Malaysia’s COVID-19 Act: Contractual Reliefs Extended to 31 March 2021

Malaysia’s Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19)  Act 2020 (the COVID-19 Act) (I have written more about this here) will see an extension of its key relief on the inability to perform contractual obligations in terms of time period as well as two additional types of contracts.

Under the original COVID-19 Act, Part II provided for relief against the inability to perform contractual obligations for the seven types of contracts listed in its Schedule.

We see two key changes through these gazetted notices dated 29 December 2020.

First, through the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) (Extension of Operation) Order 2020, Part II of the COVID-19 Act has been extended for the period from 1 January 2021 to 31 March 2021. This means there will be continued protection and relief, but also uncertainty, on the application to contractual obligations for the contracts in the Schedule.

Second, through the Temporary Measures for Reducing the Impact of Coronavirus Diseas 2019 (COVID-19) (Amendment of Schedule) Order 2020, the Schedule of contracts will now include two additional types of contracts.

The first category of the additional contract will be certain types of hire-purchase agreements under the Hire-Purchase Act entered into by micro enterprises, B40 or M40 class of persons as specified in the Inland Revenue Board of Malaysia database. The types of vehicles are motor vehicles, good or public service vehicle, and tourism vehicle.

The second category of the additional contract is a credit sales contract under the Consumer Protection Act 1999.

Read more in my articles on the COVID-19 Act:

Leave a Reply