Category Archives: Article

CIPAA: Only Qualified Advocates for Adjudications in East Malaysia?

It is a well-known fact in Malaysia that the governing law of legal profession for Peninsular and East Malaysia differ from one another. Should one wish to commence a court action in the East Malaysia, an advocate qualified under the Sabah or Sarawak Advocates Ordinance would have to be appointed. However, what about adjudication proceedings under the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) which allows parties to “be represented by any representative appointed by the party”. The High Court case of Tekun Cemerlang Sdn Bhd v Vinci Construction Grands Projets Sdn Bhd had recently shed light on this matter.

Section 30 of CIPAA – A Road Less Travelled, Now Widened

“The Construction Industry Payment and Adjudication Act 2012 (CIPAA) has been legislated to facilitate cash flow in the construction industry.” – a sentiment readily resonated nationally amongst judges and legal practitioners in the construction industry alike, amongst others.

No escape from paying minimum wage

It is a standard practice in the hotel industry to collect a 10% service charge from the customers in place of a tipping system, which will in turn be distributed to the eligible employees. This seemingly explains why the hotel industry employees were paid low basic salary, because they would be compensated with the income earned from service charge.

A Contractor’s Claims in Adjudication against the Sub-Contractor

When a contractor takes over the sub-contractor’s works, can the contractor make a claim in adjudication against the sub-contractor? Scenarios as such are not uncommon as contractors may be obliged take over the sub-contractor’s works when the sub-contractor can no longer proceed with its work, refuses to carry out rectification works, or worst, abandons the project altogether.

Contractors who find themselves in such circumstances and wish to make a claim against the sub-contractors by way of an adjudication under the Construction Industry Payment and Adjudication Act 2012 (“CIPAA”) should be wary of the recent High Court case, Hiform (M) Sdn Bhd v Pembinaan Bukit Timah Sdn Bhd and another case.

Reminder by SC – What do you know about prospectus under CMSA?

Following a statement released by the Securities Commission Malaysia (SC) on 26 January 2021, which reminded the unlisted public companies to comply with requirements in SC’s prospectus guidelines and securities laws, we believe that the following information will be useful to the players.    What is a prospectus A prospectus[1] is a mechanism that invites…

Has COVID-19 ended Inter-state Case Transfer?

Technology reduces needs for transfer, encourages remote trials In Muhammad Hafidz bin Mohd Dusuki v Hassan bin Zulkifli[1], the defendant in a copyright infringement claim applied to transfer the case from Kuala Lumpur to Kota Bharu, on the following grounds: (1) alleged infringement in Tumpat, Kelantan; (2) defendant’s place of business and residence are both…

Do you need a licence from the SC to provide investment advice?

The Securities Commission Malaysia (SC) has recently issued a Guidance Note on Provision of Investment Advice[1]. Given the increasing number of self-proclaimed investment advisors, the Guidance Note clarifies situations where a person needs to be licensed by the SC to provide investment advice.    Licence from the SC is required A person needs to be…