Legal Updates

Legal Updates for Feb - 2021

SERC Issues Prakas on Reporting Obligations and Request for Approval of Central Counterparties and Derivatives Brokers

On 18 January 2021, the Securities and Exchange Regulator of Cambodia ("SERC"), previously known as the Securities and Exchange Commission of Cambodia (SECC), issued a new Prakas No. 001/21 SECC/P on the Obligations to Provide Reports, Notify, and Request for Approval of Central Counterparties and Derivatives Brokers ("New Prakas").

The New Prakas sets out the following obligations of central counterparties and derivatives brokers in accordance with the Law on the Issuance and Trading of Non-Government Securities and the Sub-Decree in relation to this, as well as relevant regulations:

• the reporting obligations;
• the changes or occurrences which require notification to SERC; and
• the events or circumstances which require SERC’s prior written approval.

The New Prakas is issued to monitor and supervise the central counterparties’ and derivative brokers’ observance and compliance with such obligations and to ensure transparency, accountability and good order among the stakeholders. The New Prakas applies to the central counterparties and derivatives brokers who have obtained licences / permits from SERC.

The Malaysiakini Decision: Liability of Online Intermediary Platforms for Third-Party Content

On 19 February 2021, the Federal Court in the case of Peguam Negara Malaysia v Mkini Dotcom Sdn Bhd & Another (Case No. 08(L)-4-06/2020) held in a 6-1 decision that Mkini Dot Com Sdn Bhd, the owner and operator of the Malaysian online news portal ‘Malaysiakini’ ("Malaysiakini"), was liable for contempt of court in relation to third-party comments that were posted on Malaysiakini’s website. The majority decision found Malaysiakini responsible for the third-party comments on its website based on section 114A(1) of the Evidence Act 1950 ("EA 1950"), which raises the legal presumption that Malaysiakini, as the news portal owner, was the publisher of the said comments. The editor of Malaysiakini, however, was found not guilty of publication of the comments. The Federal Court’s decision may have serious ramifications on the liability of online intermediary platforms for third party content moving forward. This Update therefore seeks to provide a brief analysis on the summary grounds of decision for both the majority and minority decisions of the Federal Court, pending the issuance of the full grounds of judgment.

Sub-Decree on Construction Permits

On 30 December 2020, the Royal Government of Cambodia issued Sub-Decree No. 224 on Construction Permit ("Sub-Decree No. 224") aimed at determining the authority, conditions, and procedures for the issuance of construction permits, construction repair permits, demolition permits, construction site opening permits, and extension permits. Sub-Decree No. 224 replaces and repeals Sub-Decree No. 86 on Construction Permit dated 19 December 1997.

Sub-Decree No. 224 governs all types of construction except those that are otherwise set out in separate regulations.

OMNIBUS LAW 2020: The Will to Comply: Government Highlights Compliance in Competition Law Violations

One of the topics that were left open-ended under the Omnibus Law was the removal of the cap on administrative fine and criminal sanctions for violations of the Competition Law (Law No. 5 of 1999). This was discussed in AHP’s client update in October 2020. In that Client Update, it was mentioned that a new cap is likely to be introduced. The newly issued government regulation for the Omnibus Law on competition, Government Regulation No. 44 of 2021 on the Implementation of Prohibition of Monopolistic Practices and Unfair Business Competition, has confirmed this.

OMNIBUS LAW 2020: The Will to Comply: Government Highlights Compliance in Competition Law Violations

One of the topics that were left open-ended under the Omnibus Law was the removal of the cap on administrative fine and criminal sanctions for violations of the Competition Law (Law No. 5 of 1999). This was discussed in AHP’s client update in October 2020. In that Client Update, it was mentioned that a new cap is likely to be introduced. The newly issued government regulation for the Omnibus Law on competition, Government Regulation No. 44 of 2021 on the Implementation of Prohibition of Monopolistic Practices and Unfair Business Competition, has confirmed this.

OMNIBUS LAW 2020: The Will to Comply: Government Highlights Compliance in Competition Law Violations

One of the topics that were left open-ended under the Omnibus Law was the removal of the cap on administrative fine and criminal sanctions for violations of the Competition Law (Law No. 5 of 1999). This was discussed in AHP’s client update in October 2020. In that Client Update, it was mentioned that a new cap is likely to be introduced. The newly issued government regulation for the Omnibus Law on competition, Government Regulation No. 44 of 2021 on the Implementation of Prohibition of Monopolistic Practices and Unfair Business Competition, has confirmed this.

