Feature
30
Malaysia Needs a Covid-19 Act to Protect Businesses and Jobs A coalition of Malaysia’s business communities from various associations, including MRCA and trade bodies, urges the Government to implementation of Covid-19 Bill/Act (Temporary Measures). The online press conference in late April was done through Zoom e-Conferencing.
his is the first time in Malaysia’s history that various associations came together and conducted an e-press conference using Zoom and broadcasted it live on Facebook to appeal to the Malaysia Government to protect and save businesses, which ultimately save jobs. The coalition said the Covid-19 Bill/ Act would provide at least a temporary period to 31 December 2020 (with necessary extension when the needs arise), until businesses could resume full operations.
T
POST MCO Many businesses, especially in the retailing, manufacturing and servicing industries, have business contractual commitments where their financial commitments will be enforced and legal disputes will take place in abundance which will impact their business survival. MRCA honorary auditor Datuk Seri Raymond Liew said, it was of paramount importance for a Covid-19 Bill/Act (Similar to the Singapore Covid-19 (Temporary Measures) Act) to be put in place to protect business owners from legal suits when they are unable to fulfill
Malaysia Retailer Vol 8 No 2
their contractual obligations in order to sustain their businesses post-MCO. “Furthermore, the Bill/Act should provide for the sharing of financial burden from owners of shopping malls, shop lots, offices and factory for a reduction in rental. Therefore a Covid-19 Bill has to be introduced to enable businesses to receive temporary relief as many business owners will find themselves unable to fulfill their contractual obligations,” said Datuk Seri Raymond who read out the appeal of the coalition.
TO 1PROHIBITION TAKE LEGAL ACTION
Appropriate measures need to be spelt
out in the proposed Covid-19 Bill/Act to certain contracts that prohibit certain legal actions to be taken between counter parties and/or their guarantors, if the counter parties are unable to perform such contracts due to, a material extent, caused by Covid-19. This includes not only leases (rent) but the supply of constructions materials, performance of private corporate bonds, performance of provision of goods and services for events, performance of goods and services related to tourism, performance of private hire purchase related to factoring service provider and repossession of goods used for the purpose of a trade and business.
Pertinent Points
• The relief imposed by law will save jobs, businesses, companies and investments which will then continue to multiply the economy.
• Contracting parties will not waste time and resources fighting in court over application of doctrine of frustration or meaning of Force majeure Clauses. Hence there will be legal certainty resulting in commercial certainty. • Preserve legal rights such as right of legal action by stopping limitation. This Bill/Act is only a temporary measure till end of the year (or extended as and when the needs arise). When the Bill/Act is passed, the contractual obligations will continue unabated.
