The Malaysian Bar has “strongly urged” the Government to enact a “Covid-19 law” similar to the one enacted in Singapore, saying that it must be in place before the country emerges from the movement control order (MCO).
In expressing concern that the government has scheduled a one-day sitting of the Dewan Rakyat on May 18, the Bar said urgent legislation is needed now to protect individuals, businesses and companies from the consequences of being unable to perform or fulfil their contractual obligations arising from the measures taken in relation to Covid-19 prevention.
Its president Salim Bashir urged the government to introduce the law as soon as possible, and to extend the sitting of the Dewan Rakyat to cater for this.
“The Dewan Negara also needs to meet, in order that Parliamentary business can fully take place.
“The urgent needs of the rakyat and vital interests of the nation need to be immediately deliberated on, debated and decided. Other legislatures elsewhere in the world have shown that, with a bit of creativity and out-of-the-box thinking, Parliamentary business can and does proceed with sufficient physical-distancing precautions. We must also do the same,” he said in a statement on Wednesday (April 29).
Salim said that in Singapore, legislation was introduced in the second week of April 2020 to ensure that, amongst other things booking deposits could not be forfeited for wedding or business functions that had to be postponed, and termination of business premises leases due to non-payment of rent.
He added that in the United Kingdom, the Coronavirus Act 2020 was introduced in March 2020 to allow for regulations to be made regarding employment contracts to protect employers and employees.
Salim said that measures that have been announced by the government in relation to commercial activity — apart from ordering businesses and shops to shut or open — lack legitimacy as they are being implemented by way of administrative directives.
He said these administrative directives tend to apply only to regulated institutions such as financial institutions, government-linked corporations, government departments, and government agencies.
“These do not include the vast number and varied nature of private business transactions, for example supply agreements, sale and purchase agreements, the majority of employment contracts, and rental or hire agreements.
“While some contracts may have provided for exceptional circumstances, with the use of a “force majeure” clause, many will have not. Even contracts with force majeure clauses may not be sufficient to avoid termination and/or penalties for non-performance. Legal protection from the unintended non-performance of contracts, needs to be provided for specifically, and enacted by way of legislation, so as to provide comprehensive coverage,” said Salim.
