Economic Stimulus Packages, Contractual Obligations and Liabilities and Legal Implications in Malaysia
This update note is for your information only and does not constitute legal advice. The contents of this note should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer.
1. The impact of COVID-19 on the corporate industry in Malaysia Due to the recent outbreak of COVID-19, the Government of Malaysia has declared a Movement Control Order (“MCO”) for the period from 18 March 2020 to 31 March 2020, which has since been extended twice to 12 May 2020.
Pursuant to the MCO, save and except for “essential services”, all business premises in Malaysia must be closed from 18 March 2020 until 12 May 2020 – for practical purposes, this does not necessarily entail a shutdown or cessation of operations, merely that the premises must be closed. Most companies and businesses have opted to have a “work from home” policy, where possible. Such an approach allows them to continue providing their services, and in some cases, products too. Essential services are defined to include, amongst others, banking services, transportation (air/land/sea), telecommunication services, electricity and water services, food supply and preparation services, and e-commerce.
Companies that wished to continue their operations needed MITI’s approval to do so, and even then such approvals to operate were subject to additional conditions, such as reducing manpower to minimal levels, recording the results of daily temperature checks of each employee, ensuring the business premises are sanitised, and ensuring hand sanitiser and face masks are available for all workers – all of which are aimed at preventing a further spread of COVID-19.
Article Written by :
DATIN SHELINA RAZALI WAHI