[EMPLOYMENT] Will Silence Undermine a Claim of Constructive Dismissal?
The Industrial Court reaffirmed that in constructive dismissal (“CD”) cases, it is imperative for employees to record grievances or objections in writing. In this case, the CD claim was dismissed primarily on the grounds of the employee’s silence and lack of objection prior to walking out of her employment, as well as the tone of the resignation letter sent by the employee, which was not consistent with an employee claiming CD.
This alert discusses the key takeaways from the decision.
If you have any queries, please contact Partner Amardeep Singh Toor (ast@lh-ag.com) or Associate Wong Lien Taa (wlt@lh-ag.com).
[EMPLOYMENT] Austerity in Action: When Redundancy Is Justified
The Industrial Court reaffirmed that redundancy must be genuine and substantiated by objective business needs. In finding the dismissal of a Finance Executive to be with just cause or excuse, the Industrial Court considered that extensive cost-saving measures were implemented by the Company due to a downturn in business following the COVID-19 pandemic before resorting to retrenchment.
The Industrial Court was satisfied that the redundancy was not a pretextual dismissal and emphasised that the pandemic must not be misused to justify termination without genuine financial necessity.
This alert discusses the key takeaways from the decision and highlights important considerations for employers planning workforce restructuring in times of economic uncertainty.
If you have any queries, please contact Partner Amardeep Singh Toor (ast@lh-ag.com) or Associate Wong Lien Taa (wlt@lh-ag.com).
[ESG] Feedback Welcome on the New Sustainability Assurance Framework
Malaysia Moves to Strengthen Sustainability Assurance
The ACSR has proposed measures to strengthen oversight of sustainability assurance, align with global standards, and ensure competence among assurance providers. Stakeholders are encouraged to provide feedback and help shape the future of sustainability assurance in Malaysia.
If you have any queries, please contact ESG & Sustainability Practice Partner, Joyce Ong Kar Yee (oky@lh-ag.com).
[TAX, CUSTOMS & TRADE] Provisional Anti-Dumping Duties Imposed on Galvanised Steel Imports from China, Korea, and Vietnam Following Affirmative Preliminary Determination by the Ministry of Investment, Trade and Industry
On 4 July 2025, the Ministry of Investment, Trade and Industry (“MITI”) issued its Affirmative Preliminary Determination in the ongoing anti-dumping investigation concerning imports of galvanised iron and steel coils/sheets originating or exported from the People’s Republic of China, the Republic of Korea, and the Socialist Republic of Viet Nam. The Affirmative Preliminary Determination issued by MITI follows a petition filed by CSC Steel Sdn. Bhd. (“CSC Steel”), representing the domestic industry, pursuant to the Countervailing and Anti-Dumping Duties Act 1993 and its accompanying Regulations.
MITI found that the subject merchandise was being exported into Malaysia at dumped prices and that this has caused material injury to the domestic industry. As a result, provisional anti-dumping duties ranging from 3.86% to 57.90% have been imposed on exporters from the three countries, with immediate effect.
CSC Steel was assisted by Jason Tan Jia Xin and Nathaniel Jagan of Lee Hishammuddin Allen & Gledhill’s Tax, Customs & Trade Practice.
For further information on Malaysia’s trade remedy laws or to discuss how we may assist in anti-dumping or countervailing duty proceedings, please contact Partner Jason Tan Jia Xin (tjx@lh-ag.com) or Associate Nathaniel Jagan (nje@lh-ag.com).
[TAX, CUSTOMS & TRADE] Adjustments to SST Expansion Ahead of 1 July 2025
Following the media announcement on 9 June 2025, the Ministry of Finance has introduced several important refinements to the expanded Sales Tax and Service Tax (SST) regime, in response to feedback from the public, businesses, and Members of Parliament.
Taking effect tomorrow (1 July 2025), these targeted changes aim to balance fiscal objectives with the practical challenges faced by consumers and small service providers. This update highlights the adjustments to the initial SST expansion, including changes to sales tax exemptions, service tax registration thresholds, and taxable service.
For any inquiries, please contact Partner Ivy Ling Yieng Ping (il@lh-ag.com).
[DISPUTE RESOLUTION] Can’t Hide Behind a Bribe
Bribery may be shady, but it’s not a get-out-of-contract-free card.