GFIT Handbook for Implementing Environmental Risk Management for Banks, Insurers, Asset Managers

1. all banks, merchant banks and finance companies;
2. insurers (including reinsurers); and
3. fund management companies and real estate investment trust managers.

This Update gives an overview of selected key implementation recommendations described in the Handbook, focusing on the following main areas:

• Governance and Strategy to ensure, among other things, board accountability and oversight;
• Proper risk management to entrench environmental and climate-related financial risk in FIs' risk management and decision-making processes; and
• Effective environmental and climate-related financial disclosures.

Guide to Conducting Applications for Moratoria Pursuant to Schemes of Arrangement

IDX Pushes for Increased Transparency and Dissemination of Information

Recognising the need to synergise the various rules in the capital markets sector, the Board of Directors of the Indonesia Stock Exchange (“IDX”) recently issued a decree to amend IDX Rule No. I-E on Obligation of Information Submission. The rule on information submission was issued in 2004, and in light of other newer regulations in the stock exchange, amendments to this rule are certainly overdue.

The new rule contains several notable elements, which are introduced to ensure that the public can receive information quickly while protecting issuers from burdensome obligations.

IDX Pushes for Increased Transparency and Dissemination of Information

Recognising the need to synergise the various rules in the capital markets sector, the Board of Directors of the Indonesia Stock Exchange (“IDX”) recently issued a decree to amend IDX Rule No. I-E on Obligation of Information Submission. The rule on information submission was issued in 2004, and in light of other newer regulations in the stock exchange, amendments to this rule are certainly overdue.

The new rule contains several notable elements, which are introduced to ensure that the public can receive information quickly while protecting issuers from burdensome obligations.

IDX Pushes for Increased Transparency and Dissemination of Information

Recognising the need to synergise the various rules in the capital markets sector, the Board of Directors of the Indonesia Stock Exchange (“IDX”) recently issued a decree to amend IDX Rule No. I-E on Obligation of Information Submission. The rule on information submission was issued in 2004, and in light of other newer regulations in the stock exchange, amendments to this rule are certainly overdue.

The new rule contains several notable elements, which are introduced to ensure that the public can receive information quickly while protecting issuers from burdensome obligations.

Budget Speech 2021 – Emerging Stronger Together

• The COVID-19 Resilience Package to reopen Singapore safely and sustain the momentum of its recovery;
• The Household Support Package for families, with greater support for families in need;
• Singapore's investments in economic and workforce transformation to emerge stronger; and
• The Singapore Green Plan 2030 to enhance sustainability and deal with climate change.

• Extending Budget 2020 Temporary Tax Measures to Support Businesses;
• Updating Singapore's Tax Regime as the Digital Economy Grows;
• Maintaining the Competitiveness and Resilience of Singapore's Tax System;
• Emerging Stronger as a Community: Encouraging Philanthropy and Volunteerism;
• Encouraging Early Adoption of Electric Vehicles; and
• Environmental Sustainability.

Sustainability Financing: Taxonomy Proposed for Singapore-based Financial Institutions to Identify "Green" Activities

• Whether there is a need for Singapore to have its own taxonomy;
• The four environmental objectives for the taxonomy, namely: (1) climate change mitigation; (2) climate change adaptation; (3) protection of biodiversity; and (4) promotion of resource resilience;
• The selection of the economic sectors that are covered by the taxonomy;
• The proposed "traffic light" classification system for activities within the selected economic sectors by grouping them into three classifications, namely, "green" for activities that are clearly aligned with the environmental objectives of the taxonomy; "yellow" for activities with quantifiable and time-bound pathway towards either green or significant de-carbonisation that will contribute to the objectives of the taxonomy; and "red" for activities that are inconsistent with the environmental objectives of the taxonomy; and
• The treatment of transition activities in the taxonomy.

Licensing Framework for Digital Banks

The Licensing Framework for Digital Banks policy document ("Licensing Framework") was issued by Bank Negara Malaysia ("BNM") on 31 December 2020, together with a set of Frequently Asked Questions ("FAQ"). The Licensing Framework came into effect immediately upon issuance, and interested applicants have until 30 June 2021 to submit the licence applications to carry out digital banking business. BNM targets to notify successful applicants (limited to 5 licences) in the first quarter of 2022.

This Update discusses in more detail the application criteria and procedures by way of an infographic. If you have any queries or concerns, please free to reach out to our team who would be delighted to assist.

