Legal Updates

Legal Updates for Jan - 2020

Minimum Wages in Malaysia as of 2020

On 1 February 2020, the Minimum Wages Order 2020 will begin to take effect whereby the payable rates for employees who work in a place of employment under the specified 16 City Council and 40 Municipal areas (stated below) will be as follows:

The payable rates for employees who do not work in the specified City Council and Municipal Areas will be as follows:

The specified 16 City Council and 40 Municipal areas are as follows:

City Council Areas

Johor Bahru, Iskandar Puteri, Alor Setar, Melaka Bersejarah, Pulau Pinang, Seberang Perai, Ipoh, Shah Alam, Petaling Jaya, Kuala Terengganu, Kuching Utara, Kuching Selatan, Miri, Kota Kinabalu, Kuala Lumpur, and Seremban.

Municipal Council Areas

Batu Pahat, Kluang, Kulai, Muar, Segamat, Pasir Gudang, Kulim, Sungai Petani, Langkawi, Kubang Pasu, Kota Bharu, Alor Gajah, Jasin, Hang Tuah Jaya, Port Dickson, Jempol, Kuantan, Temerloh, Bentong, Manjung, Kuala Kangsar, Taiping, Teluk Intan, Kangar, Ampang Jaya, Kajang, Klang, Selayang, Subang Jaya, Sepang, Kemaman, Dungun, Padawan, Sibu, Kota Samarahan, Bintulu, Sandakan, Tawau, Labuan, and Putrajaya.

31 Jan 2020 | Malaysia

COMPETITION BITES 2020 - Issue 1
Wishing all a Happy and Prosperous New Year as we issue our first issue of Competition Bites for 2020, providing you with updates of key developments across South East Asia as pulled together by our regional competition law practice. In this issue, snippets include the Malaysia Competition Commission's first decision on resale price maintenance, the Philippine Competition Commission’s first decision on abuse of dominance, a summary of the Competition and Consumer Commission of Singapore’s recent merger review decisions, as well as the Thailand Trade Competition Commission’s new guideline on business franchising. We also discuss Indonesia’s new regulation to assess acquisitions of assets.
29 Jan 2020 | Singapore

New Regulation on SOE Procurement: Redefining SOE Subsidiary and SOE-Affiliated Company

After the issuance of Presidential Regulation No. 16 of 2018 on Public Procurement of Goods and Services, the public procurement landscape in Indonesia underwent another change when the government issued the Minister of State-owned Enterprise Regulation No. PER-08/MBU/12/2019 on Guideline for Procurement of Goods and Services by State-Owned Enterprise ("SOE") ("New Regulation"). The New Regulation supersedes the entire previous regulation on the same subject.

The key changes introduced in the New Regulation relate to following:

(a)      Qualification as an SOE subsidiary or SOE-affiliated company

(b)      Utilisation of state budget

(c)       Optional adoption of the New Regulation

(d)      Additional requirements for direct appointment

(e)      Priority for domestic products

28 Jan 2020 | Indonesia

Indonesia's Legal Landscape in 2020: Prioritised Legislations and Omnibus Law

On 16 January 2020, the Legislation Body of the House of Representatives, the Law Drafting Committee of the Senate and the Minister of Law and Human Rights reached an agreement on Indonesia's National Legislation Program (often referred to as Prolegnas or Program Legislasi Nasional) ("Program").

As in the previous years, this year's Program contains a list of priority bills. At the start of its term of office, the Parliament will establish the Program based on the legislative priority of each of the above institutions. The Program may be evaluated yearly, along with the preparation and determination of the annual priority bills prior to the stipulation of the law on annual state budget (Anggaran Pendapatan dan Belanja Negara or APBN).

Out of 248 bills included in the Program, at least 50 bills have been established as annual priority bills. Four of these are omnibus bills that deal with job creation, state capital, tax and pharmacy.

27 Jan 2020 | Indonesia

Foreign Investment Information Reporting System: What Would You Expect After China has Abolished the Approval and Filing System for Foreign Investment in China?
With the PRC Foreign Investment Law and its Implementation Regulation being enacted on 1 January 2020, China has officially abolished the foreign investment approval (and filing) system. The Ministry of Commerce and its local agencies are now in charge of the new foreign investment information reporting system, which was implemented simultaneously along with the Foreign Investment Law and its Implementation Regulation. In order to implement the new information reporting system, the authorities have issued certain measures and announcements, including the Measures for Foreign Investment Information Reporting. In this Update, we detail some significant points of these measures.
24 Jan 2020 | Singapore

Recent Developments in Vietnam

This Update provides a summary each of the key developments in Vietnam on banking and immigration law.

