Covid 19: Part II of the Temporary Measures Act 2020 Extended
31 December 2020
The Minister in the Prime Minister’s Department (Parliament and Laws) issued the following statutory orders on 29 December 2020:
The Extension Order
The Extension Order extends 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 December 2020, to 31 March 2021.
In essence, Part II of the Temporary Measures Act provides, inter alia, that:
- 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
- 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.
For our previous Alerts on Part II of the Temporary Measures Act, please click
here and
here.
The Amendment Order
The Amendment Order adds Items 8 and 9 to the Schedule to Part II of the Temporary Measures Act which introduce the following as new categories of scheduled contracts with effect from 1 January 2021:
8. Hire-purchase agreement under the Hire-Purchase Act 1967 or leasing contract entered into by micro enterprises, B40 or M40 class of persons
1 as specified in the Inland Revenue Board of Malaysia database, as the case may be, for the following vehicles:
- motor vehicles as classified under section 5 of the Road Transport Act 19872 (“RTA”);
- goods or public service vehicle:
- in the case of Peninsular Malaysia, as provided under the Land Public Transport Act 20103 (“LPTA”); or
- in the case of Sabah, Sarawak and the Federal Territory of Labuan, as provided under the Commercial Vehicles Licensing Board Act 19674 (“CVLBA”); or
- tourism vehicle:
- in the case of Peninsular Malaysia, as provided under the LPTA5; or
- in the case of Sabah, Sarawak and the Federal Territory of Labuan, as provided under the Tourism Vehicles Licensing Act 19996 (“TVLA”).
9. Credit sales contract under the Consumer Protection Act 1999.
Comments
As the adverse economic impact brought about by the outbreak of the Covid-19 pandemic is still being felt in Malaysia, it is not unexpected that Government is extending the operation of Part II of the Temporary Measures Act. It is to be noted that the new categories of scheduled contracts which are being introduced under the Amendment Order are targeted primarily at assisting micro enterprises, and the lower and middle income segments of Malaysian society.
1 The terms “B40”and “M40” are commonly used to describe the lowest 40% and middle 40% income segments respectively of Malaysian society.
2 Section 5 of the RTA sets out 11 classes of motor vehicles, namely invalid carriages, motor cycles, tractors heavy, tractors light, motor cars heavy, motor cars, mobile machinery heavy, mobile machinery light, pedestrian controlled vehicles, trolley vehicles and trailers. Refer to section 5 of the RTA for a further description of each of these classes of motor vehicles.
3 Section 2 of the LPTA defines (a) “goods vehicle” as (i) any motor vehicle or a trailer constructed or adapted for use for carriage of goods; or (ii) any motor vehicle or trailer not so constructed or adapted when used for the carriage of goods solely or in addition to passengers; and (b) “public service vehicle” as a motor vehicle categorised under any of the classes described in the First Schedule of the LPTA, namely stage buses, chartered buses, express buses, mini buses, employees buses, feeder buses, school buses, airport buses, hire cars, hire and drive cars, taxi cabs, airport taxi cabs, limousine tax cabs and e-hailing vehicle. Refer to the First Schedule of the LPTA for a further description of each of these classes of public service vehicles.
4 Section 2 of the CVLBA defines (a) “goods vehicle” as (i) any motor vehicle constructed or adapted for use for carriage of goods; or (ii) any motor vehicle not so constructed or adapted when used for the carriage of goods solely, or in addition to passengers, but in each case, does not include a private motor car drawing a trailer for purposes unconnected with trade or business; and (b) “public service vehicle” as a motor vehicle used for carrying passengers for hire or reward or for any other valuable consideration.
5 Section 2 of the LPTA defines “tourism vehicle” as a motor vehicle categorised under any of the classes described in the Second Schedule of the LPTA, namely excursion buses and hire and drive cars for tourists. Refer to the Second Schedule of the LPTA for a further description of each of these classes of tourism vehicles.
6 Section 2 of the TVLA defines “tourism vehicle” as an excursion bus or a hire and drive car, each as further defined in Section 2 of the TVLA.