Two days ago the Parliament tabled the Malaysian version COVID-19 Bill. It appears that the Bill may have come in late but then again better late than never. The following are the highlights of the Bill.
The proposed Act is to be in operation for two years but may be extended further by the Prime Minister. A string of statutes are amended in one fell swoop. The provisions of the Act are also to supersede the provisions of other written laws to the extent of inconsistency.
Contractual protection
This Part is deemed to be in operation since 18.3.2020 and delivers the contractual protection to parties who failed to meet their contractual obligations due to the laws made to control the spread of COVID-19. Such failures would not entitle the other party to exercise their rights to remedy under the contract. The contracts are however limited to those in the Schedule and may be amended later. The contracts currently covered are contracts for construction and supply of workers and materials for construction, professional services, lease or tenancy of non-residential property, event contracts and pilgrimage related.
Any disputes arising from failures to meet the obligation during this period may be resolved by way of mediation process determined by the Minister of Law. The mediation process is however not couched as mandatory.
This contractual protection would not affect the actions already taken in relation to the failures before the publication of the Act. This makes one wonder how effective is the protection going to be and whether the delay in enacting this Act is going to cause irreparable harm to the affected parties.
Extension of limitation period
Part III – VI deals provides for extension of limitation. This part is deemed to be in operation since 18.3.2020 and continues until 31.12.2020. The affected laws are Limitation Act 1953, Sabah Limitation Ordinance, Sarawak Limitation Ordinance and the Public Authorities Protection Act 1948. For the Limitation Act, the limitation period under s 6 that expires during the period 18.3.2020 to 31.8.2020 are automatically extended to 31.12.2020. For the Public Authorities Protection Act, the limitation that expires between 18.3.2020 to 31.8.2020 are similarly extended to 31.12.2020.
Extending the amount of indebtedness for insolvency proceedings
Part VII deals with insolvency actions and is given limited life time till 31.8.2021 only and may be extended later by the Minister. The threshold for bankruptcy actions is extended to RM100,000 without affecting the actions already commenced before the publication of this Act.
Protection to hirers
Part VIII deals with modifications to Hire Purchase Act 1967 and is to be in operation between 1.4.2020 to 31.12.2020. The owner under the hire purchase agreement may not exercise the power of re-possession for any default of instalment during the period 1.4.2020 to 30.9.2020 without affecting actions already taken before the publication of this Act.
Protection to tenants
Part X modifies Distress Act 1951 and is to be in operation from 18.3.2020 to 31.12.2020. A warrant of distress is not to include arrears of rent during the period 18.3.2020 to 31.8.2020 without affecting distress proceedings already commenced.
Protection to housebuyers
Part XI modifies the Housing Development (Control and Licensing) Act 1966 and is deemed to be in operation on 18.3.2020. This covers the statutory contracts of sale entered into before 18.3.2020. The developer is not allowed to impose late payment interest on purchasers who failed to pay any instalment for the period 18.3.2020 to 31.8.2020 due to the measures under the movement restrictions laws. The purchaser may also apply for the extension of the period to the Minister and the Minister may extend the no-interest period up to 31.12.2020. The period 18.3.2020 to 31.8.2020 is also excluded from the computation of the time for delivery of vacant possession and payment of liquidated damages for late delivery. The Minister may extend the period until 31.12.2020 upon the application of the developer. A purchaser who receives the notice to take vacant possession during the period 18.3.2020 to 31.8.2020 is deemed not to have taken such possession. The computation of defect liability period also excludes the period 18.3.2020 to 31.8.2020 and may be extended by the Minister upon the application of the purchaser. The limitation period for buyers to file a claim at the Homebuyers Tribunal that expired during the period 18.3.2020 to 9.6.2020 is extended from 4.5.2020 to 31.12.2020 and the Tribunal shall have jurisdiction over such claims.
Modifications to the Industrial Relations Act 1967
Part XII deals with this. The period 18.3.2020 to 9.6.2020 is excluded from the calculation of the statutory period for lodging of representation, according recognition of trade union and report to the Director General.
Modifications to the Courts of Judicature Act 1964 and related Acts
Part XVI deals with this and is to be in operation from 18.3.2020. The Chief Justice empowered to issue any direction relating to the business of the Court as may be necessary in the interest of justice, public safety and health or for other sufficient reason. A new provision is inserted empowering the Chief Justice – in the interest of dispensation of justice, public safety and health – to modify any provision of the rules of court or suspend the application of such rules as may be necessary to do complete justice and to ensure that the administration of justice is carried out. Similar amendments are also made to the Subordinate Courts Act 1948 and the Subordinate Courts Rules Act 1955. This amendment that empowers the Chief Justice in respect of the rules is likely to attract spotlight from the Bar as the rules of courts have primarily been within the ambit of the Rules Committee in which the Bar is also represented.
General powers to extend time and alternative arrangements for statutory meeting
Part XIX empowers the Ministers responsible for any Act to extend the statutory time for carrying out of statutory obligations that were not possible to be performed during the period 18.3.2020 to 9.6.2020 due to the movement restriction laws. The Minister is also empowered to provide alternative arrangements for meetings that could not be convened earlier due to the laws.
R. Jayabalan
