Legal Updates

Legal Updates for May - 2023

Key Issues in Opposing a Winding Up Application: Standing of Shareholders and the Basis of Abuse of Process

Power Development Plan VIII

On 15 May 2023, the Prime Minister of Vietnam issued Decision No. 500/QD-TTg approving the National power development plan for the period between 2021 and 2030, and setting out the vision for 2050 ("PDP VIII"). PDP VIII takes effect from the issuing date and serves as the national master plan for the development not only of the energy sector but also the country's economy in general. It creates the framework for investments and introduces significant changes to the existing regulations for the energy industry in Vietnam. PDP VIII sets out the issues to take note of in relation to green energy transition, clean energy and reduction of CO2 emitting power sources while aiming for a total power capacity to remain at about 400,000 MW. 

This Update summarises the key features of PDP VIII.

柬埔寨的新税法

新《税法》于2023年5月16日根据NS/RKM/0523/004号皇家法令紧急颁布（"《税法》"），因此从2023年5月17日起生效。《税法》废除了1997年2月24日的旧税法及其2003年3月31日的修正案。在本法律资讯中，我们重点介绍《税法》的主要特点。

Amendments to OTC Derivatives Reporting Regime Expected to Commence in Oct 2024

• Adoption of the sets of Technical Guidance;
• Changes to the reportable data fields under the SF(RDC)R, including UTI, UPI, and CDE;
• Implementation timeline of revised requirements; and
• Adoption of the ISO 20022 XML message format for OTC derivatives reporting to the trade repository

On 16 May 2023, MAS shared the close-to-final revised SF(RDC)R and the Guidelines to the SF(RDC)R.

This Update provides a high-level outline of the key proposed amendments to the OTC derivatives reporting regime which are expected to commence in October 2024.

Abrogation of Prakas No. 087 on Land Development

On 19 May 2023, the Ministry of Land Management, Urban Planning and Construction issued Prakas No. 083 on the Abrogation of Prakas No. 087 on Land Development to effectively abrogate Prakas No. 087 on Land Development dated 11 May 2018 ("Prakas No. 087"). Land development permits and the relevant requirements and processes in relation thereof as provided for under Prakas No. 087 are no longer imposed.

Managing Greenwashing Risks: A Southeast Asian Lens

As governments, corporates and individuals double down on efforts on their sustainability and environmental, social and governance (ESG) agenda, there are emerging concerns of "greenwashing" and whether products and services labelled as "green" or "sustainable" are indeed so. What exactly is "greenwashing" and are there legal and regulatory frameworks in place to deal with this?

In this Guide, we aim to provide you with the state of play in the greenwashing legal landscape from a Southeast Asian perspective. Each Country Chapter provides a summary of the existing laws and regulations in each of the nine Southeast Asia jurisdictions that are available for enforcing against greenwashing, as well as some of their key regulators' approaches and initiatives to set clear and enforceable standards on green claims, green credentials, green products or green investments.

Managing Greenwashing Risks: A Southeast Asian Lens

As governments, corporates and individuals double down on efforts on their sustainability and environmental, social and governance (ESG) agenda, there are emerging concerns of "greenwashing" and whether products and services labelled as "green" or "sustainable" are indeed so. What exactly is "greenwashing" and are there legal and regulatory frameworks in place to deal with this?

In this Guide, we aim to provide you with the state of play in the greenwashing legal landscape from a Southeast Asian perspective. Each Country Chapter provides a summary of the existing laws and regulations in each of the nine Southeast Asia jurisdictions that are available for enforcing against greenwashing, as well as some of their key regulators' approaches and initiatives to set clear and enforceable standards on green claims, green credentials, green products or green investments.

Managing Greenwashing Risks: A Southeast Asian Lens

As governments, corporates and individuals double down on efforts on their sustainability and environmental, social and governance (ESG) agenda, there are emerging concerns of "greenwashing" and whether products and services labelled as "green" or "sustainable" are indeed so. What exactly is "greenwashing" and are there legal and regulatory frameworks in place to deal with this?