State of Emergency in Myanmar – Two Weeks On

Guideline on Unfair Trade Practices of Online Food Delivery Platforms

The COVID-19 pandemic in Thailand has seen escalating consumer demand for the use of food delivery digital platforms ("Online Food Delivery Platforms"), as well as an increase in complaints by restaurant operators regarding the unfair trade practices adopted by certain Online Food Delivery Platforms.

The Trade Competition Commission has issued the Notification of the Trade Competition Commission regarding the Guideline of Considering Unfair Trade Practices between Online Food Delivery Service Providers and Restaurant Operators ("Notification"). The Notification, which took effect on 23 December 2020, provides a guideline of the practices which may be considered as causing damage to restaurant operators in breach of Section 57 of the Trade Competition Act B.E. 2550 (2017), referred to as the "unfair trade practices" provision. This Update highlights the key elements of the Notification.

Wrongful Dismissal Arising from Terminating Employees with Cause – Cautionary Note for Employers

A New Year, A New Registration Regime for Private Electronic System Operators

2019 was a pivotal year in Indonesia's digital business landscape as the government issued, among others, Government Regulation No. 71 of 2019 on Electronic Systems and Transactions (“2019 Regulation”). The 2019 Regulation mandates all electronic system operators to register with the Ministry of Communications and Informatics ("Ministry").

The 2019 Regulation only contains the broad principles on the registration obligation, but mandates that this obligation be further regulated in a Ministerial-level regulation. As a follow-up to such mandate, towards the end of 2020, the Ministry issued a new regulation, Minister of Communications and Informatics Regulation No. 5 of 2020 on the Operation of Private Electronic System Operators (“New Regulation”), to provide more details on the registration obligation, specifically for private electronic system operators.

A New Year, A New Registration Regime for Private Electronic System Operators

2019 was a pivotal year in Indonesia's digital business landscape as the government issued, among others, Government Regulation No. 71 of 2019 on Electronic Systems and Transactions (“2019 Regulation”). The 2019 Regulation mandates all electronic system operators to register with the Ministry of Communications and Informatics ("Ministry").

The 2019 Regulation only contains the broad principles on the registration obligation, but mandates that this obligation be further regulated in a Ministerial-level regulation. As a follow-up to such mandate, towards the end of 2020, the Ministry issued a new regulation, Minister of Communications and Informatics Regulation No. 5 of 2020 on the Operation of Private Electronic System Operators (“New Regulation”), to provide more details on the registration obligation, specifically for private electronic system operators.

Singapore Accedes to Apostille Convention for Facilitation of Cross-Border Use of Public Documents

Public Consultation on the Proposed Copyright Bill

MLVT Issues Notification on Seniority Payment (i) Prior to 2019 and (ii) 2020 and 2021

MLVT has issued Notification No. 003/21 dated 21 January 2021 on the Payment of the Back Pay of Seniority Payment prior to 2019 and the Seniority Payment for 2020 and 2021 for Manufacturing Factories/Enterprises ("Notification").

According to the Notification, the payment of back pay of seniority payment prior to 2019 and seniority payment for 2020 and 2021 for manufacturing factories/enterprises shall resume in 2021.

Implementation of Online Systems for Labour and Vocational Training Related Public Services

MLVT has issued Prakas No. 430/20 MLVT/Pr.K.CBN on the Implementation of Labour and Vocational Training Related Public Services via Online Systems ("Prakas"). According to the Prakas, the online systems were launched to strengthen the quality and effectiveness of public services, and foster transparency and accountability in the public sector.

MLVT Issues Two Prakas on Physical Examination Requirements and Provision of Health Check Services for Cambodian Employees

On 31 December 2020, MLVT issued two sets of Prakas, namely Prakas No. 429/20 on Physical Examination of Cambodian Employees ("Prakas No. 429") and Prakas No. 433/20 on the Agreement between Department of Occupational, Safety, and Health of MLVT and Health Facilities in order to Provide Health Check Services for Cambodian Employees (“Prakas No. 433"). Prakas No. 429 mandates employees to take physical examination before they can start their work. Prakas No. 433 sets out the requirements that health facilities must meet before they can provide health check services to Cambodian employees.

SEC Issues Beneficial Ownership Transparency Guidelines

Beginning 27 January 2021, all nominee directors/trustees, nominee shareholders, incorporators/applicants for incorporation, and all concerned corporations subject to the supervision and jurisdiction of the Securities and Exchange Commission (“SEC”) shall comply with the guidelines provided in Memorandum Circular No. 1, series of 2021 to prevent the misuse of corporations for illicit activities through measures designed to promote transparency of beneficial ownership. For purposes of these guidelines, a beneficial owner is defined as natural person/s who ultimately owns, controls, or exercises ultimate effective control over the corporation.

