[TAX, CUSTOMS & TRADE] Tax Pulse: Empowering the Digital Future: Malaysia’s Tax Incentives for Investors
Foreign investments in Malaysia have surged in the digital sector, with data centres being a particularly notable area of growth. Malaysia has become one of Asia’s fastest-growing data centre markets. Consistent with its long history of promoting the digital agenda, Malaysia is offering incentives to support digital-related activities. These incentives are being offered through the Malaysia Digital Economy Corporation (“MDEC”) and the Malaysian Investment Development Authority (“MIDA”).
In this alert, we provide an overview of the following:
• The Malaysian Digital (“MD”) status (previously known as the MSC Malaysia Status) and the MD Tax Incentives, offered through MDEC.
• The Digital Ecosystem Acceleration Scheme (“DESAC”) offered through MIDA.
The Tax, Customs & Trade Team at LHAG is ready to assist you in navigating the application process for tax and digital incentives. For assistance or advice in incentives applications, please contact the authors: Partner, Chris Toh Pei Roo (tpr@lh-ag.com) or Associate Chang Jin Yee (cjy@lh-ag.com).
[ESG] What Does Anti-Human Trafficking Have to Do with ESG?
Malaysia’s upgrade to Tier 2 in the 2024 U.S. State Department’s Trafficking in Persons (“TIP”) Report highlights the country’s increased efforts in combating human trafficking, which may overlap with concerns of forced labour, slavery, and child labour. Companies and businesses’ alignment with such efforts will contribute to their performance under the Social pillar of ESG.
If you have any queries, please contact the author, Tan Hooi Ping (hpt@lh-ag.com).
[INTERNATIONAL ARBITRATION] Special Alert: Modernisation of Malaysia’s Arbitration Legislation: A Concise Overview of the Arbitration (Amendment) Bill 2024
On 15.7.2024, the Arbitration (Amendment) Bill 2024 (“Bill”) was tabled for its first reading in Parliament. The Bill presents several proposed amendments to the current legislative framework in Malaysia, aimed at enhancing the nation’s reputation and influence within the international arbitration community.
This alert will discuss some of the key amendments to the Arbitration Act 2005 introduced in the Bill.
If you have any queries, please contact the authors, Crystal Wong Wai Chin (wwc@lh-ag.com), and Soh Zhen Ning (szn@lh-ag.com).
[TAX, CUSTOMS & TRADE] Tax Pulse: Post-SVDP 2.0 and the Return of the Revenue: Navigating New Challenges in Tax Audits and Investigations
With the conclusion of the Special Voluntary Disclosure Programme 2.0 (“SVDP 2.0”) on 31.5.2024, the Inland Revenue Board (“IRB”) has intensified its focus on tax audits and investigations. The newly established Strategic Compliance Branch (Cawangan Pematuhan Strategik) has been actively conducting raids, investigations, and desk audits across various industries and sectors in recent weeks.
The updated 2024 Tax Investigation Framework (“TIF”) signals stronger enforcement measures, including the prospect of unannounced inspections on business premises and even the residences of taxpayers, tax agents, and other relevant parties.
In this alert, we summarise the latest developments in the tax scene of mid-2024.
The Tax, Customs & Trade Team at LHAG is ready to assist you in navigating these evolving regulatory landscapes. For assistance regarding ongoing tax audits or investigations by the IRB, please contact the author, Chris Toh Pei Roo (tpr@lh-ag.com), or his fellow tax Partners Jason Tan Jia Xin (tjx@lh-ag.com) and Ivy Ling Yieng Ping (il@lh-ag.com).
[ESG] How the Extension of the Invalidity Scheme to Foreign Employees Aligns with ESG
The extension of the Invalidity Scheme under Malaysia’s SOCSO to foreign employees, effective 1 July 2024, is not just an added legal obligation for employers but also encourages companies and businesses to align with ESG principles.
If you have any queries, please contact the author, Tan Hooi Ping (hpt@lh-ag.com).
Legal Herald (Issue 02 | 2024)
Dear Reader,
Greetings from Lee Hishammuddin Allen & Gledhill!
We are delighted to present to you the second issue of our firm’s main publication. In this issue, we shed light on the impact of recent antitrust battles of Apple, explore challenges for maintaining data integrity in today’s evolving work environment, provide insights into the remuneration of liquidators, and offer effective strategies for asset tracing and recovery in fraud cases.
Enjoy the read!
Steven Tee
Partner
[CYBERSECURITY DATA & PRIVACY] Special Alert: PDPA 2010 Amendments Approved by Cabinet
On 4 July 2024, Minister of Digital, Gobind Singh Deo, announced the Cabinet’s approval of proposed amendments to Malaysia’s Personal Data Protection Act 2010 (“PDPA 2010”), set to be tabled during the current parliamentary session running from 24 June 2024 to 18 July 2024. Inspired by the European Union General Data Protection Regulations (“EU GDPR”), these amendments are poised to significantly impact Malaysian organisations’ data processing practices upon enactment.
This article highlights the key revisions announced by Gobind, which include mandatory data breach notifications, heightened responsibilities for data processors, and the prospective requirement for appointing Data Protection Officers.
If you have any queries, please contact CyberDataPrivacy lawyer, Arissa Ahrom (aa@lh-ag.com).
#lhagcdppractice
[EMPLOYMENT] Special Alert: Extension of Invalidity Scheme to Foreign Workers Effective 1 July 2024
Effective July 1, 2024, foreign workers in Malaysia will be eligible for the Invalidity Scheme under the Social Security Organisation (SOCSO).
In this alert, we summarise key takeaways from this initiative, which marks a significant enhancement to the protection of foreign employees’ welfare. This move aligns Malaysia with international labour standards, reinforcing the country’s commitment to the health, safety, and welfare of all workers.
If you have any queries, please contact Associate, Ashreyna Kaur Bhatia (akb@lh-ag.com), or her team Partner, Amardeep Singh Toor (ast@lh-ag.com).
[INTERNATIONAL ARBITRATION] Special Alert: Shifting Tides: The Fate of Arbitration Clauses in Liquidation Proceedings
In liquidation or winding-up proceedings, what happens if the disputed debts in question are subject to an arbitration agreement? Are the courts entitled to scrutinise the genuineness of disputed debts before deciding whether to stay the winding-up proceedings and refer parties to arbitration? These issues were recently considered by the Court of Appeal of Malaysia and the Privy Council.
In this alert, we will first discuss the decisions in Swissray Asia Healthcare Co. Ltd v V Medical Services M Sdn Bhd (Civil Appeal No. W-02(NCC)(A)-1479-08/2022) and Sian Participation v Halimeda International Ltd [2024] UKPC 16, before turning to analyse the practical implications of these decisions on creditors and debtors in winding-up proceedings.
If you have any queries, please contact the authors, Crystal Wong Wai Chin (wwc@lh-ag.com), Soh Zhen Ning (szn@lh-ag.com), and Ruth Lim Jia Yun (jylim@lh-ag.com).
[TMT] Special Alert: Safeguarding IT Service Providers: Addressing Breach of Payment Terms in IT Contracts
Breach of payment terms is a common issue in IT contracts, often leading to disputes and cash flow problems for IT service providers.
This alert examines various contractual mechanisms that can be employed to mitigate the problem.
If you have any queries, please contact Associate, James Lau Jian Hui (ljh@lh-ag.com), or his team Partner, Chan Mun Yew (myc@lh-ag.com). They have notable experience in handling disputes relating to the Technology, Media & Telecommunication (TMT) industry.