Legal Updates for Feb - 2023
GFIT Issues Third Consultation Paper on Taxonomy for Green and Transition Activities for Singapore-Based FIs
On 15 February 2023, the Green Finance Industry Taskforce ("GFIT") issued the third consultation paper ("2023 Consultation Paper") on the taxonomy it has been developing for Singapore-based financial institutions to identify and classify green and transition activities. The key proposals in the 2023 Consultation Paper include: (i) the thresholds and technical screening criteria to classify economic activities as green, amber or red categories under the traffic light approach for five sectors; and (ii) Do No Significant Harm criteria. The consultation period for the 2023 Consultation Period will end on 15 March 2023, and GFIT intends to issue the final taxonomy by the first half of 2023.This Update provides a broad outline of the key proposals covered in the 2023 Consultation Paper 28 Feb 2023 | Singapore
New General Code of Practice of Personal Data Protection Issued under the Personal Data Protection Act 2010
Under the Personal Data Protection Act 2010 ("PDPA"), there are 13 specified classes of data users ("Specified Data Users") that are required to draw up binding Codes of Practice to set out data protection requirements that are tailored to their particular industries (e.g., Banking, Insurance, Education etc). However, there still remain a number of Specified Data Users that have yet to do so.
As such, the Personal Data Protection Commissioner ("Commissioner") recently issued the General Code of Practice of Personal Data Protection ("General COP"), which came into force on 15 December 2022, to apply to the classes of Specified Data Users that have yet to establish Data User Forums and to register their respective Codes of Practice with the Commissioner.
While the General COP is not binding upon other data users, it is recommended that other data users also refer to the individual provisions in the General COP, as it is reflective of the expectations of the Commissioner in relation to the minimum measures required to be implemented by data users pursuant to the PDPA.
This Update therefore seeks to provide a brief overview of the General COP and highlight key provisions set out in the General COP which data users should be aware of.
28 Feb 2023 | MalaysiaReciprocal Enforcement of Foreign Judgments Regime in Singapore to be Consolidated from 1 March 2023
Singapore, as a regional hub for dispute resolution, has been developing its framework for the reciprocal enforcement of foreign judgments. The reciprocal enforcement regime is now set to be consolidated under the Reciprocal Enforcement of Foreign Judgments Act ("REFJA"). The Commonwealth countries with which Singapore has reciprocal enforcement arrangements will be duly transferred to the REFJA from 1 March 2023.The transfer of Commonwealth countries to the REFJA will also serve to expand the scope of registrable judgments from the listed countries, providing greater efficiency for foreign litigants seeking to enforce their judgments in Singapore. This Update highlights the key features of this development. 28 Feb 2023 | Singapore
Singapore Moves Another Step Closer to Workplace Anti-Discrimination Legislation
Seeking to address how best to create a strong and robust system that will promote workplace fairness, the Tripartite Committee on Workplace Fairness (the "Committee") was formed in July 2021. The Committee released its interim report on 13 February 2023. The Committee’s interim report contains 20 recommendations to enhance workplace fairness. Notably, the Committee recommends that legislation be enacted to implement its recommendations to tackle workplace discrimination. It is proposed that the legislation will run in unison with the Tripartite Guidelines on Fair Employment Practices. Any feedback to the recommendations set out in the Committee’s interim report should be submitted by 13 March 2023.This Update outlines the recommendations made in the Committee’s interim report and considers the steps that employers should consider in order to remain fair employers. 22 Feb 2023 | Singapore
Nutri-Grade Requirements to be Extended to Freshly Prepared Beverages - Consultation on Proposed New Legislation
In 2022, Singapore introduced a system of Nutri-Grade measures which imposed mandatory nutrition labels and advertising prohibitions for designated beverages. While the measures currently apply only to beverages sold in Singapore in pre-packaged form and from non-customisable automated beverage dispensers, from end-2023, these requirements are set to be extended to freshly prepared beverages for sale in specified settings in Singapore. This would include bubble tea, freshly brewed coffee or tea, and freshly squeezed juices. Additional labelling requirements will also be introduced in respect of both existing designated beverages and freshly prepared beverages.To facilitate the new measures, the Ministry of Health and the Health Promotion Board have launched a consultation to seek feedback on the proposed new legislation under the Sale of Food Act 1973. Businesses involved in the production and sale of such beverages need to be aware of the proposed measures and how it may affect their operations, and should submit any relevant feedback before the consultation ends on 13 April 2023.
