Sanctions and Material Adverse Change Provisions

Craig Shepherd and Arnold Hoong have recently published an article in the Global Arbitration Review’s Asia-Pacific Arbitration Review 2023 on the contractual effects of sanctions on construction projects. The article explored the effect of sanctions on contractual obligations within projects in the Asia-Pacific region as well as globally, and discusses what project owners and contractors … Read more

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

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 … 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

High Court declines to stay arbitration proceedings on the basis of a non-signatory’s allegation of bribery and corruption underlying the contract

In Vertex Superieur Sdn Bhd & Anor v Shell Malaysia Trading Sdn Bhd, the High Court refused to stay court proceedings brought in breach of an arbitration agreement on the basis that it was in the public interest that allegations by a non-signatory that an underlying contract was procured by private bribery and corruption should be tried expeditiously through court proceedings. Read more