Legal Updates

Legal Updates for Aug - 2022

IMDA Proposes Enhanced Measures to Protect Against SMS Scams

Overview of Arbitral Proceedings in Cambodia

Cambodia established its first commercial arbitration centre, the National Commercial Arbitration Centre of Cambodia ("NCAC") in 2006, which then commenced operations in 2013. As of December 2020, NCAC has received 25 cases under its first arbitration rules adopted in 2014 ("2014 Rules"). 

In June 2021, NCAC amended the 2014 Rules. The new arbitration rules ("2021 Rules") consist of 9 chapters and 74 articles. In this article, we highlight the key stages of arbitration proceedings under the 2021 Rules as follows: 

1.       Commencement of arbitration;
2.       Interim stage;
3.       Hearings; and
4.       Issuance of arbitral award.

Visit Arbitration Asia for insights from our thought leaders across Asia concerning arbitration and other alternative dispute resolution mechanisms, ranging from legal and case law developments to market updates and many more.

Company Directors' Duties on Workplace Safety and Health

Cambodia’s New Law on Food Safety

The new Law on Food Safety ("Law") came into force on 8 June 2022 by virtue of Royal Kram No. NS/RKM/0622/006.Consisting of 11 Chapters and 43 Articles, the Law sets out the legal framework and mechanism to regulate safety, quality, sanitation relating to food production and food businesses. The term "food businesses" refers to any business activities, regardless of size, except for the sale of street food, that involves production, manufacture, preparation, treatment,​ packaging, transportation and storage of food, as well as for the provision of service or sales related to food, whether for profit or not. 

This Update highlights the key features of Cambodia’s new Law.

Indonesian Crypto Regulator Hits the Brake on the Issuance of Crypto Exchanger Permits

It is no longer a secret that the global crypto industry is experiencing what some commentators have dubbed a "Crypto Winter", a phenomenon where crypto asset prices drop and stay low for a prolonged period. Indonesia is not an exception. Recently, we heard of one registered Indonesian crypto exchanger (referred to as a physical crypto asset broker (pedagang fisik aset kripto) under Indonesian law) that was experiencing a shortage of liquidity when the crypto market started to turn, which led to such crypto exchanger temporarily freezing its users’ wallet.

In light of this recent situation, the Indonesian crypto regulator (the Commodity Futures Trading Regulatory Agency or "Bappebti") has introduced a moratorium on the registration of new crypto exchanger candidates under Circular Letter No. 208/BAPPEBTI/SE/08/2022 ("Circular"), issued by the Head of Bappebti on 15 August 2022.

OJK Tightens Supervision in New Peer-to-Peer Lending Regulation

In July 2022, Indonesia’s Financial Services Authority or OJK (Otoritas Jasa Keuangan) introduced a new regulation on peer-to-peer or P2P lending designed to both encourage optimal and healthy growth of the P2P lending industry and accommodate OJK’s needs for effective and efficient supervision.

Previously, P2P lending in Indonesia was primarily regulated under OJK Regulation No. 77/POJK.01/2016 ("Previous Regulation"). Many view the Previous Regulation as inadequate, especially in light of the rapid growth of P2P lending in Indonesia, which unfortunately also led to an increase in the number of illegal P2P lenders. As of October 2021, OJK had identified more than 100 illegal digital P2P lenders.

The new regulation, OJK Regulation No. 10/POJK.05/2022 on Information Technology-Based Collective Financing Services ("New Regulation"), enacted on 4 July 2022, introduced several new concepts in the P2P lending sector, enhanced the provisions on OJK's supervision through market conduct, and revoked several provisions in the Previous Regulation on the lending limit, paid-up capital and equity minimum requirements, and licensing process. Despite revoking these provisions in the Previous Regulation, clients should note that the implementing regulation for the Previous Regulation, namely OJK Circular Letter No. 18/SEOJK.02/2017, remains valid.

This Update takes a closer look at the changes introduced by the New Regulation.

MAS Sets Out Enhanced Disclosure and Reporting Guidelines for Retail ESG Funds

Court Determines When It Will Allow the Transfer of Shares in Insolvent Company

Singapore High Court Determines: How Final is a "Final Arbitral Award"?

The finality of an arbitral award is a crucial issue. After all, no party desires to incur further legal costs and expend more time on an outcome that may be re-litigated or otherwise disturbed.