This Update provides a summary of the key changes under the new measures and the proposed new legislation. 21 Feb 2023 | Singapore
Rajah & Tann Singapore Sustainability Update: Potential Legal Recourses for Greenwashing Claims in Singapore
We are pleased to present you our Sustainability Update which shares insights from our Sustainability Partners and experts across sectors and domains on key environmental, social and governance ("ESG") developments and trends.In this issue, we explore briefly the potential legal recourses which are available to a person making a claim against greenwashing in Singapore. This is a developing area and we invite you to get in touch with our Partners in our Sustainability Practice who are ready to assist you with queries on greenwashing. 21 Feb 2023 | Singapore
ACRA/MAS/MOF Seek Comments On Legislative Amendments to Allow Virtual Meetings for Companies, VCCs and BTs
On 9 February 2023, the Accounting and Corporate Regulatory Authority, Ministry of Finance and Monetary Authority of Singapore jointly announced that they are conducting a public consultation to seek feedback on proposed changes to the Companies Act 1967, Variable Capital Companies Act 2018 and the Business Trusts Act 2004 (collectively, the "Acts"). The public consultation exercise will run from 9 to 20 February 2023.The key proposed changes to the Acts primarily aim to expressly clarify in the Acts that companies, variable capital companies ("VCCs") and business trusts ("BTs") have the option to conduct fully virtual or hybrid general meetings, and to ensure that the rights of the members of the companies and VCCs and unitholders of BTs to attend and participate in such general meetings are safeguarded. The proposed changes to the Acts are set out in the draft Companies, Business Trusts and Other Bodies (Miscellaneous Amendments) Bill 2023 ("draft Bill"). The proposed draft Bill is stated to come into effect on 1 July 2023.
This Update provides a summary of these key proposed changes. 20 Feb 2023 | Singapore
Personal Data Protection Act 2010 under the New Government: Updates to the Proposed Amendments in 2023
Since 2018, continuous efforts have been made by the Malaysian Government to review and update the Personal Data Protection Act 2010 (“PDPA”) in order to bring the PDPA in line with global data protection standards, and also to address issues arising from the emerging ways of using and processing personal data. However, the review process and the PDPA amendment bill have been delayed time and again, on account of the COVID-19 pandemic as well as multiple changes in the Government.
With the installation of a new Government, the new Minister of Communications and Digital, Fahmi Fadzil, is now tasked with overseeing the proposed amendments to the PDPA. Therefore, this Update seeks to provide a quick insight into the latest information available on the status of the proposed amendments to the PDPA under the new Government.
17 Feb 2023 | Malaysia
Introduction of Sales Tax on Low Value Goods on Online Marketplaces
Changes are being made to the Sales Tax Act 2018 in phases to impose sales tax on low value goods. The changes are effected pursuant to the Sales Tax (Amendment) Act 2022 and the relevant regulations and orders issued thereunder (with provisions effective from 1 January 2023 and 1 April 2023 respectively). This is in line with the announcement made by the Ministry of Finance in Budget 2022 to ensure a level playing field and fair treatment between taxable goods manufactured in Malaysia and imported goods, as local manufacturers are already being charged a 5% or 10% sales tax.
Low value goods are goods from outside Malaysia which have a sale value of not more than RM500 and are brought into Malaysia by land, sea or air. Pursuant to the Guide on Sales Tax on Low Value Goods issued by the Royal Malaysian Customs Department, the low value goods tax is mainly intended to implement sales tax on low value goods sold through online marketplaces. Therefore, these changes will heavily impact e-commerce businesses where low value goods are sold through an online marketplace and imported into Malaysia in the prescribed manner.
In this Update we provide a brief summary of the low value goods tax and highlight the relevance for e-commerce businesses.
17 Feb 2023 | MalaysiaMajor Changes in Law Related to Private Limited Companies
Wide-ranging amendments have been made to the Thai Civil and Commercial Code, which are intended to ease the administrative burden on private limited companies and provide more practical solutions to business issues. The amendments, which took effect on 7 February 2023, were set out in the Act amending the Civil and Commercial Code (No. 23) B.E. 2565 (2022), which was published in the Royal Gazette on 8 November 2022. This Update provides an overview of the key amendments.
17 Feb 2023 | ThailandResource Sustainability (Amendment) Bill Proposes Regulations to Reduce Packaging and Food Waste
On 6 February 2023, the Resource Sustainability (Amendment) Bill ("Bill") was tabled for First Reading in Parliament. The Bill seeks to amend the Resource Sustainability Act 2019 in these key areas:- For packaging waste: (i) require registered retailers (prescribed supermarkets, for a start) to collect a charge for each disposable carrier bag provided to customers; and (ii) provide for a beverage container return scheme; and
- For food waste: require (i) segregation and treatment of food waste generated in prescribed buildings (prescribed hotels, shopping malls, and industrial developments, etc); and (ii) reporting on the treatment of food waste.
