Malaysia: Covid 19: Part II Of The Temporary Measures Act 2020 Further Extended

The operation of Part II of the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Act 2020 ("the Temporary Measures Act") which was due to expire on 31 March 2021¹ has been extended to 30 June 2021.²

In essence, Part II of the Temporary Measures Act provides, inter alia, that:

1. the inability of any party to perform any contractual obligation arising from any of the categories of contracts specified in the Schedule to Part II of the Temporary Measures Act ("scheduled contract") due to the measures prescribed, made or taken under the Prevention and Control of Infectious Diseases Act 1988 ("the PCID Act") to control or prevent the spread of Covid-19 shall not give rise to any other party exercising his rights under the contract; and

2. any dispute in respect of any inability of any party to perform any contractual obligation arising from any scheduled contract due to the measures prescribed, made or taken under the PCID Act to control or prevent the spread of Covid-19 may be settled by way of mediation.

Our previous Alerts on Part II of the Temporary Measures Act can be read here, here and here.

Footnotes

1 This is the second time that the operation of Part II of the Temporary Measures Act has been extended. The first extension was made pursuant to the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) (Extension of Operation) Order 2020.

2 The second extension of Part II of the Temporary Measures Act was made pursuant to the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) (Extension of Operation) Order 2021 which was gazetted on 17 March 2021.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.