International Law Office - Legal Newsletters, Law Firm Directory and Legal News

Corporate Finance/M&A

Malaysia

Overview
Including: Regulatory framework; Application of Takeover Code; Types of offer; Persons acting in concert; Takeover process; Terms; Consideration; Timing; Announcements; Disclosure of dealings; Post-bid matters; Other noteworthy matters.

Various regulatory measures have been introduced in order to assist corporate restructuring, so that Malaysian companies will be well protected from future economic downturns.

New guidelines issued by the Securities Commission aim to facilitate the preparation of takeover offers and mergers documentation and expedite the process of submission and approval.

A recent announcement has confirmed that privatization will continue to play a major role in accelerating and enhancing the role of the private sector in the economic development of Malaysia.

The government has adopted a new approach to privatization projects, which has the effect of allocating substantially greater financial risks to the private sector. As a result, the viability of certain projects will depend on how effectively risks can be allocated among participants.

E-commerce

Malaysia

Overview
Including: Enforceability; Offer and Acceptance; Revocation; Evidence of a Contract; Digital Signatures; Borderless Transactions; Payment

The number of internet users in Malaysia is expected to grow by 25% to over 3 million, accounting for more than 40% of the Malaysian population by 2004. In light of this fact, the minister of energy, communications and multimedia has outlined key challenges for the year ahead.

The government has announced that the Electronic Transactions Bill and the Electronic Government Activities Bill will be tabled before Parliament next year. Both bills are intended to encourage domestic internet users to conduct business online and allay concerns that existing laws do not address unique legal issues arising from electronic transactions.

It is apparent that a uniform legislation on privacy regulating the collection, use, possession, processing and protection of information is necessary in order to address concerns that have arisen from the emergence of the digital economy.

ePerolehan is a system that provides online links between government agencies and their suppliers. The long-term objective of ePerolehan is to replicate its implementation in other countries.

While the Internet cannot be censored as such, the individuals responsible for placing illegal content on the Internet remain liable. The Malaysian internet industry is taking no chances. A forum has been established with the aim of drafting a Content Code, which is one of the voluntary industry codes recognized by the Communications and Multimedia Act.

The Central Bank has taken an active role in helping to minimize, if not eradicate, cyberlaundering, fraud and racketeering in Malaysia by issuing a regulatory framework entitled 'Minimum Guidelines on the Provision of Internet Banking Services'.

More updates >

Employment & Labour

Malaysia

The Federal Court has ruled that an employee faced with an order that he considers unlawful cannot simply refuse to obey the order with impunity. He must plead constructive dismissal or obey under protest and then take steps to challenge the order.

Hopefully, the cases of Nada Pakar and Koperasi Serbaguna signal a return to acceptable levels of awards which will compensate dismissed employees without imposing undue financial burdens on employers.

A recent decision of the Federal Court spells uncertainty and less flexibility for acquirers of businesses when it comes to reorganizing and integrating employees into a merged business.

In a recent case a company was in dire financial straits. It failed to pay annual increments and bonuses as stipulated in a collective agreement with employees. The Industrial Court, consistent with its previous decisions, refused to vary the agreement. However the High Court found that the Industrial Court had reached a perverse decision.

Recent legislation has created a statutory body that is responsible for the promotion of training and development of employees in the manufacturing and service sectors.

It is vital that companies ensure that their employees are informed of any changes taking place in the work environment, particularly if they will have an effect on employee service contracts. Recent case law illustrates the point that employees cannot be assumed to have acknowledged new policies, even if they are aware of the policies and these are adopted in a staff handbook.

More updates >

Information Technology

Malaysia

Overview
Including: New Legislation; Proposed Legislation; Current Law; The Future.

In continuing its efforts to strike a balance between protecting the interests of domestic manufacturers and providing incentives to foreign entities to invest in the local manufacturing industry, the government hopes to achieve its aim of increasing Malaysia's competitiveness and positioning it at the forefront of the IT industry.

Rapid technological development and the enactment of cyber-legislation have greatly impacted the information and communications sector. Now the government is taking action to enhance and develop the postal services industry for the internet age.

In its efforts to promote the development of Malaysia into an IT hub, the government has granted a general exemption from the requirement of Foreign Investment Committee approval for companies that are eligible for Multimedia Super Corridor status.

Including: Introduction; The Layout Designs of Integrated Circuits Act; The Optical Discs Act; The Personal Data Protection Bill; Conclusion

Telecommunications

Malaysia

Overview
Including: Industry Consolidation; Applications Service Market; Resources.

The Communications and Multimedia Commission has commenced an analysis of telecommunications legislation. It has indicated that strategic issues will be presented to the industry for consultation before the consultation is finalized. The degree of consultation with the industry is in contrast to the previous regulatory regime.

Since the enactment of the Communications and Multimedia Act 1998, the telecommunications regulator has implemented initiatives to optimize the use of existing infrastructure by (i) requiring mobile telephone operators to provide a domestic roaming service between networks, and (ii) introducing a new universal service scheme.

The domestic communications industry is still in its infancy and, in time, market trends should identify quality of service (QOS) indicators and shape QOS standards. For the time being, however, the new minimalist mandatory standards which the Malaysian Communications and Multimedia Commission has introduced seem to suit industry needs very well.

It is hoped that a new consumer code will promote a high level of consumer confidence in the services delivered by the communications industry, protect consumer information and create an inexpensive dispute resolution process, in addition to providing compensation for consumers where appropriate.

The award of the third generation (3G) spectrum is to be announced shortly. New players in the form of mobile virtual network operators are expected to emerge and utilize other licensees' infrastructure to provide services.

Highlights of the latest developments from the Malaysian Communications and Multimedia Commission are the marketing plan for the assignment of spectrum for 3G networks and tariff rebalancing for fixed-line telephony.

More updates >