The Establishment of Malaysia Border Control and Protection Agency
Parliament of Malaysia recently passed the Malaysia Border Control and Protection Agency Act 2024. The Act established the Malaysia Border
Control and Protection Agency. The Agency has its jurisdiction over certain entry points, whether by land, sea or air, as specified in Schedule 1 of the Act. The Agency is authorised to exercise certain powers under certain written laws as specified in Schedule 2. While the Agency is empowered to carry out its functions under the written laws at the prescribed areas, it does have the right to exercise its powers outside the prescribed areas where its officers reasonably believe that such action is necessary to prevent the commission of the offence or to complete the investigation of that offence.
If you are affected by the exercise of any government power, and would like to seek judicial review of such exercise of power, please do not hesitate to CONTACT ETCoLaw.
6 August 2024
airline aviation space aerospace passenger cargo aircraft engines mro avionics travel satellite launch airport spaceport boeing airbus teleport
Amendments to the Arbitration Act 2005
Parliament of Malaysia passed the Arbitration (Amendment) Act 2024 recently.
A few significant points are noteworthy.
Firstly, the parties are free to agree on the law applicable to the arbitration agreement. Where the parties fail to agree on such a law, the law applicable to the arbitration agreement shall be the law of the seat of arbitration. Such an express agreement is required because an agreement on the law applicable to an agreement, which contains an arbitration agreement, does not automatically make that law applicable to the arbitration agreement.
Secondly, unless otherwise agreed by the parties, where any arbitrator including the presiding arbitrator is replaced, hearings previously held may be repeated at the discretion of the arbitral tribunal. In other words, more work for Counsel.
Thirdly, An award made in respect of an arbitration where the seat of arbitration is in Malaysia or an award from a foreign State shall be recognized as binding and, upon an application in writing to the High Court, shall be enforced, subject to section 39.
Lastly, the Amending Act in a new Chapter 2 provides for Third Party Funding for arbitration. Chapter 2, however, applies only to third party funding agreement made after the passing of this Chapter. Chapter 2 disapplies the rule of common law against maintenance and champerty, and effectively legalised third party funding in arbitration. Notwithstanding the disapplication of the rule of common law against maintenance and champerty, any (presumably other) rule of law as to the cases in which
a contract is to be treated as contrary to public policy or otherwise illegal, is not affected. Chapter 2 grants the Minister concerned the power to make a Code of Practice in relation to such funding. Other matters in Chapter 2 include the effect of non-compliance with the Code of Practice, disclosure of information for the purpose of seeking or securing third party funding, disclosure of third party funding agreement to the other party to the arbitration.
If you are looking for legal advice or representation at arbitration, please do not hesitate to CONTACT ETCoLaw.
6 August 2024
airline aviation space aerospace passenger cargo aircraft engines mro avionics travel satellite launch airport spaceport boeing airbus teleport
AirAsiaX’s Has Suffered a Setback in Its Attempt to Uplift the PN17 Status
Bursa Malaysia, the stock exchange, has rejected AirAsiaX’s (“AAX”) attempt to uplift its PN17 status and AAX’s attempt to obtain relief from Bursa from having to submit a regularization plan. The rejection came around notwithstanding the apparent market improvement in the passenger airline industry. The rejection is also, in one way, seen as the authority’s closer watch on the financial health of airlines after the sudden cessation of operations of MYAirline, an unlisted carrier, recently.
The setback to AAX is also reportedly to have some ramifications to Capital A Berhad, which apparently has the common substantial shareholders as AAX and which operates the sister airline, namely, AirAsia. Capital A is apparently in PN17 as well.
ETCoLaw acted for INMARSAT, an international satellite operator, in the debt restructuring scheme of AAX. For more information, please visit Notable Consultations.
For more information about ETCoLaw’s Aviation & Space Law Practice and Insolvency & Restructuring Practice, please click on the respective words.
If you need legal advice or want to know more about ETCoLaw’s law consultancy, please CONTACT ETCoLaw.
19 October 2023
airline aviation space aerospace passenger cargo aircraft engines mro avionics travel satellite launch airport spaceport boeing airbus teleport
MYAirline Suspends Operations with Immediate Effect until Further Notice
MyAirline, a budget airline launched in December 2022 in the aftermath of border reopening after the COVID-19 pandemic, has announced cessation of operations with immediate effect until further notice.
The business cessation news sort of confirmed the earlier market intelligence that the airline was facing financial troubles and had delayed salary payment as well as payment to its suppliers. The news also sort of came as a surprise as there had been rumours just a few days ago that the airline was about to get a new shareholder which would provide the much-needed financial support. It remains to be seen if the so-called White Knight will come in to revitalise MYAirline.
MYAirline joined the highly-competitive budget air transport market which had seen at least 3 existing players. MYAirline was launched at a time when nearly all the other players had been severely hit by the border closure as a result of the pandemic which saw the latter’s aircraft grounded for an indefinite period.
Other Malaysia-based airlines including Malaysia Airlines, Batik Air and AirAsia, have stepped in to offer replacement flights to the passengers who booked their flights with MYAirline.
MAVCOM, the industry economic regulator, has in the meantime called for MyAirline to refund the fares to its passengers.
For more information about ETCoLaw’s Aviation Law Practice, please visit Aviation & Space Law Practice.
If you are one of the MYAirline creditors and are likely to be affected by the prospective insolvency or restructuring of MYAirline, please do not hesitate to Contact ETCoLaw.