Accordingly, when an arbitrator issues an arbitral award with conditional reliefs, but bearing the title "Final Award", are the parties entitled to rely on it as being final? Has the arbitrator been rendered functus officio (that is, no longer in possession of further authority after completing his/her intended function), or may the arbitrator render a further award?

In York International Pte Ltd v Voltas Ltd [2022] SGHC 153 ("York"), the plaintiff applied under section 21(9) of the Arbitration Act 2001 ("Act") for the Court's decision that the Arbitrator ("Arbitrator") was functus officio after issuing an arbitral award that included certain conditional reliefs. Finding in favour of the plaintiff, the Singapore High Court found that the arbitral award was indeed final and the Arbitrator was functus officio. In coming to its decision, the Court considered the following issues:

1. Whether the plaintiff's application fell within section 21(9) of the Act or was otherwise barred;
2. If the plaintiff's application was not to be barred, whether the Arbitrator no longer had jurisdiction after the issuance of the award; and
3. Whether the defendant's argument that it would have no other recourse to resolve the outstanding issues had any bearing on the Court's decision regarding the arbitrator's jurisdiction to issue a further award.

The plaintiff was successfully represented by Rajah & Tann Singapore's Ng Kim Beng (Deputy Managing Partner; Partner, International Arbitration) and Benny Santoso (Senior Associate, International Arbitration).

Visit Arbitration Asia for insights from our thought leaders across Asia concerning arbitration and other alternative dispute resolution mechanisms, ranging from legal and case law developments to market updates and many more.

Land Betterment Charge Act Takes Effect on 1 August 2022 to Replace Development Charge and Differential Premium

Draft Decree to Update Vietnam’s Special Preferential Import Tariff Schedule for 2022-2027 under the ATIGA to Come into Operation on 1 December 2022

On 8 March 2022, the Vietnamese Government issued Decision 29/NQ-CP approving the Ministry of Finance’s ("MOF") submission dated 24 January 2022^[1], to update Vietnam’s special preferential import tariff schedule for the implementation of the ASEAN Trade in Goods Agreement ("ATIGA") in the period 2022 to 2027 ("AHTN 2022").

MOF disclosed that under the AHTN 2022, several major product classifications will be subject to a change in their tax rate from those set out in the AHTN 2017 (the applicable tariff schedule for the period 2018 to 2022). For instance, preparations from meat, fish or crustaceans, mollusks or other aquatic invertebrates, and other edible preparations will be subject to a change in their tax rate under AHTN 2022.

Latest Update on the Proposed Amendments to the Personal Data Protection Act 2010

In 2019, the Department of Personal Data Protection ("JPDP") issued the Public Consultation Paper on the Review of the Personal Data Protection Act 2010 ("PDPA") (“Public Consultation Paper”), containing 22 proposed amendments to the PDPA. In our previous Client Update, we provided an overview of the proposed amendments as set forth by the JPDP in the Public Consultation Paper. As a follow-up to the said Update, we wish to highlight further updates on the proposed amendments under the Public Consultation Paper, pursuant to a recent conference organised and conducted by the JPDP, where representatives of the JPDP have stated that the JPDP has further shortlisted the proposed amendments to the PDPA. The shortlisted proposed amendments have reportedly been submitted to the Attorney General Chambers of Malaysia for their further review.

Pursuant to the updates provided by the JPDP during the conference, this Update seeks to provide a brief summary as to the shortlisted/finalised amendments to the PDPA, which would be relevant to data users in order to prepare for the upcoming amendments to the PDPA.

The Government of Malaysia Launches the Malaysia Digital Initiative

On 4 July 2022, the Government of Malaysia launched a new digital economy initiative, Malaysia Digital ("Malaysia Digital Initiative"), which is intended to succeed and replace the 25-year-old Multimedia Super Corridor agenda to become the primary national strategic initiative on digital economy in Malaysia. This initiative was established by the Ministry of Communications and Multimedia, through its digital economy agency, the Malaysian Digital Economy Corporation ("MDEC"). The Government of Malaysia, through MDEC, will award Malaysia Digital Status to eligible companies that participate in and undertake any of the prescribed activities under the Malaysia Digital Initiative. Malaysia Digital Status companies will be entitled to a set of incentives, rights and privileges from the Government, subject to necessary approvals and compliance to applicable laws and regulations. 

In light of the introduction of this new initiative, we seek to provide you with a brief overview of the Malaysia Digital Initiative as well as the Malaysia Digital Status offering.