MRCA Event
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MRCA Legal Consultative Dialogue On 4 June 2021, MRCA conducted a legal consultative dialogue featuring legal experts that included Dato’ Manjit Singh, Managing Partner of Manjit Singh Sachdev, Mohammad Radzi & Partners and Datuk Ringo Low, Managing Partner of Ringo Low & Associates. The session was moderated by Dr Afendi Dahlan, Business and Legal Director of DR Group Holdings Sdn Bhd.
he session addressed important topics that are abuzz in the retail industry currently. Concerns from retailers were raised during the session in view of the COVID-19 pandemic that has been affecting the retail industry in many aspects. Both Dato’ Manjit and Datuk Ringo shared their perspectives on the questions posed from the floor. The session enlightened MRCA participants on the laws and regulations that are in force as well as the extent to which retailers are protected by the COVID-19 Act.
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Q1
In view of the COVID-19 Act, what are the chances of the landlord suing the tenant for damages and evicting the tenant? How does the COVID-19 Act affect the parties for termination of tenancy before the due date? Panelists: The tenancy agreement is binding for both parties. The tenant is protected from being sued if they are within the period of the COVID-19 Act and if the landlord pursues the matter, the tenant can refer the matter to the Minister under this Act. A mediator will be appointed by the Minister in charge of Legal Affairs in the Prime Minister’s Department (the Minister), to arrive at a settlement, which is binding on both parties. The protection that this Act offers is limited to that particular period.
Malaysia Retailer Vol 9 No 2
Q2
With sales impacted by the pandemic and tenant unable to pay rental, is the COVID-19 Act applicable to the tenancy agreement between shopping mall and tenant? If yes, what is the impact on the rental payment? Is the landlord eligible to collect the late payment interests? Is there any other means of recovery of the outstanding if they are unable to proceed with the legal procedures under the COVID-19 Act? Panelists: The main courses a landlord can take include applying for Writ of Distress for rentals owing not exceeding 11 months. This can be obtained within a period of 3 months where the property in the premises will be seized and auctioned to fulfil unpaid rentals. Another course of action is to sue for damages for unpaid rentals which may take between 6 to 12 months. It is not as simple for a tenant to claim that they are unable to pay rental as a result of the government’s MCO
measures as the tenancy agreement is not solely resting on the MCO circumstances. At the same time, the tenant has the right to go to the Minister and state the case that the business is unable to operate and be profitable. The Minister will appoint a mediator and come to a settlement or resolution.
Q3
Are employers able to claim compensation from the state governments if staff experience serious side effects? Panelists: The Federal government has announced that they have allocated RM10million for individuals affected by side effects of this vaccination that require lengthy treatment or resulting in death. However, the state governments have not come up with any announcement on any
