Legal Updates for Feb - 2020
Upon ratification by both countries, the updated DTA will progressively enter into force. It is expected to boost bilateral trade and investment flows, which is welcome news to parties with business dealings in both countries both on an individual and corporate level.
The implications of a number of key changes are examined in this Client Update. 29 Feb 2020 | Singapore
Before the Law on Commercial Contract takes effect, contracts for the licensing of marks in Cambodia are governed by the existing laws, including the Law on Marks, Trade Names and Acts of Unfair Competition of 2002 ("Trademark Law"). The Trademark Law mandates that a license contract must be recorded with the register of the Department of Intellectual Property of the Ministry of Commerce ("MOC"), so that it can be used to assert against unauthorised use of a mark by a third party. However, the Trademark Law is silent on franchise contracts of the same nature.
On 12 March 2015, MOC issued Notification No. 0738 on the Recordal of License Contract and Franchise Contract ("Notification") to fill in the gap of the Trademark Law. The Notification mandates the registration and recordal of both license contracts and franchise contracts with the register of MOC. On 13 January 2020, MOC issued Prakas No. 036 MOC.IP.PR on the Recordal of License Contract over Mark and Franchise Contract with 27 clauses dealing with the requirements and procedures for the recordal of license contracts, sub-license contracts, franchise contracts, and sub-franchise contracts. These provisions are more comprehensive than the ones provided in the Notification.26 Feb 2020 | Cambodia
Singapore Court of Appeal Delivers Landmark Judgment on Doctrine of Mistake in Cryptocurrency-Related Contract ClaimRajah & Tann Singapore's financial services disputes team secured a win for one of the world’s leading cryptocurrency trading companies, B2C2 Ltd ("B2C2"), before the Singapore Court of Appeal. In a ground-breaking decision (Quoine Pte Ltd v B2C2 Ltd  SGCA(I) 02), Singapore's apex court addressed novel legal issues arising in the unregulated and “not for the faint hearted” world of cryptocurrency algorithmic trading. The ruling affirms the first instance decision of the Singapore International Commercial Court, in which cryptocurrency exchange operator, Quoine Pte Ltd was found liable for breach of contract in unilaterally reversing completed trades in Bitcoin and Ethereum. B2C2 was represented by lead counsel, Danny Ong, along with Rajah & Tann’s Sheila Ng, Zhuang Wenxiong and Jason Teo. 26 Feb 2020 | Singapore
As businesses adapt to the evolving situation, we address some frequently asked questions on an employer's obligation to comply with the Singapore Government's defensive measures and to provide a safe workplace for their employees while maintaining business continuity. 25 Feb 2020 | Singapore
On 28 January 2020, Indonesia ratified the WIPO (World Intellectual Property Organisation) Beijing Treaty on Audiovisual Performances ("Beijing Treaty"). The Treaty provides the legal basis to implement the protection of audiovisual performance works shown through electronic media.
The Beijing Treaty’s official website states that it is a multilateral treaty that acknowledges the intellectual property rights of performers with regard to their audiovisual performances. It provides the global standards in recognising the right of audiovisual performers to be compensated fairly for the use of their creative contributions. The Beijing Treaty grants economic rights as well as moral rights to the performers, allowing them to capitalise on their performances, improve their livelihoods, and better protect their images.24 Feb 2020 | Indonesia
This Update discusses selected tax measures announced in the Singapore Budget 2020, including temporary measures to provide support for enterprises under the Stabilisation and Support Package and measures to ensure the resilience and competitiveness of our tax system. 21 Feb 2020 | Singapore
After Push from the Industry, Government Relaxes Foreign Ownership Restrictions on Insurance Companies
Recognising the role of foreign insurance companies and foreign investors with their capital, experience and technology, the Indonesian government in 2018 issued Government Regulation No. 14 of 2018 ("Regulation 14/2018") to allow up to 80% of foreign ownership in a non-publicly listed insurance company. This allowance has been relaxed even further through Government Regulation No. 3 of 2020 ("Regulation 3/2020"), which allows a foreign investor to hold more than 80% of the shares of a non-publicly listed insurance company in Indonesia.
