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

Launch of AIAC Arbitration Rules 2021

The Asian International Arbitration Centre has launched the latest revisions to its Arbitration Rules, following their last update in 2018. Upon coming into effect on 1 August 2021, the AIAC Arbitration Rules 2021 will apply to all AIAC arbitrations commenced after this date unless parties agree otherwise. Read more