Wong Yee Boon v Gainvest Builders [2017] 10 CLJ 209
The plaintiff/appellant (Wong Yee Boon) informed the defendant/respondent (Gainvest) that he has connections with CRBC (Malaysia) Holding Sdn Bhd (CRBC) and may secure sub-contract works under a government project for Gainvest. The parties entered into an introducer agreement where Wong Yee Boon would be remunerated upon successful award of subcontract works to Gainvest by CRBC.
CRBC awarded a subcontract to Gainvest. Gainvest claimed that the contract did not have any connection with Wong Yee Boon. Gainvest terminated the introducer agreement with Wong Yee Boon.
The Court of Appeal stated that the purpose of the agreement was to procure the subcontract in respect of a public interest project. In affirming the decision of the High Court, it was held that the introducer agreement contravenes section 24(e) of the Contracts Act 1950, and is void on grounds of public policy.
Redang Paradise Vacation Sdn Bhd v Yap Chuan Bin & Other Appeals [2017] 10 CLJ 296
The defendants appealed against the decision of the Magistrate Court, but filed and served a duplicate copy of the notice of appeal. The High Court held that a duplicate copy is not sufficient, and the copy served must be endorsed by the Court.
On appeal to the Court of Appeal, the Court of Appeal held that there is no requirement in law or rules to require an endorsed notice of appeal to be served within the time frame of the appeal.
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Launch of Islamic Securities Selling and Buying Negotiated Transaction
The Islamic Securities Selling and Buying Negotiated Transaction (ISSBNT) was launched by Bursa Malaysia Berhad on 13 December 2017, the world’s first Shariah-compliant alternative to the Securities Borrowing and Lending Negotiated Transaction framework.
The ISSBNT framework was developed to provide a more facilitative trading environment and improve trading liquidity and velocity of securities while still adhering to principles of Islamic finance. The key objective of ISSBNT includes:
enabling hedging and risk management activities of Islamic funds and wealth managers;
advancing the development of Islamic Exchange Traded Funds market though improved liquidity.
Transparency of digital currencies in Malaysia
Bank Negara Malaysia (BNM) had, on 14 December 2017, issued an exposure draft on the invocation of reporting obligations on digital currency exchange business as reporting institutions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).
BNM is seeking to ensure that effective measures are in place to combat money laundering and terrorism financing risks associated with the use of digital currencies. As such the proposed policy sets out the legal obligations, requirements and standards that digital currency exchangers must carry out as reporting institution under AMLA.
It must be noted that the invocation of reporting obligations under the AMLA does not signify BNM’s authorisation, licensing, endorsement or validation of any entities involved in the provision of digital currency exchange services. Digital currencies remain as a non-legal tender in Malaysia. The public is advised to carefully evaluate the risks associated with dealings in digital currencies.
BNM invites written feedback on the specific requirements set out in the exposure draft by 14 January 2018.
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The Chatime Saga — La Kaffa International Co Ltd v Loob Holdings Sdn Bhd and another case
La Kaffa International Co Ltd (La Kaffa), the owner of the famous Taiwanese global franchise teahouse chain, Chatime, applied for an injunction to restrain Loob Holdings Sdn Bhd (“Loob Holdings”), La Kaffa’s former franchise holder, from carrying a similar business under the brand “Tealive” after the termination of its franchise agreement in Malaysia.
The High Court dismissed La Kaffa’s application and held that an injunction would cause great risk of injustice to Loob Holdings’ business and associates. The High Court, however, ordered Loob Holdings to disclose its monthly gross sales for the purpose of the arbitration proceedings between both parties in Singapore. In addition, the High Court also ordered Loob Holdings to return to La Kaffa all materials related to Chatime's trade marks and all proprietary information belonging to La Kaffa.
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Gift Rules (Public Ruling No 3/2017) — issued on 1 December 2017; and
Issuance and Holding of Securities (Public Ruling No 4/2017) — issued on 12 December 2017.
Further, the revised versions of the following Industry Guides have been published on the RMCD’s GST website:
Commercial Banking (revised as at 19 December 2017);
Fund Management (revised as at 20 December 2017);
Tourist Refund Scheme (revised as at 21 December 2017); and
Warehousing Scheme (revised as at 11 December 2017).
Lastly, a revised version of the following has also been published on the RMCD’s GST website:
Layanan Cukai Barang dan Perkhidmatan bagi Tuntutan di bawah Suatu Waranti daripada Pengilang Luar Negara (only available in the Malay language — revised as at 22 December 2017)
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