Pursuant to Regulation 14/2018, foreign citizens and entities were precluded from owning more than 80% ("Foreign Ownership Limit") of the paid-up capital of an insurance company (i.e. non-publicly listed insurance company, Sharia insurance company, reinsurance company, Sharia reinsurance company, insurance brokerage company, reinsurance brokerage company and insurance loss adjuster company). If an insurance company wishes to increase its paid-up capital, at least 20% of the additional paid-up capital must be obtained from an Indonesian entity and/or citizen, or through an initial public offering (IPO) in Indonesia.
Regulation 3/2020 has clarified that a non-publicly listed insurance company whose foreign ownership has exceeded the 80% threshold will be exempted from the Foreign Ownership Limit. This means that foreign investors can increase their shareholding in proportion to their existing ownership percentage.18 Feb 2020 | Indonesia
Salvaging the Salvor: The Decision of the Malaysian Apex Court in Fordeco Sdn Bhd v PK Fertilizers Sdn Bhd
In a unanimous decision delivered by a five-man panel, the Malaysian apex court shed light on important aspects of the law on salvage. The judgment of the Federal Court was delivered by Malaysia’s first Admiralty Court Judge, Nallini Pathmanathan FCJ.
The judgment re-stated the principles on general average and further discussed the following two key issues relating to the law of salvage:
- When is a contract termed one for salvage rather than for towage or for carriage of goods; and
- What is the standard of care in assessing whether a salvor was negligent in the course of salvage operations?
At the end of 2019, Indonesia's financial services authority,Otoritas Jasa Keuangan or “OJK”, issued Regulation No. 28 of 2019 on Synergy of Banks under One Ownership for the Development of Shariah Banking (“Regulation”). The Regulation aims to improve the efficiency of the national banking industry, and encourage cooperation between conventional banks and Shariah banks with an ownership relationship (through common controlling shareholder or where the conventional bank is the controlling shareholder of the Shariah bank).
Under the Regulation, the synergy between conventional and Shariah banks is to be reflected in resources sharing, including with respect to human resources, branch network and IT. While Shariah banking in Indonesia has grown steadily, their resources are still not on par with that of the conventional banking. By allowing Shariah banks to tap into the resources of their conventional counterparts, OJK hopes that Shariah banks would finally be able to compete on a level playing field.12 Feb 2020 | Indonesia
Exemption from Qualifying Certificate Regime for Publicly Listed Housing Developers with Substantial Connection to SingaporeOn 6 February 2020, the Ministry of Law and Singapore Land Authority, in a joint announcement, announced the introduction of an exemption from the existing Qualifying Certificate regime for publicly listed housing developers with substantial connection to Singapore when they acquire residential land from persons (other than the Singapore Government) for the purpose of development ("Exemption"). In this Update, we take a look at the effect of the Exemption, its criteria and relevant issues of applicability. 07 Feb 2020 | Singapore
This Update provides a summary each of the following key labour law developments in Cambodia in the fourth quarter of 2019:
- Deadline of Application for Foreign Manpower Quota for 2020 Moved to End of 2019
- Law on Social Security Schemes
- Paid Public Holidays in 2020
- Lift of Ban on Occupations Performed by Self-employed Foreign Nationals
In this Client Update, we review the decisions and developments over the course of 2019, focusing on notable trends including the growing significance of Alternative Dispute Resolution, the facilitation of cross-border dispute resolution and adaptation to digitalisation. We also take a look at some of the decisions over the past year in the areas of Restructuring & Insolvency, Property Law, Contract Law, Shipping Law, Criminal Law and Construction Law. 05 Feb 2020 | Singapore
The Financial Services Authority (Otoritas Jasa Keuangan or "OJK") issued OJK Regulation No. 41/POJK.03/2019 on Merger, Consolidation, Acquisition, Integration and Conversion of Commercial Banks ("Regulation") at the end of last year. The Regulation revokes Bank Indonesia decrees No. 32/50/KEP/DIR on Requirements and Procedures to Purchase Shares of Banks and No. 32/51/KEP/DIR on Requirements and Procedures of the Merger, Consolidation and Acquisition of Banks.
The Regulation stipulates that OJK will govern the process and procedure of merger, consolidation, acquisition, integration and conversion (collectively, "corporate actions") of commercial banks.04 Feb 2020 | Indonesia