Getting paid: A New Bill to streamline Construction Disputes in Thailand

Construction disputes between contractors and employers in Thailand can take years to be resolved in court or arbitration. This can result in construction work being delayed and sometimes abandoned, and contractors facing financial difficulties. In response, Thailand is considering the introduction of a draft bill titled “Act on the Settlement of Disputes regarding Payment in Construction Contracts”. Read more

Directors Beware: Indemnity in a Company’s Constitution is not Foolproof

The constitution (formerly known as articles of association) of companies in Malaysia generally contains an indemnity provision in favour of directors, indemnifying them against liabilities (for example, associated legal fees and financial costs) incurred by the directors in defending legal suits by third parties where judgement has been given in their favour in respect of any negligence, default, breach of duty or breach of trust. However, to what extent can the directors solely rely on an indemnity provision in a company's constitution to bring an indemnity claim against the company? Read more

The rise of ESG – implications on the duty to act in the best interest of the company

Globally, there has been an increasing recognition that the conduct of a company affects various stakeholders around it, and that companies should have regard to environmental, social, human, and economic considerations. These considerations – commonly referred to as ESG considerations – once seen as a voluntary part of companies' corporate governance framework, are now rapidly being enacted into hard law across different jurisdictions. Read more

Malaysian High Court clarifies limits on stay conditions

The Malaysian High Court has refused to impose a condition on a party seeking a stay of proceedings under section 10 of the Arbitration Act 2005 to pay its share of the deposit in the arbitration, on the basis that the issue of costs and expenses of an arbitration are within the exclusive jurisdiction of the arbitral tribunal. This decision highlights that the Malaysian court's power to impose conditions on a stay under section 10 of the Act does not extend to matters that are governed by the Act and within the exclusive jurisdiction of the arbitral tribunal. Read more

Infrastructure development under the 12th Malaysia Plan

Infrastructure development has always had strong correlation with a country's economic advancement. With the recently announced 12th iteration of the Malaysia Plan (2021-2025), the Malaysian government has allocated RM400 billion for existing and new developments. The plan details key focuses on its intended economic priorities which includes significant and strategic infrastructure developments that can carry growth potential for foreign investors in these unique and unprecedented times. Read more

Launch of Malaysia Overnight Rate (MYOR) by Bank Negara Malaysia

Bank Negara Malaysia has announced the launch of the MYOR as the new alternative reference rate (ARR) for Malaysia. Globally, ARRs are being introduced as part of a transition to transaction-based rates, in line with the LIBOR reforms after the global financial crisis. The introduction of ARRs aims to facilitate usage of benchmark rates that are more robust and based upon transactions in active, liquid markets. Read more

High Court clarifies Covid-19 Act relief for parties unable to perform contractual obligations

The Malaysian High Court has clarified when a party will be considered unable to fulfil its contractual obligations for the purposes of relief against contractual claims under Section 7 of the Covid-19 Act. The Ravichanthiran decision clarifies the test to be met by parties seeking to rely on the provision and affirms the Malaysian courts' approach of keeping parties to their contractual obligations. Read more

High Court refuses indemnity costs on successful application for referral to arbitration and determines the effect of time bars on a tribunal’s jurisdiction

Following the High Court decision in Lineclear Motion Pictures Sdn Bhd v Measat Broadcast Network Systems Sdn Bhd, a party seeking indemnity costs upon successfully obtaining a stay bears the burden to demonstrate unreasonable conduct by the breaching party, and reasonable conduct on its own part, to obtain indemnity costs. Read more