SUMMARY OF THE TEMPORARY MEASURES FOR

REDUCING THE IMPACT OF CORONAVIRUS

DISEASE 2019 (COVID-19) ACT 2020 (ACT 829)

(i) The Act shall continue to remain in operation for a period of 2 years from the date of
publication which was on 23 October 2020.
(ii) The PM may extend the operation of the Act, and extension can be done more than once,
and should be laid before the Dewan Rakyat – Section 1.
(iii) In an event of conflict with other laws, the Act shall prevail – Section 3.
(iv) The modifications to other laws are as follows.

1. If a party is unable to perform their contractual obligation due to Covid-19 measures

under the Prevention and Control of Infectious Diseases Act, 1988, it does not give rise to
the other party to exercise his right under the contract – Section 7.

2. However, for the period between 18 March 2020 to 23 October 2020:

 If a contract is terminated, it is deemed validly terminated;
 I deposit or performance bond forfeited, it is deemed validly forfeited;
 If damages received, it is deemed validly received;
 If legal proceeding, arbitration or mediation commenced, it is deemed validly
commenced;
 If Judgment or Award granted, it is deemed validly granted; and
 If execution carried out, deemed validly carried out.
[Section 10]

3. Dispute relating to contractual obligation may be settled by way of mediation, which

process shall be determined by the Minister. Settlement agreement shall bind the parties
– Section 9.

** Additional Source : The Star, 22nd October 2020

“At the same time, contractual obligation disputes can also be settled in an amicable manner
without involving legal processes in court, but instead can be done through the Covid-19

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 Mediation Centre set up under the Prime Minister's Department," said Takiyuddin in a
statement on Thursday (Oct 22)
He said this mediation service would open to everyone with disputes involving less than
RM300,000 and below.
He added that the government would also bear the mediation service cost for those in the
B40 and M40 categories, as well as those in the small and micro enterprise group.”

4. If the limitation period under the Limitation Act, 1953 or under the Public Authorities
Protection Act, 1948 expires between 18 March 2020 and 31 August 2020, it shall be
extended to 31 December 2020 – Sections 12 and 18 respectively.

5. The monetary threshold of indebtedness for purposes of presenting a Bankruptcy Petition

is RM100,000.00 – Section 20.

6. The modification period is from 23 October 2020 to 31 August 2021 and may be extended
by the Minister – Section 19.

7. However, proceeding, action or matter which are pending before the publication of the
Act (before 23 October 2020) shall be dealt with as though no modification done under
the Insolvency Act, 1967.

8. The owner cannot re-possess goods under Section 16 of the Hire Purchase Act, 1967 in
the event of default of payments during the period 1 April 2020 to 30 September2020 –
Section 23.

9. However, owner who has exercised their power of taking possession of goods before the
publication of the Act (before 23 October 2020) is deemed to be validly exercised –
Section 24.

10. Section 24V of Consumer Protection Act, 1999 is modified that in the event of default of
payment of two consecutive instalments, the credit facility shall issue notice to the
purchaser on the settlement of the overdue instalments – Section 26.

11. However, even if the purchaser failed to elect any of the settlement method upon issuance
of the notice, the credit facility provider shall not commence any legal proceedings.

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12. The modified Section 24V shall only apply if the agreement was entered before 18 March
2020 and the purchaser has no overdue instalments before 18 March 2020.

13. The modification came into operation on 18 March 2020 and remains in operation until
31 December 2020.

14. The modification shall not affect any proceedings commenced or judgment or award
obtained from 18 March 2020 until the publication of the Act (23 October 2020) – Section
27.

15. The limitation period under Section 99 of the Consumer Protection Act, 1999 which
expired between 18 March 2020 to 15 June 2020 shall be extended to 31 December 2020
– Section 28.

16. A warrant of distress under Section 5(1) of the Distress Act shall not include the arrears
of rent for the period of 18 March 2020 to 31 August 2020 – Section 30.

17. Execution of warrant of distress which was issued before publication of the Act (before
23 October 2020) shall be dealt with as though the Distress Act has not been modified –
Section 31.

18. Developer shall not impose late payment charges in respect of unpaid instalments, due to
Covid-19 measures, on the purchaser between 18 March 2020 to 31 August 2020.
Purchaser may apply to Minister for extension, and Minister may extend by written
direction to developer in which the developer shall not impose any late payment charges
for unpaid instalments up to 31 December 2020 – Section 34.

19. For the calculation of time for delivery of vacant possession and calculation of liquidated
damages for late delivery, the period from 18 March 2020 to 31 August 2020 should not
be included. The developer may apply for extension from the Minister. If purchaser cannot
take possession between 18 March 2020 to 31 August 2020, the purchaser shall not be
deemed to have taken possession – Section 35.