In this Guide, we aim to provide you with the state of play in the greenwashing legal landscape from a Southeast Asian perspective. Each Country Chapter provides a summary of the existing laws and regulations in each of the nine Southeast Asia jurisdictions that are available for enforcing against greenwashing, as well as some of their key regulators' approaches and initiatives to set clear and enforceable standards on green claims, green credentials, green products or green investments.

Managing Greenwashing Risks: A Southeast Asian Lens

As governments, corporates and individuals double down on efforts on their sustainability and environmental, social and governance (ESG) agenda, there are emerging concerns of "greenwashing" and whether products and services labelled as "green" or "sustainable" are indeed so. What exactly is "greenwashing" and are there legal and regulatory frameworks in place to deal with this?

In this Guide, we aim to provide you with the state of play in the greenwashing legal landscape from a Southeast Asian perspective. Each Country Chapter provides a summary of the existing laws and regulations in each of the nine Southeast Asia jurisdictions that are available for enforcing against greenwashing, as well as some of their key regulators' approaches and initiatives to set clear and enforceable standards on green claims, green credentials, green products or green investments.

Managing Greenwashing Risks: A Southeast Asian Lens

As governments, corporates and individuals double down on efforts on their sustainability and environmental, social and governance (ESG) agenda, there are emerging concerns of "greenwashing" and whether products and services labelled as "green" or "sustainable" are indeed so. What exactly is "greenwashing" and are there legal and regulatory frameworks in place to deal with this?

In this Guide, we aim to provide you with the state of play in the greenwashing legal landscape from a Southeast Asian perspective. Each Country Chapter provides a summary of the existing laws and regulations in each of the nine Southeast Asia jurisdictions that are available for enforcing against greenwashing, as well as some of their key regulators' approaches and initiatives to set clear and enforceable standards on green claims, green credentials, green products or green investments.

Managing Greenwashing Risks: A Southeast Asian Lens

Managing Greenwashing Risks: A Southeast Asian Lens

As governments, corporates and individuals double down on efforts on their sustainability and environmental, social and governance (ESG) agenda, there are emerging concerns of "greenwashing" and whether products and services labelled as "green" or "sustainable" are indeed so. What exactly is "greenwashing" and are there legal and regulatory frameworks in place to deal with this?

In this Guide, we aim to provide you with the state of play in the greenwashing legal landscape from a Southeast Asian perspective. Each Country Chapter provides a summary of the existing laws and regulations in each of the nine Southeast Asia jurisdictions that are available for enforcing against greenwashing, as well as some of their key regulators' approaches and initiatives to set clear and enforceable standards on green claims, green credentials, green products or green investments.

Managing Greenwashing Risks: A Southeast Asian Lens

As governments, corporates and individuals double down on efforts on their sustainability and environmental, social and governance (ESG) agenda, there are emerging concerns of "greenwashing" and whether products and services labelled as "green" or "sustainable" are indeed so. What exactly is "greenwashing" and are there legal and regulatory frameworks in place to deal with this?

In this Guide, we aim to provide you with the state of play in the greenwashing legal landscape from a Southeast Asian perspective. Each Country Chapter provides a summary of the existing laws and regulations in each of the nine Southeast Asia jurisdictions that are available for enforcing against greenwashing, as well as some of their key regulators' approaches and initiatives to set clear and enforceable standards on green claims, green credentials, green products or green investments.

Resolving Construction Disputes through Dispute Adjudication Boards under Indonesian Law

Dispute adjudication boards ("DAB") are increasingly used to resolve disputes over international construction projects. Typically, DAB procedure is not prescribed by laws and/or regulations. It is usually the parties to the dispute that will agree on the applicable rules and procedures for the DAB, which the DAB will then follow. However, laws and regulations on DAB procedure are often enacted where government procurement is concerned.

Indonesia has taken a different approach to DAB procedure. On 21 April 2021, the Minister of Public Works and Housing ("MOPWH") issued MOPWH Regulation No. 11 of 2021 regarding the Procedure and Technical Guidelines for Construction Dispute Adjudication Board ("Regulation 11/2021"). Regulation 11/2021 regulates many aspects of DAB use and procedure. While the name suggests that it is a technical guideline, Regulation 11/2021 is in fact binding in nature, making it relevant to construction disputants.