24 Jan 2020 | Vietnam

SGX Proposes New Requirements on Appointment of Auditors and Property Valuation
The Singapore Exchange Regulation ("SGX RegCo") is conducting a public consultation to seek comments on proposals to amend the SGX-ST Mainboard Rules and Catalist Rules to enhance the regulatory regime for appointment of auditors of issuers listed on the SGX-ST, and impose new requirements on the qualifications for property valuers and the standards for property valuation reporting. Comments on the proposals must be submitted to SGX RegCo by 14 February 2020.
23 Jan 2020 | Singapore

SGX Enhances Mainboard Listing Rules on Regulation of Issue Managers from 10 January 2020
On 10 January 2020, the Singapore Exchange Regulation announced the amendments of the SGX-ST Mainboard Listing Rules on the regulation of Issue Managers ("IMs"). These amendments clarify the responsibilities of IMs, incorporate the Association of Banks in Singapore Listings Due Diligence Guidelines into the SGX-ST Mainboard Listing Rules, specify the independence thresholds of IMs, and clarify the responsibilities of directors and executive officers of an issuer in respect of information provided in listing applications. This Update provides a summary of the key aspects of the amendments.
22 Jan 2020 | Singapore

Sea-change in Singapore's Funds Industry – the Birth of Variable Capital Companies
On 14 January 2020, the Variable Capital Companies Act 2018 ("VCC Act") and its subsidiary legislation came into force to introduce a new legal framework for variable capital companies ("VCCs"). The VCC is a new corporate structure for investment funds vehicles, with the goal of achieving Singapore's drive to be an Asian hub for fund management and fund domiciliation.

The Variable Capital Companies (Miscellaneous Amendments) Act ("VCCMA Act"), which seeks to amend the Income Tax Act, the Goods and Services Tax Act and the Stamp Duties Act to provide for the tax treatment for VCCs, partially came into force on 15 January 2020. The provisions in the VCCMA Act that will amend the insolvency provisions in the VCC Act have yet to come into force.

This Client Update provides an overview of a VCC's features and compliance requirements with reference to the VCC Act, its subsidiary legislation, and the VCCMA Act.
17 Jan 2020 | Singapore

A New Era of Foreign Investment Regulatory Regime in China: State Council of China Issues Implementation Regulation of Foreign Investment Law
Further to the new PRC Foreign Investment Law ("Foreign Investment Law") which was passed on 15 March 2019 and has come into effect since 1 January 2020, the State Council of China promulgated the Regulation on Implementation of the Foreign Investment Law (中华人民共和国外商投资法实施条例, the "Implementation Regulation") on 31 December 2019, which has also come into effect since 1 January 2020. We set out in this Update some salient points of the Implementation Regulation.
17 Jan 2020 | Singapore

Opening for Application for Mineral Exploration License of New Concession Areas

On 10 January 2020, the Ministry of Mines and Energy ("MME") issued Announcement No. 001 ME.DIM.SCN on the Opening for Application for Mineral Exploration License of the Concession Areas ("Announcement"). The MME welcomes Cambodian or foreign legal entities to bid for mineral exploration license in the eight new concession areas identified in the Announcement.

16 Jan 2020 | Cambodia

SGX Amends Listing Rules on 7 February 2020 to Adopt Risk-based Approach to Quarterly Reporting and Enhance Continuous Disclosure Requirements
On 9 January 2020, the Singapore Exchange Regulation ("SGX RegCo") announced that the SGX-ST Mainboard Rules and Catalist Rules (collectively "Listing Rules") will be revised on 7 February 2020 to adopt a risk-based approach to quarterly reporting and to enhance the continuous disclosure requirements relating to, among other things, transactions with interested persons, rights issue fund-raising, provision of significant financial assistance to third parties and significant disposal of assets.

A summary of the key Listing Rules changes taking effect on 7 February 2020 is set out herein.
13 Jan 2020 | Singapore

Constitutional Court Curbed Creditor's Enforcement Power

Towards the end of 2019, the Indonesian Constitutional Court handed down a startling decision declaring certain articles in Law No. 42 of 1999 on Fiduciary Security ("Fiducia Law") on creditor's power to enforce security to be conditionally unconstitutional. The case in the decision involved an application for judicial review by a debtor who claimed that they have suffered losses as a result of the unscrupulous repossession of a security by a multi finance company.

The provisions in question are Articles 15(2) and (3) of the Fiducia Law. Article 15(2) provides that a fiduciary certificate has enforcement powers equivalent to a final and binding court decision. Article 15(3) stipulates that if a debtor is in default, the fiducia grantee (e.g. the creditor or security agent, as the case may be) has the right to sell the fiducia security object on its own powers.

10 Jan 2020 | Indonesia

First Stage of Resource Sustainability Act Comes into Force
The Resource Sustainability Act ("Act") was passed in Parliament on 9 September 2019, and forms part of Singapore's Zero Waste Masterplan. The Act is set to be implemented incrementally from 2020 to 2025, and on 1 January 2020, the first stage of the Act came into effect. This Update takes a look at the parts of the Act which have come into force, as well as the timeline for the implementation of the remainder of the Act.
09 Jan 2020 | Singapore

More Details on the New Electronic Systems and Transactions Regulation

Following up on AHP’s previous alert on the relaxation of data localisation requirement under Government Regulation No. 71 of 2019 on Electronic Systems and Transactions ("Regulation"), this Update discusses the other key requirements that electronic system operators must fulfil to comply with the Regulation. 

  1. Mandatory registration – Previously, registration with the Ministry of Communications and Informatics ("Ministry") was mandatory only for electronic system operators providing public services. Under the Regulation, both public and private operators must register themselves with the Ministry.
  2. Removal of prohibited contents – The Regulation requires an operator to ensure that its platform is free from prohibited contents.

 

07 Jan 2020 | Indonesia