Malaysia | Newsletter - June 2021

To read the articles below, please click here.

Transition from LIBOR

The Financial Conduct Authority (“FCA”) in the United Kingdom announced in 2017 that it would no longer be necessary to persuade or compel banks to submit the rates required to calculate LIBOR after 31 December 2021.

In this article, Krystle Lui Shu Lin reports on the transition from LIBOR rates to risk-free rates.

The Malaysian Code on Corporate Governance

The Securities Commission Malaysia (“SC”) has published a revised version of the 2017 Malaysian Code on Corporate Governance (“2017 MCCG”), which is effective from 28 April 2021 (“2021 MCCG”). The first batch of companies to report on their adoption of the 2021 MCCG practices will be those with financial years ending 31 December 2021¹.

In this article, Teo Eu John examines amendments to the Malaysian Code on Corporate Governance

Goodwill in a Name 

On 20 May 2021, the Federal Court delivered its decision in a passing off case, Mohammad Hafiz Bin Hamidun v Kamdar Sdn Berhad . The Court had granted leave for two questions raised by the appellant/plaintiff, of which the first question was:

“In a common law claim for passing off where two (2) entities may be entitled to claim goodwill, who has the locus standi to commence an action in passing off as the owner of such goodwill?”

A case note by Pravind Chandra.

Agro-Mod Industries Sdn Bhd v Goods and Services Tax Appeal Tribunal and Director General of Customs

Recently, the Court of Appeal ruled in Agro-Mod Industries Sdn Bhd v Goods and Services Tax Appeal Tribunal and Director General of Customsⁱⁱⁱ on the issue of whether the goods and services tax (“GST”) was chargeable on the sale of agricultural land under a contract entered into before GST was implemented with effect from 1 April 2015 (“Effective Date”).

A case note by Jeevitha Thurai Rathnam.

Case Update on the Acceptance of Covert Recording as Evidence in an Employment Dispute 

In the Industrial Court Award of Kavitha Chakravarthy v Malayan Banking Berhad¹, the Industrial Court allowed a secret recording to be admitted as evidence as it was relevant for the Court to determine the facts in dispute between the parties.

A case note by Jamie Goh Moon Hoong.

Clarity on Show Cause Notice(s) Prior To Party- Initiated Committal Proceedings 

On 18 February 2021, the Federal Court delivered its decision in Tan Poh Lee v Tan Boon Thien¹. The Federal Court had previously granted leave on 18 August 2020 for two questions raised by the Appellant (translated verbatim from Bahasa Malaysia):

• Whether the true interpretation of Order 52 Rule 2B, Rules of Court 2012, is that prior Notice to Show Cause is required to be given to the proposed contemnor before the filing of an ex parte application for leave pursuant to Order 52 Rule 3, Rules of Court 2012 (“First Leave Question”).
• Whether based on the true interpretation Order 52 Rule 2B, Rules of Court 2012, the notice to show cause referred to in Order 52 Rule 2B, Rules of Court 2012 means documents referring to that in Order 52 Rule 4(3), Rules of Court 2012 (“Second Leave Question”).

A case note by Sharon Jessy.

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