Regulation 11/2021 demonstrates that the use of DAB is highly regulated in Indonesia. Parties with business activities in the construction industry will need to be aware of Regulation 11/2021 and the obligations imposed. This article will examine Regulation 11/2021 to provide a clear picture on how the Indonesian Government regulates the use of DAB.

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. 

BUMN Omnibus Regulations Highlights Special Assignment and Environmental Social Responsibility Programs

The Minister of State-Owned Enterprises (“Minister”) issued the BUMN Omnibus Regulations at the end of March 2023, which consolidated and integrated over 45 ministry-level regulations. The Ministry’s aim in issuing the BUMN Omnibus Regulations is to synchronise the regulations pertaining to state-owned enterprises, which will support the integrated and sustainable management of state-owned enterprises.

Cambodia's New Law on Taxation

The new Law on Taxation was promulgated on 16 May 2023 by virtue of Royal Kram No. NS/RKM/0523/004 ("Law on Taxation") on an urgent basis and therefore has come into force from 17 May 2023. The Law on Taxation abrogates the old law on taxation dated 24 February 1997 and its amendment dated 31 March 2003. In this Update, we highlight key features of the Law on Taxation.

Reiterating the Procedural and Substantive Requirements for a Moratorium for Schemes of Arrangement

Towards the Harmonised Service of Documents Abroad - Singapore Accedes to the Hague Service Convention

MAS Proposes Amendments to Subsidiary Legislation to Operationalise Revisions to Payment Services Act

China Issues Draft Administrative Measures for Generative Artificial Intelligence Services

Global interest in Generative AI technologies has increased tremendously in recent months, given the emergence of ChatGPT (followed by similar technologies). While these technologies will no doubt continue to develop and become more sophisticated over time, they have already demonstrated the potential to greatly enhance our efficiency and productivity. However, as with any new technology, there are also concerns about their impact on society and the need for responsible use and regulation.

The proliferation of such Generative AI technologies has therefore attracted the attention of Chinese regulators. On 11 April 2023, the Cyberspace Administration of China issued the Administrative Measures for Generative Artificial Intelligence Services (Draft for Comment) (生成式人工智能服务管理办法(征求意见稿) for public comments. This Update will provide an overview of these Draft Measures and their potential impact on Service Providers providing Generative AI services in China.

New Regulations on Investigation and Recall of Unsafe or Non-compliant Foods

On 6 January 2023, the Royal Government of Cambodia adopted the Sub-Decree No. 13 ANKr.BK on Conditions, Formalities, and Procedures of the Investigation and Foods Recall ("Sub-Decree"), aiming to protect and prevent negative impact on consumers' health and benefits. To crystalise the implementation process of the Sub-Decree, the Ministry of Commerce issued the Prakas No. 080 on Form and Formality to Recall Unsafe Foods or Foods Non-compliant with Technical Foods Regulations ("Prakas"), which came into force on 22 February 2023. This Update highlights the key features of the Sub-Decree and the Prakas.

How KPPU’S New Guidelines Use Data and Quantitative Approach to Enforce Antitrust Measures

This year, the Indonesia Competition Commission (“KPPU”) has made a series of measures to improve the country’s competition enforcement by issuing new regulations and guidelines. Most recently, the KPPU issued three new guidelines that will play a significant role in the handling of competition cases.

These guidelines, which were issued between December 2022 and February 2023, pertains to:

1. Updating the rules for defining a relevant market, particularly in the framework of today’s digital economy;
2. The criteria, indicators, tests, and steps that the KPPU can apply to measure and determine the negative impacts and the corresponding fine for an antitrust violation; and
3. Updating the guidelines for bid-rigging, including on the use of indirect evidence.

While the KPPU can use these guidelines in handling antitrust cases, they also act as a helpful pointer for the public in understanding the KPPU’s views and methods.