12 October 2023
airline aviation space aerospace passenger cargo aircraft engines mro avionics travel satellite launch airport spaceport boeing airbus teleport
US Anti-Dumping Petition against Malaysian Boltless Steel Racks
Edsal Manufacturing Co., Inc. (“Petitioner”), apparently the largest US producer of boltless steel racks, filed an anti-dumping petition with the US Department of Commerce and International Trade Commission against certain boltless steel rack products allegedly dumped from certain countries like Malaysia, Thailand and Vietnam.
The Petitioner is asking for the US Department of Commerce to impose anti-dumping duties ranging from 41.29% to 232.94% on imports of boltless steel shelving from Malaysia, among others.
If you are a manufacturer or exporter to the US of boltless steel racks, and are or could be affected by the said anti-dumping petition, you are urged to CONTACT ETCoLaw.
For more info about ETCoLaw’s Trade Remedies Practice, please go to the firm’s Litigation, Arbitration & Administrative Investigation.
27 April 2023
airline aviation space aerospace passenger cargo aircraft engines mro avionics travel satellite launch airport spaceport boeing airbus teleport
New Minimum Wages
The Minimum Wages Order 2022 (“MWO 2022“) has been gazetted. The generalized and summarized position is as follows.
A general line is drawn in the MWO 2022 between employers who employ 5 or more employees or employers who carry out a professional activity (regardless of the number of employees), on the one hand, and employers who employ fewer than 5 employees on the other hand.
For employers with 5 or more employees or who carry out a professional activity, the minimum monthly wages beginning on 1 May 2022 shall be RM1,500 or minimum hourly wages of RM7.21.
For employers who employ fewer than 5 employees, the minimum monthly and hourly wages for those employed in City Council or Municipal Council areas shall be RM1,200 and RM5.77 respectively, and RM1,100 or RM5.29 respectively for those employed in other places, which rates shall be applicable for the period 1 May 2022 to 31 December 2022. For the period from 1 January 2023 onwards, the minimum wages shall be the same as the rates applicable to employers with 5 or more employees.
The MWO 2022 does not apply to domestic servants.
29 April 2022
aviation airlines space competition corporate commercial antitrust
aviation airlines space competition corporate commercial antitrust
AirAsia Berhad is deemed PN17 Company
According to AirAsia Berhad’s (“AAB“) announcement filed with the Bursa Malaysia (i.e. the Stock Exchange), AAB apparently failed in its appeals to have the Relief Period extended beyond 7 January 2022. The Relief Period appears to be related to the measures introduced by the Bursa in response to the market situations brought about by the COVID-19 pandemic.
While AAB has not stated that it is now a PN17 company (n 1), it appears to be deemed a PN17 company (n 2).
Please do not hesitate to CONTACT ETCoLaw if the new development is expected to affect your company’s business dealings.
Notes:
n 1 https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3226190
n 2 https://www.theedgemarkets.com/article/airasia-classified-pn17-company-after-bursa-dismisses-its-appeal
14 January 2022
airline aviation space aerospace passenger cargo aircraft engines mro avionics travel satellite launch airport spaceport boeing airbus teleport
The Seat of Arbitration Determines the Exclusive Supervisory Jurisdiction
The Federal Court (the apex court) recently held in an appeal concerning some legal proceedings that had arisen from a domestic arbitration that the seat of an arbitration is a distinct legal concept from the physical venue of the arbitration. It is the seat of the arbitration that determines the lex arbitrii and curial law of the arbitration.
Subsequent to an arbitration process, if any of the parties wishes to, inter alia, challenge the award or register the award, the High Court to go to for this purpose is the High Court that possesses the exclusive supervisory jurisdiction. While there are two High Courts of co-ordinate jurisdiction in Malaysia, it is the seat of the arbitration that determines which of these two High Courts that possesses the exclusive supervisory jurisdiction.
In obiter, the Federal Court also seems to suggest that when drafting an arbitration clause or arbitration agreement, the seat should be stated as a city in a country.
If you have any queries regarding the Federal Court decision, or would like to know how to improve the arbitration clause or agreement that you have been using, or have any potential dispute that is subject to arbitration, you may wish to CONTACT ETCoLaw.
16 September 2021
competition antitrust aviation aircraft leasing financing cape town
Court of Appeal allows Appeals by Malaysia Airlines and Air Asia
The Court of Appeal allowed the appeals by Malaysia Airlines and Air Asia…to read more.
27 April 2021
airline aviation space aerospace passenger cargo aircraft engines mro avionics travel satellite launch airport spaceport boeing airbus teleport
Aircraft Leasing, Scheme of Arrangement, and the Cape Town Convention
30 March 2021
competition antitrust aviation aircraft leasing financing cape town
COVID-19, Airline Debt Restructuring, and the Law on Scheme of Arrangement
22 March 2021
competition antitrust aviation aircraft leasing financing cape town
MyCC’s Final Decision against PIAM and Its 22 Members
1 October 2020
competition antitrust aviation corporate commercial property tech
Anti-Dumping Investigation – Imports of Polyethylene Terephthalate
29 July 2020
competition antitrust aviation corporate commercial property tech competition antitrust aviation corporate commercial property tech technology IP patent trademark data litigation arbitration trade employment tax customs investigation law insolvency practice
competition antitrust aviation corporate commercial property tech technology IP patent trademark data litigation arbitration trade employment tax customs investigation law insolvency practice
competition antitrust aviation corporate commercial property tech technology IP patent trademark data litigation arbitration trade employment tax customs investigation law insolvency practice
competition antitrust aviation corporate commercial property tech technology IP patent trademark data litigation arbitration trade employment tax customs investigation law insolvency practice
competition antitrust aviation corporate commercial property tech technology IP patent trademark data litigation arbitration trade employment tax customs investigation law insolvency practice
competition antitrust aviation corporate commercial property tech technology IP patent trademark data litigation arbitration trade employment tax customs investigation law insolvency practice