Putrajaya: Businesses to continue getting relief from contractual obligations unfulfilled due to Covid-19 restrictions up to Oct 22 next year

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While announcing the extension in a statement today, Minister in the Prime Minister’s Department (Parliament and Law) Datuk Seri Wan Junaidi Tuanku Jaafar said the move was pursuant to subsection 5 (2) of Act 829. — Bernama pic
While announcing the extension in a statement today, Minister in the Prime Minister’s Department (Parliament and Law) Datuk Seri Wan Junaidi Tuanku Jaafar said the move was pursuant to subsection 5 (2) of Act 829. — Bernama pic

KUALA LUMPUR, Dec 30 — Part II (Inability to Perform Contractual Obligations) of the Temporary Measures to Reduce the Impact of Coronavirus Disease 2019 Act (Covid-19) [Act 829] will be extended until October 22, the federal government said today.

The law, which provides relief to contracting parties that were unable to fulfil contractual obligations due to government restrictions such as within the National Recovery Plan, was supposed to end tomorrow, December 31.

While announcing the extension in a statement today, Minister in the Prime Minister’s Department (Parliament and Law) Datuk Seri Wan Junaidi Tuanku Jaafar said the move was pursuant to subsection 5 (2) of Act 829.

“The Minister in the Prime Minister’s Department (Parliament & Law) Datuk Seri Wan Junaidi Tuanku Jaafar mentioned that this extension was approved by the Cabinet on 22 December 2021.

“The minister also stressed that this is to ensure the effective and progressive coordination of the implementation of Act 829 pursuant to the amendments made recently,” read the statement.

Amendments to Act 829 had been passed in the Dewan Rakyat on December 16, and in the Dewan Negara on December 22.

Part II of Act 829 involves contracts within the areas of construction work, professional services, lease or tenancy of non-residential immovable properties, event management, tourism in Malaysia, and religious pilgrimage.

The law, in Section 7 reads: “The inability of any party or parties to perform any contractual obligation arising from any of the categories of contracts specified in the Schedule to this Part due to the measures prescribed, made or taken under the Prevention and Control of Infectious Diseases Act 1988 [Act 342] to control or prevent the spread of Covid-19 shall not give rise to the other party or parties exercising his or their rights under the contract”.

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