20. For the calculation of the defect liability period after delivery of vacant possession, the
period from 18 March 2020 to 31 August 2020 should not be included. The purchaser may
apply for extension from the Minister – Section 36.

21. However, the modifications shall not affect any legal proceedings commenced, judgments
or award obtained to recover late payment charges from 18 March 2020 to the date of
publication of this Act (23 October 2020). Any late payment charges paid before the date
of publication of this Act (23 October 2020) shall be deemed validly paid – Section 37.

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22. If limitation period for homebuyer had expired between 18 March 2020 and 9 June 2020,
the homebuyer is entitled to file the claim from 4 May 2020 to 31 December 2020 –
Section 38.

23. The period from 18 March 2020 to 9 June 2020 shall be excluded from the calculation of
the period for:
 According recognition, or notifying the trade union in relation to not according
recognition under Section 9(3) of IRA;
 Writing a report to the Director General of Industrial Relations under Section 9(4) of
IRA; and
 Filing a representation under Section 20(1A) of IRA.
[Section 40]

24. The period from 18 March 2020 to 9 June 2020 shall not be included in the calculation for
application to renew license under Section 11(1) of PEAA – Section 42.

25. The modifications to LPTA shall come into operation on 1 August 2020 to 31 December
2020. Minister may extend the period and extension shall not be made before expiry of
the period, and extension may be made more than once – Section 43.

26. Section 21 of LPTA is modified where the licensed operator of public service vehicle or
tourism vehicle may be authorised to use the public service vehicle or tourism vehicle for
purposes of public service vehicle or tourism vehicle or goods vehicle of any other class
for a period not exceeding 12 months – Section 44.

27. Section 56 of LPTA is modified where the licensed operator of a particular goods vehicle
may be authorised to use the goods vehicle for purposes of public service vehicle or
tourism vehicle or goods vehicle of any other class for a period not exceeding 12 months
– Section 45.

28. The modifications to CVLBA come into operation from 1 August 2020 to 31 December
2020. Minister may extend and extension shall not be made before expiry of period, and
extension may be made more than once – Section 46.

29. Section 23 of CVLBA is modified where any holder of public service vehicle license of a
particular class may be authorised to use the public service vehicle for purposes of public
service vehicle or goods vehicle of any other class for a period not exceeding 12 months –
Section 47.

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30. Section 24 of CVLBA is modified where any holder of carrier licence “C” vehicle or “A”
vehicle may be authorised to use the vehicle for purposes of public service vehicle or
goods vehicle of any other class for a period not exceeding 12 months – Section 48.

31. New Section 16A of CJA is inserted which confers the Chief Justice the power to issue any
direction to the business of the Court, if necessary, in the interest of dispensation of
justice, public safety, public security, public health or propriety or any sufficient reason to
do – Section 50.

32. A new Section 17(3A) of CJA provides that the Chief Justice may order for alternative
arrangement of meetings and Chief Justice may modify any provision of the rules of court
or suspend application of such rules of court – Section 51.

33. A new Section 17(8) of CJA provides that the Chief Justice may, if the circumstances
warrant and if it is necessary modify any provision of the rules of court or suspend the
application of such rules of court as is necessary for doing complete justice in any cause
or matter pending before the Courts and to ensure that the administration of justice is
carried out – Section 51.

34. Section 17A of CJA is modified where it is not necessary for Council of Judges to hold at
least one meeting in each year – Section 52.

35. The new Section 3A of SCRA confers the Chief Justice the power to issue any direction to
the business of the Court, if necessary, in the interest of dispensation of justice, public
safety, public security, public health or propriety or any sufficient reason to do so –
Section 54.

36. A new Section 17(8) of SCRA provides that the Chief Justice may, if the circumstances
warrant and if it is necessary modify any provision of the rules of court or suspend the
application of such rules of court as is necessary for doing complete justice in any cause
or matter pending before the Courts and to ensure that the administration of justice is
carried out – Section 56.

37. The Minister may extend the time for any authority to perform any statutory duty or
obligation which is not possible to be performed within the time stated in such Act due to
the Covid-19 measures. Such order may be made to operate retrospectively but not to a
date before 18 March 2020 – Section 58.

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38. No authority is liable for any damages in respect of failure to perform any duty or
obligation within the time stated in such Act – Section 58.

39. The Minister may provide alternative arrangement for any such statutory meeting which
is not possible to be held between 18 March 2020 to 9 June 2020, due to the measures
taken for Covid-19 – Section 59.

DISPUTE RESOLUTION TEAM

No.14-2nd Floor, Wisma Shukor Baljit, Jalan 13/48A,

Sentul Raya Boulevard, Off Jalan Sentul, 51000 KL, Malaysia.
+603 4045 6366 / +603 4045 6355
general@shukorbaljit.com

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