16 Feb 2023 | Singapore
Government Implements New Measures on Buyers’ Stamp Duty
On 14 February 2023, as part of the Budget Statement for Budget 2023, the Minister for Finance, Lawrence Wong, announced the implementation of an increase in the Buyer's Stamp Duty ("BSD") rates for residential and non-residential properties "to enhance the progressivity of the BSD regime". The new measures have since taken effect from (and including) 15 February 2023.The measures are expected to affect 15% of residential properties and 60% of non-residential properties. In this Update, we provide a summary of the key changes to BSD rates in the new measures. 15 Feb 2023 | Singapore
Singapore Budget 2023: Moving Forward in a New Era
The Budget Statement for Budget 2023 was delivered on 14 February 2023. Following the lowering of the Disease Outbreak Response System Condition (DORSCON) level from yellow to green on 13 February 2023, Budget 2023 sets out a comprehensive range of measures to deal with the transition to a post-COVID-19 Singapore. This includes the strengthening of Singapore’s social compact, and addressing concerns about inflation and the higher cost of living in Singapore. At a glance, some key measures include:- Extra financial support to help Singaporeans cope with inflation and cushion the impact of the higher goods and services tax rate;
- S$3 billion enhancement to the Assurance Package, translating to a S$300 to S$650 increase in total cash payouts for each eligible Singaporean;
- S$30,000 increase in the Central Provident Fund ("CPF") housing grant for eligible families purchasing four-room or smaller resale units and S$10,000 for those purchasing five-room or larger flats;
- Raising the CPF monthly salary ceiling from S$6,000 to S$8,000 in 2026;
- The doubling of voluntary Government-paid paternity leave to four weeks for fathers of Singaporean children born on or after 1 January 2024; and
- An increase in the Government’s co-funding support under the Progressive Wage Credit Scheme.
The tax measures and changes announced are categorised as follows:
- Tax Implications on Corporations
- Tax Implications on Individuals
- Encouraging a Culture of Giving
- Increased Tax for Purchases of Higher-value Properties and Vehicles
In this Update, we discuss selected tax measures, changes, enhancements and extensions, and refinements.
15 Feb 2023 | Singapore
Winding Up Court Directions Given to the Liquidator Affecting Substantive Rights of Parties are Now Appealable
The role of the liquidator is to realise the assets of the company and from the sale proceeds, pay off creditors of the company. If a difficulty arises in the course of his administration of the winding up, the liquidator may apply to the winding up court for directions.
A decade ago, the Malaysian Federal Court (being the apex Court) held in Ooi Woon Chee & Anor v. Dato’ See Teow Chuan & Ors [2012] 2 MLJ 713 that such directions given by the winding up court to the liquidator were non-appealable on the ground that those directions were in the nature of advice only and were accordingly not a judgment or order.
Recently, the same issue (on the appealability of such directions) came up before the Federal Court in Tan Kim Chuan v. Tan Kim Tian & Ors and another appeal [2022] 6 MLJ 888, where the Federal Court clarified and qualified its abovesaid earlier decision made a decade ago, and held that such directions given by the winding up court to the liquidator are appealable only if those directions affect the substantive rights of the parties involved in the liquidation.
In this Update, we summarise the legal issues in this decision of the Federal Court and discuss its impact.
14 Feb 2023 | Malaysia
Measures to Mitigate the Economic Impact of COVID-19 and Assist in the Recovery of the Tourism Sector
In line with the intention of the Royal Government of Cambodia ("RGC") to mitigate the economic impact of COVID-19 and support the recovery of the tourism sector, the RGC issued press release No. 01 dated 30 January 2023 providing three key relief measures.
This Update provides a summary of the key relief measures.
08 Feb 2023 | CambodiaWhat is the Applicable Law to Determine Whether a Dispute is Arbitrable at the Pre-Award Stage?
When a party submits that a dispute is not arbitrable, an important threshold question arises: should the issue of arbitrability be considered under the law governing the arbitration agreement or the law of the seat of the arbitration? The distinction is vital as there is no global consensus on the exact scope of what constitutes non-arbitrable disputes.The Singapore Court of Appeal has answered this question in the landmark decision of Anupam Mittal v Westbridge Ventures II Investment Holdings [2023] SGCA 1, issued earlier this year. The Court adopted a "composite approach", which effectively requires the matter to be arbitrable under both the law of the arbitration agreement and the law of the seat. The court would first look to the law of the arbitration agreement to determine if the dispute is arbitrable. If the law of the arbitration agreement is foreign law, and the dispute is arbitrable under the foreign law, the court would then look to the law of the seat – a dispute that is not arbitrable under Singapore law as the law of the seat would also not be allowed to proceed.
This Update provides a summary of the Court of Appeal's decision and highlights the key holdings in the judgment. 08 Feb 2023 | Singapore
OJK Announced Guidelines to Implement Offerings Classified as Non-Public Offerings
As a follow-up to OJK Regulation No. 29/POJK.04/2021 on Offerings Classified as Non-Public Offering (“Regulation”), the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) has issued Circular Letter No. 33/SEOJK.04/2022 on Guidelines for Implementing Securities Offerings Classified as a Non-Public Offering (“Circular Letter”).
07 Feb 2023 | IndonesiaPublic Consultation on Proposed Intangibles Disclosure Framework
Intangible assets such as intellectual property and goodwill are important sources of competitive advantage and economic value. However, companies may face challenges in the valuation and reporting of intangible assets. The Accounting and Corporate Regulatory Authority and the Intellectual Property Office of Singapore have thus jointly issued a public consultation paper proposing an Intangibles Disclosure Framework ("Framework") to help businesses disclose and communicate their intangibles.The Framework outlines the key principles that an enterprise should follow when disclosing their intangibles in a report and provides guidance for enterprises on how they should disclose their intangibles under these principles. Enterprises with intangible assets should be aware of the principles set out in the proposed Framework and submit any feedback they may have by 28 February 2023, the closing date of the consultation. 07 Feb 2023 | Singapore