In this alert, we explore the High Court’s decision that struck out a claim to impeach a judgment obtained by our client, a financial institution. The Court, for the first time, adopted foreign case law on how bribery affects enforceability – confirming that contracts procured through bribery remain valid unless avoided by the innocent party.
For any inquiries, please contact Partners Kumar Kanagasingam (kk@lh-ag.com), Chia Oh Sheng (cos@lh-ag.com) and Wong Han Wey (whw@lh-ag.com) or Associate Michelle Louis (mil@lh-ag.com).
[TAX, CUSTOMS & TRADE] Reinvestment Allowance & Investment Tax Allowance – High Court Grounds Offer Certainty on RA Claims
Further to our alert dated 20.2.2025, the High Court has recently issued its written grounds of judgment in Panasonic AVC Networks Johor (M) Sdn Bhd v KPHDN, confirming that reinvestment allowance under Schedule 7A of the Income Tax Act 1967 (“Schedule 7A”) and investment tax allowance under the Promotion of Investments Act 1986 may not be mutually exclusive. This judgment provides greater clarity on the interpretation of paragraph 7 of Schedule 7A and offers key insights into the High Court’s approach in interpreting the legislative amendment to that provision.
In this alert, we provide a summary of the facts and the key takeaways from the High Court’s written grounds of judgment.
The taxpayer was successfully represented by Dato’ Nitin Nadkarni and Chris Toh Pei Roo from Lee Hishammuddin Allen & Gledhill’s Tax, Customs & Trade Practice.
For inquiries on tax allowances, investment incentives, or tax disputes, please contact the authors, Partner Chris Toh Pei Roo (tpr@lh-ag.com) or Associate Soon Jia Ying (jys@lh-ag.com).
[TAX, CUSTOMS & TRADE] 2025 SST Expansion: Key Changes and What Businesses Need to Know
Effective from 1 July 2025, the Government will enforce a major expansion of the Sales Tax and Service Tax (SST) regime.
First introduced in Budget 2025 and originally scheduled to take effect on 1 May 2025, the rollout was later deferred. The new implementation date of 1 July 2025 was recently confirmed by the Ministry of Finance in its press release dated 9 June 2025.
This alert provides an overview of the expanded SST framework and highlights key areas that businesses should be aware of.
For any inquiries, please contact Partner Ivy Ling Yieng Ping (il@lh-ag.com).
[SUCCESSION, TRUSTS, ESTATE PLANNING & PRIVATE WEALTH] Establishing a Single Family Office in Forest City SFZ – What You Need to Know
Malaysia’s new Single Family Office (“SFO”) Incentive Scheme is making waves for the ultra-wealthy. It offers a 0% tax rate for up to 20 years, plus exemptions from stamp duty and capital gains tax on the initial transfer of assets into the SFO.
To qualify, you will need two entities: a family investment vehicle and a licensed management company. The minimum asset under management (“AUM”) requirement is RM30 million.
Compared to Singapore and Hong Kong, Malaysia offers lower entry thresholds, generous tax holidays, and strong regulatory support—all within Forest City’s Special Financial Zone (“SFZ”).
In our latest article, we break down the structure, process, and legal considerations for setting up an SFO in Malaysia.
For advice on establishing an SFO in Malaysia, please reach out to Partner Chris Toh Pei Roo (tpr@lh-ag.com), or Associates Jay Fong Jia Sheng (fjs@lh-ag.com) and Soon Jia Ying (jys@lh-ag.com), of Lee Hishammuddin Allen & Gledhill’s Succession, Trusts, Estate Planning & Private Wealth Practice.
[TAX, CUSTOMS & TRADE] Special Alert: Stamp Duty Treatment for Employment Contracts
On 6 June 2025, the Inland Revenue Board of Malaysia issued a Media Statement, following a policy decision by the Ministry of Finance, clarifying the stamp duty treatment for employment contracts executed before and after 1 January 2025.
In our latest alert, we provide a concise summary of the Ministry’s decision.
For further information on Stamp Duty, please contact Associate Jay Fong Jia Sheng (fjs@lh-ag.com) or Partners, Jason Tan Jia Xin (tjx@lh-ag.com) and Chris Toh Pei Roo (tpr@lh-ag.com).