Legal Updates

Legal Updates for Jun - 2019

Indonesia Announces New Property Tax Facility Designed to Boost the Economy

As part of its intention to stimulate investment in Indonesia, the Indonesian government through the Ministry of Finance recently announced a series of new property tax facility. The new property tax facility is designed to create a multiplier effect given that the property industry relates to other main industries such as construction, financial, trade, transportation and even the food and beverage industry.

Broadly, the new property tax facility relates to luxury property by imposing an increased limit on the value of luxury property that is subject to Article 22 Income Tax and Luxury-Goods Sales Tax (Pajak Penjualan atas Barang Mewah or PPnBM), and a reduction of the rate of Article 22 Income Tax.

27 Jun 2019 | Indonesia

E-Court Registration Is Now Mandatory For Civil Cases

In 2018, the Supreme Court issued Regulation No. 3 of 2018 on Electronic Case Administration in Court (“Regulation”), which requires the electronic filing of a civil case, or commonly referred to as ‘e-court’. Since then, the Supreme Court has continually issued several regulations to implement this.

Most recently, the Supreme Court issued Circular Letter No.04 of 2019 on Requirement to Register Civil Cases Through E-Court ("Circular Letter") as it is of the view that there has been no significant changes made with regards to the implementation of e-court. In essence, the Circular Letter requires all District Court of Special IA Class, IA Class, and all District Courts under the jurisdictions of the Banten High Court, Jakarta High Court, Bandung High Court, Semarang High Court, Yogyakarta High Court, and Surabaya High Court to implement registration of civil cases through the e-court system.

27 Jun 2019 | Indonesia

Singapore International Commercial Court Issues First Judgment on Arbitration
The Singapore International Commercial Court ("SICC") has issued its first judgment dealing with arbitration proceedings. In BXS v BXT [2019] SGHC(I) 10, the SICC faced an application to set aside an arbitral award, as well as an application to strike out the setting aside application on the ground that the three-month time limit had expired. The SICC issued a judgment that confirmed that the three-month time limit was mandatory, and also dealt with whether the SIAC's appointment of a sole arbitrator in expedited proceedings was a grounds for challenge when the parties had agreed to three. The Defendant was successfully represented by Paul Tan, Alessa Pang and David Isidore Tan of Rajah & Tann Singapore LLP on instructions by Allen & Overy.
26 Jun 2019 | Singapore

Decision of Vietnam Competition Council on GrabTaxi – Uber’s deal

On 11 June 2019, the Viet Nam Competition Council (“VCC”) conducted a closed hearing regarding the alleged economic concentration activity of Grab Taxi Company Limited (“GrabTaxi”) and Uber Viet Nam Limited (“Uber Vietnam”). On 17 June 2019, VCC announced Decision No. 26/QD-HDXL, in which VCC determined that the purchase, transfer and receipt of obligations between GrabTaxi and Uber Vietnam did not constitute an act of economic concentration under the Law on Competition.

26 Jun 2019 | Vietnam

Enforcement of Adjudication Determinations by Claimants in Liquidation
In Seymour Whyte Constructions Pty Ltd v Ostwald Bros Pty Ltd (In liquidation) [2019] NSWCA 11 (“Seymour Whyte”), the NSW Court of Appeal unanimously held that as a matter of construction, the Building and Construction Industry Security of Payment Act 1999 (NSW) (“NSW SOP Act”) is capable of operating for the benefit of a builder or subcontractor which has gone into liquidation. In reaching its decision, the NSW Court of Appeal held that the Victorian Court of Appeal decision in Façade Treatment Engineering Pty Ltd (in liq) v Brookfield Multiplex Constructions Pty Ltd [2016] VSCA 247 was “plainly wrong” and should not be followed.

This update provides a summary of Seymour Whyte and the ruling of the Court in that case. It also looks at the implications that the case will have in the Singapore context, given that Singapore’s Building and Construction Industry Security of Payment Act (Cap 30B) (“SOP Act”) was largely modelled after the NSW SOP Act.
07 Jun 2019 | Singapore

Welcome to our Issue 2 of Competition Bites, providing you with updates of key developments primarily across South East Asia! In this quarterly competition law update, we discuss, among others, the setting-up of the National Competition Commission in Vietnam, the long-awaited IP Guidelines in Malaysia and the first abuse of dominance case in the Philippines. Focus for this issue is Indonesia's long-awaited new regulation on case handling procedure.
06 Jun 2019 | Singapore

Hong Kong Competition Tribunal Issues its First Two Infringement Decisions
On 17 May 2019, the Hong Kong Competition Tribunal issued its first two infringement decisions under the Hong Kong Competition Ordinance. The first case involved five IT companies that were alleged to have engaged in bid-rigging and the second case involved ten renovation contractors that were alleged to have entered into price-fixing and market sharing agreements. The two cases mark the arrival of enforcement of competition law in Hong Kong, and is a reminder to businesses operating across Asia to review competition concerns as they develop their strategies. This Update provides a summary of the Tribunal’s decisions of the two cases and touches on some critical issues.
04 Jun 2019 | Singapore

Guideline on the Determination of Types of Employment Contracts

There are two types of employment contracts under Cambodian Labour Law (“Labour Law”): the undetermined duration contract (“UDC”) and the fixed duration contract (“FDC”). Article 67 of the Labour Law provides that an FDC shall contain a specified ending date and cannot be made for a period longer than 2 years.  It can be renewed many times, as long as the renewal does not surpass the maximum duration of 2 years.

The interpretation of this provision is debatable. One school of thought holds that an FDC can be renewed as many times as the parties wish as long as each or all renewal does not exceed 2 years, while another one affirms that an FDC shall become a UDC when the total duration of the contract including the renewal exceeds 2 years.

To clarify the controversial interpretation of Article 67 of the Labour Law, the Ministry of Labour and Vocational Training issued Guideline No. 050/19 LV/N.MLVT on 17 May 2019 concerning the determination of the two types of employment contracts (“Guideline”). This update sets out the key features of the Guideline.

01 Jun 2019 | Cambodia