Malaysia’s Covid-19 Act: Contractual Reliefs Extended to 31 December 2021

The COVID-19 Act’s contractual relief provisions have been further extended from 30 June 2021 to 31 December 2021 (see PU(A) 287/2021). The COVID-19 Act’s full name is the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020. As explained below, we may see very little practical application of the contractual relief provisions. Continue reading

Malaysia Chapter: INSOL-World Bank Group Global Guide Covid-19

The INSOL-World Bank Group has updated its Global Guide on measures adopted to support distressed businesses through the Covid-19 crisis. The publication is now updated to the changes as at April 2021. I had earlier posted up the earlier edition of the guide as at April 2020.

The Global Guide covers 80 countries, and how each country had tackled the Covid-19 crisis through governmental, regulatory and legal relief measures.

Nathalie Ker and I contributed the Malaysia chapter for the INSOL-World Bank Global Guide.

In comparison with global trends, Malaysia has not been quick enough to update laws to provide the full range of reliefs for distressed businesses.

 

Malaysia’s COVID-19 Act: Contractual Reliefs Extended to 30 June 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 the COVID-19 Act here) will see an extension of its key relief on the inability to perform contractual obligations. The relief has been extended to 30 June 2021.
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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. Continue reading

5 Weaknesses in Malaysia’s Covid-19 Bill for Contract Obligations

[Update: On 23 October 2020, Malaysia brought into force its COVID-19 Act, with the full name Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020.]

Malaysia’s Covid-19 Bill (the full name being the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Bill) was tabled for first reading in the Dewan Rakyat (the lower house) of Parliament on 12 August 2020. I had written about the Covid-19 Bill here. One important measure is to provide relief for inability to perform contractual obligations for the seven categories of contracts. This applies from 18 March 2020 to 31 December 2020. On this aspect, I set out five weaknesses or ambiguities in the Covid-19 Bill.

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5 Key Reliefs in Malaysia’s Covid-19 Bill: Better Late than Never?

[Update: On 23 October 2020, Malaysia brought into force its COVID-19 Act, with the full name Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020.]

Malaysia has tabled its Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Bill (Covid-19 Bill) in Parliament. The Bill states that it will have retrospective effect from 18 March 2020. This Covid-19 Bill and the eventual Act may alleviate some of the contractual and other issues that arose from the COVID-19 pandemic and Malaysia’s movement control restrictions.

However, with this Bill only being passed sometime in August 2020, is this a case of too little, too late?  We will have to see whether Malaysia’s Covid-19 Bill can help businesses and companies.

I touch on five key areas in the Covid-19 Bill.

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