PART 1: INTRODUCTION

In addressing the impact and aftermath of the COVID-19 pandemic in Malaysia, the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Bill 2020 (“the COVID-19 Bill”) was tabled for its first reading on the 12th August 2020 and was passed by the Dewan Rakyat (House of Representatives) of Malaysia on the 25th August 2020. Subsequently on 22nd September 2020, the COVID-19 Bill was finally passed by the Dewan Negara (Senate). On 23rd October 2020, it received Royal Assent and is now fully effective.

The newly gazetted Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020 (“the COVID-19 Act”) provides for temporary measures to stem the fallout from the COVID-19 pandemic by modifying the provisions of 16 legislations. Some of the key changes set out in the COVID-19 Act are discussed below.

PART 2: DEFINITION OF INABILITY TO PERFORM CONTRACTUAL OBLIGATION

1) Section 7 of the COVID-19 Act states that:

"The inability of any party or parties to perform any contractual obligation arising from any of the categories of contracts specified in the Schedule to this Part due to the measures prescribed, made or taken under the Prevention and Control of Infectious Diseases Act 1988 to control or prevent the spread of COVID-19 shall not give rise to the other party or parties exercising his or their rights under the contract."

2) The categories of contracts specified in the Schedule are:

3) This legal article will now provide a quick overview on the temporary reliefs accorded to the relevant legislations under the COVID-19 Act and the effective periods for such applications of such reliefs:

PART 3: COMMENCEMENT OF MODIFICATIONS

Table A below provides a summary of the commencement date of modifications to the relevant legislations:

TABLE A

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​* Note: Date of publication of this Act is on the 23rd October 2020

PART 4: MODIFICATION OF LIMITATION PERIODS

Table B below provides a summary of the extension of limitation period for the relevant legislations:

TABLE B

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PART 5: OTHER MODIFICATIONS

Table C below provides a summary of the modifications made to some provisions of the relevant legislation:

TABLE C

Section 99

The period of limitation which expires during the period from 18 March 2020 to 15 June 2020 shall be extended until 31 December 2020.

4.

Distress Act 1951

Section 5

A landlord is prohibited from taking action under this section to recover arrears of rent for the period from 18 March 2020 to 31 August 2020.

5.

Housing Development (Control and Licensing) Act 1966

Schedules G, H, I and J of the Housing Development (Control and Licensing) Regulations 1989 ("1989 Regulation")

Modifications have been made to the following provisions in the contracts of sale prescribed in Schedules G, H, I and J of the 1989 Regulation which were entered into before 18 March 2020:

Section 16N(2)

If the limitation period for the homebuyer to file a claim has expired during the period from 18 March 2020 to 9 June 2020, the homebuyer is entitled to file the claim from 4 May 2020 to 31 December 2020 and the Tribunal for Homebuyer Claims shall have jurisdiction to hear such claim.

6.

Industrial Relation Act 1967

Section 9(3), 9(4) and 20(1A)

The period from 18 March 2020 to 9 June 2020 shall be excluded from the calculation of the period under the IRA 1967 for according recognition or notifying the trade union of workmen concerned in writing the grounds for not according recognition under the aforesaid sections.

7.

Private Employment Agencies Act 1981

Section 11(1)

The period from 18 March 2020 to 9 June 2020 shall be excluded from the calculation of the period for an application to renew a licence under the aforesaid section.

8.

Land Public Transport Act 2010

Section 21

The Director General of Land Public Transport may, on an application and subject to providing the required information by a licensed operator of a public service vehicle or tourism vehicle, authorize for a period not exceeding twelve months for the licensed operator to use the vehicle for the purpose of a public service vehicle, tourism vehicle or goods vehicle of any other class.

Section 56

The Director General of Land Public Transport may, on an application and subject to providing the required information by a licensed operator of goods vehicle, authorize for a period not exceeding twelve months the licensed operator of a particular class of goods vehicle to use the vehicle for the purpose of a public service vehicle, tourism vehicle or goods vehicle of any other class.

9.

Commercial Vehicles Licensing Board Act 1987

Section 23

The Board may, on an application and subject to providing the required information by any holder of a public service vehicle licence of a particular class, authorize for a period not exceeding twelve months the holder of a public service vehicle licence of a particular class to use the vehicle for the purpose of a public service vehicle or goods vehicle of any other class.

Section 24

The Board may, on an application and subject to providing the required information by any holder of a carrier's licence ‘C' vehicle or ‘A' vehicle, authorize for a period not exceeding twelve months the holder of a carrier's licence ‘C' vehicle or ‘A' vehicle to use the vehicle for the purpose of a public service vehicle or goods vehicle of any other class.

10.

Courts of Judicature Act 1964

New section 16A

The Chief Justice may, if the Chief Justice is of the opinion that the circumstances warrant and it is necessary in the interest of the dispensation of justice, public safety, public security, public health or propriety or for other sufficient reason to do so, issue any direction relating to the business of the Court as may be necessary.

Section 17

Renumbering the existing subsection (3A) as subsection (3B).

New section 17(3A)

The Chief Justice may, if the Chief Justice is of the opinion that any meeting is not possible to be convened, held or conducted, provide for alternative arrangements for such meeting.

New section 17(8)

The Chief Justice may, if the Chief Justice is of the opinion that the circumstances warrant and it is necessary in the interest of the dispensation of justice, public safety, public security, public health or propriety or for other sufficient reason to do so, modify any provision of the rules of court or suspend the application of such rules of court as is necessary for doing complete justice in any cause or matter pending before the Courts and to ensure that the administration of justice is carried out.

11.

Subordinate Courts Act 1948

New section 3A

The Chief Justice may, if the Chief Justice is of the opinion that the circumstances warrant and it is necessary in the interest of the dispensation of justice, public safety, public security, public health or propriety or for other sufficient reason to do so, issue any direction relating to the business of the Subordinate Courts as may be necessary.

12.

Subordinate Courts Rules Act 1955

New section 3(7)

The Chief Justice may, if the Chief Justice is of the opinion that the circumstances warrant and it is necessary in the interest of the dispensation of justice, public safety, public security, public health or propriety or for other sufficient reason to do so, modify any provision of the rules of court or suspend the application of such rules of court as is necessary for doing complete justice in any cause or matter pending before the Courts and to ensure that the administration of justice is carried out.

PART 6: CONCLUSION

As a conclusion, the COVID-19 Act seeks to alleviate some of the contractual and other issues that arose from the COVID-19 pandemic and Malaysia's movement control orders as:

Prepared by: Abu Daud Abd Rahim, Lee Kin Hing & Gabriel Yee Full Yek