at any time before giving his decision in the case.

(2) Where an application under subsection 26(1) of the Act is subject to opposition, the Registrar may require the applicant to give security for the costs of any proceedings in relation to the opposition.

(3) In default of such security as mentioned in subregulation (1) being duly given, the Registrar may treat the application or the opposition, as the case may be, as abandoned.