Articles

Staying ahead of the curve. Expert analysis on the latest Malaysian legal developments and business trends.

Beyond The Leasehold Misapprehension: Clarifying the need for the state authority’s consent in property transactions

Introduction In Malaysia, it is often misunderstood that state authority’s consent is exclusively a requirement for leasehold properties. This oversimplification neglects to acknowledge that certain freehold properties may also necessitate such approval, particularly when express restrictions are im…

Read More

THE PASSING OF THE PERSONAL DATA PROTECTION (AMENDMENT) BILL 2024

Introduction In line with Malaysia’s commitment to enhance personal data protection and align with international standards, the recent passing of the Personal Data Protection (Amendment) Bill 2024 (“Amendment Bill”) marks a significant milestone. The Amendment Bill successfully passed through both c…

Read More

Empowering Malaysia’s EV Charging Ecosystem: Exploring Rental Model for EV Charger Installation

In tandem with Malaysia’s ambitious targets to promote electrified vehicles and expand the nation’s charging infrastructure, the installation of EV chargers has recently garnered significant attention. With a national goal of producing 15% electrified vehicle by 2030 and the installation of at least…

Read More

IMPLICATIONS OF TERMINATION FOR CONVENIENCE CLAUSE IN CONSTRUCTION CONTRACT

What is Termination for Convenience Clause? Termination for convenience clause is relatively common in a construction contract in Malaysia. Generally, a termination for convenience clause allows a party to unilaterally terminate a contract without the default of the other party. In a construction co…

Read More

INTRODUCTION TO FRANCHISE BUSINESS

1. What is franchise? Franchise is a type of business in which the franchisor grants a franchisee the right to operate a business in accordance to the franchise system for a term as determined by the franchisor. Despite the aforesaid, the franchisor continues to possess the right to administer contr…

Read More

IMPROVEMENTS TO NET ENERGY METERING (NEM) SCHEME AND SELF-CONSUMPTION (SELCO) SCHEMES

Alongside with the recent announcement made by the Ministry of Natural Resources, Environment, and Climate Change regarding the new Imbalance Cost Pass-Through (“ICPT”) mechanism on 23 June 2023, the Ministry has also introduced relaxations to the NEM and SelCo schemes to promote the installation of…

Read More

Joint Divorce Petition (Non-Islamic) in Malaysia

Joint Divorce Petition (Non-Islamic) in Malaysia For non-Muslim or civil marriages in Malaysia, the Law Reform (Marriage and Divorce) Act 1976 (“LRA”) applies and is enforceable under the civil law courts in Malaysia. The procedures of a civil divorce petition: 1. Preparation of divorce pe…

Read More

Discharge of Bankrupt with Debts Below RM50,000 – Have Creditors Lost Their Right to Object?

The procedures of a civil divorce petition: During the tabling of Budget 2023 on 24 February 2023, our Prime Minister, Datuk Seri Anwar Ibrahim announced that the government would amend the Insolvency Act 1967 (“IA 1967”) to enable bankrupts to be discharged. This move is expected to release 130,000…

Read More

From the Perspective of a Contractor: Is EPCC Contract Non-Negotiable?

From the Perspective of a Contractor: Is EPCC Contract Non-Negotiable? Typically, EPCC contract has always been perceived as a pro-employer contract due to the inequality in bargaining power. Employer undoubtedly possess a higher bargaining power compared to the contractor. Despite the above, does t…

Read More

Net Energy Metering (“NEM”) 3.0

Introduced in 2016, NEM is a program initiated by the Ministry of Energy, Green Technology and Water (“KeTTHA”) to allow solar photovoltaic system owners to generate, use and export the net excess energy to the grid. The NEM scheme was further improved in 2019 by the Ministry of Energy, Science, Tec…

Read More

The Importance of EPCC Contract

In the construction industry, it is not unusual that the parties rely on a proposal or simple letter of award to engage in a construction work. Whilst it is not legally wrong to rely on such letter of award or proposal, however, have you ever pondered the sufficiency of such documents to protect you…

Read More

Performance Ratio Guarantee or Energy Output Guarantee: Which Guarantee Works Best For You?

Performance ratio guarantee and energy output guarantee are two common types of guarantee given by the engineering, procurement, construction and commissioning (“EPCC”) contractor for the installation of a solar photovoltaic (“PV”) system. In order to determine which form of guarantee works best for…

Read More

Basics of Power Purchase Agreement (PPA)

Basics of Power Purchase Agreement Following the continuous efforts by the Government of Malaysia to stimulate the development of renewable energy sector in Malaysia, such as the Green Technology Financing Scheme and the Green Investment Tax Allowance, many companies begin to realise the benefits of…

Read More

“Owning” a Solar Photovoltaic System: Outright Purchase or Solar Power Purchase Agreement (PPA)?

“Owning” a Solar Photovoltaic System: Outright Purchase or Solar Power Purchase Agreement (PPA)? Thanks to the continuous efforts from the government of Malaysia, more and more incentives and schemes such as Net-Energy Metering (NEM), Green Investment Tax Allowance (GITA), Green Technology Financing…

Read More

Understanding Supply Agreement with Renewable Energy (SARE)

Understanding Supply Agreement with Renewable Energy (SARE) With the growing popularity of the Solar Power Purchase Agreement (“PPA”) scheme in Malaysia as an alternative approach for business owners to embark into the green energy journey, solar photovoltaic (PV) system investors (“Investor”) begin…

Read More

Are you ready for Section 17A of MACC Act 2009?

Generally, corruption is an abuse of entrusted power for private gain. Failure to tackle corruption efficiently will result in socio-economic issues such as shadow economy, inefficient allocation of resources, low-quality healthcare, and education system. According to an address by the Secretary Gen…

Read More

Distribution of Estate – Taking Control or Being Controlled?