Amendments to the Personal Data Protection Act to Take Effect in Phases Starting from 1 February 2021

New Law on Government Securities 2020

On 26 December 2020, the Law on Government Securities was promulgated via Royal Kram No. NS.RK.0220.040 ("New Law"). The New Law abrogated the Law on Government Securities promulgated through Royal Kram No. NS.RK.0107.001 dated 10 January 2007.

The New Law aims to provide a general framework to: (i) manage the issuance and trading of government securities; (ii) provide a transparent, accountable, effective, and efficient management of government securities; and (iii) ensure sustainable management of public debt. The New Law covers the issuance, trading and management of government securities both within and outside of Cambodia.

This Update provides an overview of the key features of the New Law.

Simplified Insolvency Programme in Effect from 29 January 2021

State of Emergency in Myanmar – Answering Your Pressing Questions

The military-nominated First Vice President U Myint Swe, who is currently serving as the acting President, has declared a state of emergency for one year commencing from 1 February 2021 ("Declaration"), pursuant to Article 417 of the Myanmar Constitution 2008. The Declaration was issued after the military detained government leaders including the State Counsellor Daw Aung San Suu Kyi, President U Win Myint and other senior government officials from the National League for Democracy on early morning of 1 February 2021.

In this Update, we answer some of the frequently asked questions regarding the state of emergency in Myanmar, including the current leadership situation, movement/border controls, essential utilities and the state of protests.

Congress Authorized the President to Expedite the Processing and Issuance of Permits, Licenses, and Certifications

On 23 December 2020, President Rodrigo R. Duterte signed into law Republic Act No. 11517 known as An Act Authorizing the President to Expedite the Processing and Issuance of National and Local Permits, Licenses and Certifications in Times of National Emergency (“RA No. 11517”). RA No. 11517 covers all agencies of the executive branch, government instrumentalities, government-owned and controlled corporations, and local government units.

State of Emergency in Myanmar – Answering Your Pressing Questions

Regulating How We Pay, Bank Indonesia Issues New Rule on Payment System

At the end of 2020, Indonesia's central bank, Bank Indonesia ("BI") issued a regulation on the payment system, BI Regulation No. 22/23/PBI/2020 (“Regulation”), which comes into effect on 1 July 2021. The Regulation was issued as part of BI's initiative to reform Indonesia's payment system regime as stated in BI's 2025 Payment System Blueprint. 

Regulating How We Pay, Bank Indonesia Issues New Rule on Payment System

At the end of 2020, Indonesia's central bank, Bank Indonesia ("BI") issued a regulation on the payment system, BI Regulation No. 22/23/PBI/2020 (“Regulation”), which comes into effect on 1 July 2021. The Regulation was issued as part of BI's initiative to reform Indonesia's payment system regime as stated in BI's 2025 Payment System Blueprint. 

Regulating How We Pay, Bank Indonesia Issues New Rule on Payment System

At the end of 2020, Indonesia's central bank, Bank Indonesia ("BI") issued a regulation on the payment system, BI Regulation No. 22/23/PBI/2020 (“Regulation”), which comes into effect on 1 July 2021. The Regulation was issued as part of BI's initiative to reform Indonesia's payment system regime as stated in BI's 2025 Payment System Blueprint. 

Revised Rules and Regulations for the Issuance of Employment Permits to Foreign Nationals

The Department of Labor and Employment (DOLE) released the new guidelines for the issuance of Alien Employment Permit (“AEP”) and related certifications on 6 January 2021 through Department Order No. 221-21 (“Revised AEP Rules”).

The Revised AEP Rules provide for new guidelines for filing dates, processing time, permit fees, penalties, documentary requirements, and employers’ duties, among others. The AEP is one of the permits that must be secured by foreign nationals to legally work in the Philippines. This Update discusses the key changes in the application for AEP.

Data Management for Businesses: Launch of ASEAN Data Management Framework and Model Clauses on Data Transfer

1. The DMF provides a step by step guide for businesses to put in place a data management system, which includes data governance structures and safeguards.
2. The MCCs are template contractual terms that may be included in agreements between businesses transferring personal data to each other across borders.

2021 Technology Risk Management Guidelines: Enhanced Requirements on Financial Institutions Concerning Technology Risk Governance and Security Controls