Part II (Inability to Perform Contractual Obligations) of the Temporary Measures to Reduce the Impact of Coronavirus Disease 2019 Act (Covid-19) [Act 829], which will end on Dec 31, has been extended from Jan 1 to Oct 22 next year.
Minister in the Prime Minister's Department (Parliament and Law) Wan Junaidi Tuanku Jaafar said this is pursuant to subsection 5 (2) of Act 829, where a minister may by order published in the Gazette, extend the effective period of Part II but the extension shall not exceed the effective period of Act 829.
Wan Junaidi (above) said in a statement today that the extension was approved by the cabinet on Dec 22.
“This (extension) is to ensure the effective and progressive coordination of the implementation of Act 829 pursuant to the amendments made recently,” he said.
The amendments to the Temporary Measures to Reduce the Impact of Coronavirus Disease 2019 Act (Covid-19) [Act 829] were tabled by the Deputy Minister in the Prime Minister’s Department (Parliament and Law) Mas Ermieyati Samsudin and were passed by the House of Representatives on Dec 16 and in the Senate on Dec 22 unanimously.
Wan Junaidi said the amendments of Act 829 were the government's commitment to mitigate the legal impact due to the implementation of the movement control order (MCO) enforced to curb the spread of COVID-19.
“This act provides temporary relief to parties from performing their contractual obligations for a specified period,” he said.
He said amendment to subsection 9(1) of Part II – Inability to Perform Contractual Obligations will assist mediation service initiatives under Pusat Mediasi Covid-19 (PMC-19), a government agency set up in Nov 2020.
Through the amendment, all types of commercial contracts affected by the implementation of MCO can be referred to PMC-19 as compared to the previous nine categories of the contract stipulated in the Schedule in Section 7.
PMC-19 is in partnership with the Malaysian Bar, Advocates Association of Sarawak and Sabah Law Society to conduct mediation services for individuals and businesses whose contracts are affected by the implementation of the MCO.
The Malaysian Bar and government launched a Mediate First Campaign on Nov 18 this year, where lawyers pledged to assist clients who were looking for swift solutions to contractual disputes following the implementation of the MCO.
About 50 law firms have stepped up to provide the Mediate First Pledge and the list can be found on the PMC-19 website.
The Temporary Measures to Reduce the Impact of Coronavirus Disease Act 2019 (Covid-19) 2020 was gazetted on Oct 23, 2020, and to be effective for a period of two years from the date of publication in the Government Gazette.
- Bernama
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