As of 22 June 2020, Covid-19 has taken a total of 468,061 lives worldwide and the figure is increasing day by day. In Malaysia alone, 121 individuals succumbed to death due to Covid-19. The benefits of having a valid will in placed are well recognised by many individuals but when it comes to produci…

Read More

Claiming LAD under Construction Contract – Do You Needto Prove Damages?

Liquidated and Ascertained Damages (“LAD”) is commonly found in construction contract as a pre-determined and agreed amount between the contracting parties in the event of the delay in the completion of works. The nature of a LAD clause is that once the contractor fails to complete the scope of work…

Read More

Trademark in Malaysia – Single Class or Multiple Class?

On 27 September 2019, Malaysia officially acceded to Madrid Protocol (“Protocol”), historically marked Malaysia as the 106th member of the Madrid System. The Protocol is enforced in Malaysia since 27 December 2019. Correspondingly, the long-awaited Malaysia new Trademarks Act 2019 (“TMA 2019”) …

Read More

Covid-19 Outbreak – An Excuse for Non-Performance of Contract?

First reported in Wuhan, China in December 2019, Covid-19 is a respiratory illness that causes coughing, sore throat, fever and shortness of breath. As at the date of writing this article, Covid-19 has affected 170 countries with 208,172 confirmed cases and 8,272 death, prompting World Health Organi…

Read More

Due Diligence – A Director’s Life Jacket

Due Diligence – A Director’s Life Jacket The new Companies Act 2016 (“CA 2016”) imposes heavier sanctions for directors who breach the Act. The RM30,000 fine under the old Companies Act 1965 has been raised to a 100-fold increase to RM3,000,000.00. Hence, directors who are found guilty of breaches c…

Read More

Discharge From Bankruptcy

In March 2018, it was reported that there are more than 300,958 bankrupts in Malaysia of which more than 60% of them aged between 35 to 54 years. If you are one of the individuals that fall within this category, read on to find out how you can discharge yourself from bankruptcy. In Malaysia, there […

Read More

Dissolution of a Limited Liability Partnership

The limited liability partnership (“LLP”) model is slowly gaining popularity in Malaysia due to the flexibility offered in terms of incorporation, maintenance and termination of business. Despite the easy maintenance of a LLP, it is recommended to dissolve the LLP if the LLP is no longer in operatio…

Read More

Principles under the Personal Data Protection Act (PDPA) 2010

The Personal Data Protection Act 2010 (“PDPA 2010”) was passed by the Malaysian parliament and came into force on 15 November 2013. With the aim of regulating the processing of personal data in respect of commercial transactions, the PDPA  2010 applies to any transaction of a commercial nature …

Read More

Is it impossible to dismiss an employee lawfully in Malaysia?

A couple of weeks ago, I attended an employment seminar and some of the attendees seated next to me are either business owners and HR executives from start-ups, SMEs and leading MNC in Malaysia. Upon chatting up with them, they told me that they are quite worried in hiring new employees and most of …

Read More

Compliance with the Personal Data Protection Act (PDPA) 2010

With the advancement of technology, business owners in Malaysia have been blessed with abundance of innovative methods to commercially exploit personal data. Recognising the importance of protecting personal data, the Malaysian parliament passed the Personal Data Protection Act 2010 (“Act”…

Read More

Tenancy: Compensation for Premature Termination

In most tenancy agreements, a default clause on termination would normally be prescribed. The standard default clause would provide, among others, that should the tenant wishes to terminate the tenancy before the expiration of the term of the tenancy, the tenant would need pay some form of compensat…

Read More

Something to Ponder: Insertion of Article 121 (1A) and the Concurrence of Sabah and Sarawak

A Constitution of a State has long been accepted and referred to as a ‘Bible’ for the running of the State. It regulates the powers and functions of the institutions of government, safeguards the interest of the nation and its citizens, and structures the relationship between the component State its…

Read More

The Position of “Without Prejudice” Letter

Generally, a “without prejudice” letter is a privileged document that specifically relate to negotiations genuinely aimed at a settlement between parties in a dispute. It is settled law that letters written without prejudice are inadmissible. In the case of Malayan Banking Bhd v Foo See Moi [19…

Read More

Filing small claims at the Magistrates’ Court in Malaysia

Have you ever wondered if it is worth to file a matter at court to claim for a small sum (i.e. not more than RM5000)? Why not? Sometimes it’s not just about the money, especially when you do not want these irresponsible perpetrators to get away scotch free. Most of the time, such culprits will [&hel…

Read More

Private Caveat is not a security for all

In the corporate world, no matter how harmless or risky a transaction can be, we would always opt for layers of protections in order to secure our interest. As technology progresses and competition mounts, individuals and corporations are becoming more creative in protecting their interests in every…

Read More

An “Escape” from being a Bankrupt

Are you currently having a bankruptcy proceeding initiated against you? Here is a way for you to “escape” from being declared a bankrupt. On 6 October 2017, the new Bankruptcy (Amendment) Act 2017 (also known as Insolvency Act 1967/ hereinafter referred to as the “New Act”) came into force…

Read More

Publication of Materials against the Precepts of Islam: Publishers and Bookstores Beware!

The State Legislative Assembly (“SLA”) has the power to enact a law which was restrictive or has the potential to restrict freedom of speech and expression, in order to control religious publication which was contrary to Islam.[1] The legislation is considered as a measure to prohibit the disseminat…

Read More

Top reasons why you should register your trademark in Malaysia

A client of mine recently asked me a question – how can I prevent my sales agent from using my brand name/ mark upon the expiry of the term of agreement with me? He has a legitimate question here and I’m sure many business owners/ employers will be worrying about the same thing – what […]

Read More