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Key Takeaways of the Malaysia’s Covid-19 Bill 2020

The Malaysia’s Temporary Measures For Reducing The Impact Of Coronavirus Disease 2019 (Covid-19) Bill 2020 (also known as the “Covid-19 Bill”) has been tabled in parliament for first reading. As it stands, no litigation/arbitration/adjudication proceedings can be commenced during the effective period.

Key Takeaways

In summary, the key takeaways of the Covid-19 Bill include, amongst others, the followings: –

  1. Suspend the obligations of a number of contracts listed under its schedule (construction contract included);
  2. Provide an extension of the limitation period expiring during the period from 18 March 2020 to 31 August 2020 to 31 December 2020;
  3. Suspension and expansion of statutory obligations under the Insolvency Act 1967, Consumer Protection Act 1999, the Distress Act 1951,  the Housing Development (Control and Licensing) Act 1966, the Industrial Relations Act 1967, the Private Employment Agencies Act 1981, the Land Public Transport Act 2010, the Commercial Vehicles Licensing Board Act 1987, the Courts of Judicature Act 1964, the Subordinate Court Act 1948;
  4. The Covid-19 Bill has a saving provision in terms of its moratorium i.e. if you are to take any steps right now to assert your rights until the publication of the Act itself (terminating agreement, forfeiture of deposits, commencing court proceedings, etc), the Act will not seek to suspend those proceedings/rights that you have taken now; and
  5. The Covid-19 Bill has a mediation provision where the procedure for mediation is to be determined by the minister.


Datuk Professor Sundra Rajoo

President of the Asian Institute of Alternative Dispute Resolution (AIADR)

14 August 2020

Disclaimer: The contents herein does not and is not intended to constitute legal advice. All information, content, and materials are for general informational purposes only. 

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