Data & Digital Economy: Beyond the Hype of the Metaverse

电信设备身份登记的二级法令

2023年2月3日，柬埔寨王国政府颁布了关于使用SIM模块的电信设备身份登记的第41号二级法令，旨在：（i）防止和限制使用假SIM模块的设备、赃物和非法进口的设备；（ii）保护消费者的健康、安全和权利；（iii）提高电信服务质量；（iv）鼓励诚实和透明的市场竞争；以及（v）加强国家税收。本更新报告简要介绍强调《二级法令》的主要特点。

Proposals for Tighter Controls on Prospecting and Marketing of Financial Products in Singapore

• Consultation Paper on Enhancing Safeguards for Proper Conduct of Prospecting Activities at Public Places and Telemarketing. This paper focuses on safeguards for prospecting and marketing activities by physical means and telemarketing.
• Consultation Paper on Enhancing Safeguards for Proper Conduct of Digital Prospecting and Marketing Activities. This paper focuses on safeguards for digital prospecting and marketing activities.

中国-新加坡跨境破产合作项目

Conducting Virtual or Hybrid Meetings for Companies, VCCs and BTs: Tabling of Bill, Amendment of Practice Notes

1. Clarifying that companies, variable capital companies ("VCCs") and business trusts ("BTs") have the option to conduct fully virtual or hybrid meetings; and
2. Ensuring 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.

To provide additional guidance on the conduct of general meetings for issuers (including an issuer that is a REIT or BT) primary-listed on the Mainboard of the Singapore Exchange Securities Trading Limited ("SGX-ST") and Catalist (collectively "Issuers"), the Singapore Exchange Regulation ("SGX RegCo") issued amendments to Practice Note 7.5 (General Meetings) of the SGX Mainboard Rules and Practice Note 7E (General Meetings) of the SGX Catalist Rules (collectively "Practice Notes"). Key changes include:

1. Provisions relating to the conduct of hybrid general meetings; and
2. Shareholders' rights to fully participate in such meetings.

In this Update, we cover the key points of the Bill and the Practice Notes relating to the holding of virtual or hybrid meetings.

Upcoming Changes to Criteria for Computing 90% Threshold for Compulsory Acquisition

Constitutional Court Rulings Illuminate Certain Provisions of the PDP Law

Shortly after the enactment of Law No. 27 of 2022 on Personal Data Protection ("PDP Law") on 17 October 2022 (click here and here to read our previous client alerts on the PDP Law), the Indonesian Constitutional Court received two distinct constitutional review petitions concerning the PDP Law.

As discussed in our previous client alerts, there were ambiguities in the PDP Law, and we mentioned these ambiguities are likely to be clarified through the Law’s implementing regulations, when such regulations are issued. While the government has not issued any implementing regulations for the PDP Law, the Constitutional Court’s rulings clarified some provisions of the Law, namely on personal and household processing of personal data and limitation of data subjects’ rights, specifically with regards to national security and defence.

High Court Rules that DGIR is under Duty to Give Reasons for Imposing a Substantial Increase in Tax Liability on a Taxpayer

Recently, the Kuala Lumpur High Court in Government of Malaysia v Inoapps Sdn Bhd [2022] MLJU 2280 held that while it was bound by sections 103 and 106 of the Income Tax Act 1967 ("ITA") to enter a summary judgment against a taxpayer on a civil suit commenced by the Government of Malaysia for outstanding tax assessments, a stay of execution of the summary judgment was warranted on account of the absence of any reason given by the Director General of Inland Revenue ("DGIR") on the substantial increase in the chargeable income raised against the tax payer vide the assessments. The stay was pending the outcome of an appeal before the Special Commissioner of Income Tax ("SCIT") on the correctness of the same assessments. 

The taxpayer was represented by Christopher & Lee Ong's Corporate and Commercial Disputes Partners, John Mathew and HK Niak.

This Update highlights the main arguments advanced by both parties and the impact of this decision.

Court Grants Extension of Moratoria and Sealing of Documents in Restructuring of Cryptocurrency Business