[ESG] Green Aspirations: Malaysia’s Climate Policy 2.0 Takes Flight
The Ministry of Natural Resources and Environmental Sustainability has responded to the pressing issue of climate change with the launch of the National Climate Change Policy 2.0. The updated policy reaffirms the country’s commitment to climate change by introducing a new framework for its transition towards a low-carbon economy.
If you have any queries, please contact the author, Joyce Ong Kar Yee (oky@lh-ag.com).
Legal Herald (Issue 03 | 2024)
Dear Reader,
Greetings from Lee Hishammuddin Allen & Gledhill!
We are delighted to present to you the third issue of our firm’s main digital publication for the past two years. It is, interestingly, an eclectic combination of articles that reflect not only the developments in the widely varied legal world we inhabit, but also the firm’s ability to remain on top of these changes.
In this issue, we delve into the available defences for offences under Section 17A of the Malaysian Anti-Corruption Commission Act 2009, explore the implications of the EU’s Corporate Sustainability Due Diligence Directive, and break down Malaysia’s new Progressive Wage Policy. Additionally, we examine the legality of differing rates for maintenance charges in stratified mixed developments, discuss the admissibility of documents classified under the Official Secrets Act 1972, and provide a detailed introduction to ESG litigation.
Enjoy the read!
Steven Tee
Partner
[ENERGY, PROJECTS & INFRASTRUCTURE] Special Alert: Third Party Access to the Electricity Grid: The Release Of Cress Guidelines
For the first time, consumers will hold the power to choose their energy supplier under the CRESS programme. In conjunction with its launch, official guidelines for the implementation of CRESS have been released, showcasing the government’s commitment to the prompt execution of the National Energy Transition Roadmap.
If you have any queries, please contact Partner, Joyce Ong Kar Yee (oky@lh-ag.com).
[EMPLOYMENT] Special Alert: Trade Unions & Sole Bargaining Rights: The Future of Collective Bargaining
The Ministry of Human Resources has announced the enforcement of key legislative changes effective 15 September 2024, which include amendments to the Industrial Relations Act 1967 and the Trade Unions Act 1959. These reforms aim to enhance freedom of association and collective bargaining, notably allowing the formation of multiple trade unions. This article explores the implications of these amendments for the future of collective bargaining in Malaysia.
If you have any queries, please contact Associate, Summer Chong Yue Han (yhc@lh-ag.com), or her team Partner, Shariffullah Majeed (sha@lh-ag.com).
[EMPLOYMENT] Special Alert: Navigating Relocation Requests: Denial Does Not Constitute Grounds for Constructive Dismissal
The Industrial Court recently affirmed that rejecting a transfer request does not amount to constructive dismissal if done in good faith, especially when there is a protracted delay by the employee in claiming constructive dismissal, as well as a failure to put the employer on notice regarding their grievance. This issue is particularly significant in the age of flexible working arrangements, where employees are now endowed with the right to put in requests for alternative working set-ups.
In this alert, we summarise key takeaways from the Award of the Industrial Court and the factors taken into account when deciding whether the employee was constructively dismissed.
The Award of the Industrial Court can be read here.
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).
[ESG] Advancing ESG & Sustainability Through Anti-Corruption Practices
Transparency International Malaysia President Dr. Muhammad Mohan, in a recent interview, emphasised the need for a holistic change for Malaysia to reach the 25th position in the Corruption Perceptions Index by 2033, which requires cooperation from all sectors, including the public and private sectors, non-governmental organisations, and political leaders.
This alert highlights the importance for Malaysian companies and businesses to adopt robust anti-corruption practices. This is crucial not only for legal compliance and alignment with the national agenda, but also for advancing their ESG and sustainability commitments.
If you have any queries, please contact the author, Tan Hooi Ping (hpt@lh-ag.com).
[TAX, CUSTOMS & TRADE] Special Alert: Intercompany Financing & Borrowings in Tax Audits by the IRB: A Looming and Real Threat
Recent tax audits by the Inland Revenue Board (“IRB”) are putting CFOs and tax managers on high alert, especially concerning intercompany loans and related-party transactions. The threat of imputed interest income and penalties is real. Companies must take immediate action to safeguard their rights and ensure audit preparedness.
If you have any queries on transfer pricing and intercompany transactions, please contact Partners Jason Tan Jia Xin (tjx@lh-ag.com) and Chris Toh Pei Roo (tpr@lh-ag.com).
[ESG] Third Party Access to The Electricity Grid – The Introduction Of CRESS
For the first time, consumers will hold the power to choose their energy supplier under the CRESS programme. Expected to launch in September 2024, CRESS marks a significant step towards liberalisation of the country’s electricity market and provides consumers with green electricity options to reduce their carbon footprint.
If you have any queries, please contact the author, Joyce Ong Kar Yee (oky@lh-ag.com).
[EMPLOYMENT] Prevention of Insider Jobs Within Financial Institutions
As reports of insider jobs within financial institutions increase, it is essential for employers to not only review security measures but also develop robust strategies to deter and prevent unethical or illegal activities by employees. This article explores various strategies to safeguard organisations while promoting a secure and compliant work environment.
If you have any queries, please contact Associate, Summer Chong Yue Han (yhc@lh-ag.com), or her team Partner, Shariffullah Majeed (sha@lh-ag.com).
[TAX, CUSTOMS & TRADE] Special Alert: Anti-Dumping Investigation into Exports of Clear Float Glass from Malaysia to Brazil
On 29 July 2024, the Brazilian Government initiated an anti-dumping investigation on exports of clear float glass with a thickness of 1.8mm to 20mm from Malaysia to Brazil. Malaysian float glass manufacturers that export to Brazil will be subject to the investigation. The preliminary alleged dumping margin for Malaysia is 63.22%.
If you have any queries, please contact our Partner Jason Tan Jia Xin (tjx@lh-ag.com).