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The Construction Industry Payment and Adjudication Act 2012 ("CIPAA") came into force on 15 April 2014. The main purpose of CIPAA is to facilitate regular and timely payment. The CIPAA has effectively put in place a speedier adjudication mechanism and remedies for the recovery of payment in the construction industry.
Pursuant to the CIPAA, conditional payment arrangements are now prohibited. Further, a claimant can now claim (successfully) adjudicated payment directly from its contractor's main principal, in accordance with CIPAA. Upon the receipt of the adjudication decision, the unpaid party is allowed to reduce / suspend the progress of works, until it gets paid, without having to breach the contract.
Parties may apply to the High Court to enforce (in the case of claimant) or stay (in the case of respondent) a particular adjudication decision.
"Dumping" is an anti-competitive practice of international price discrimination, which occurs when a product being sold is priced significantly lower in the importing country compared to its market price in the exporting country. Although it may be seen as a positive step for increasing competition in the industry, overproduced imports are alleged to be of low quality with unreliable documentation. The Malaysian Ministry of International Trade and Industry ("MITI") therefore is empowered under the Countervailing and Anti-Dumping Duties Act 1993 to take action against such 'dumping'. After investigating complaints made against an importer, MITI will decide on whether to impose anti-dumping duties on said importer and the tariffs rate thereof. In March this year, MITI imposed anti-dumping duties of up to 31.14% on two Thai manufacturers for cellulose fibre reinforced cement flat sheets. Anti-dumping duties are also imposed on the import of four industrial raw materials: electrolytic tinplates, biaxially-oriented polypropylene, steel wire rods, and polyethylene terephthalate.
Imposing Anti-dumping measures is protective only and cannot prevent anti-competition trade practices. In addition, such measures could be seen as lacking transparency or allowing local manufacturers to monopolise the domestic market, and could create international economic and political strife. Therefore, such investigations into anti-dumping must be thorough and the duties imposed must be reasonable.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only
intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.
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Christopher & Lee Ong
Level 22, Axiata Tower ,
No. 9 Jalan Stesen Sentral 5
Kuala Lumpur Sentral,
50470 Kuala Lumpur, Malaysia
www.christopherleeong.com
Contacts: Lee Hock ChyeManaging PartnerD +603 2273 1919F +603 2273 8310hock.chye.lee@christopherleeong.comChristopher LeePartnerD +603 7958 8310F +603 7958 8311christopher.lee@christopherleeong.comYon See TingPartnerD +603 2278 8311F +603 2278 8322see.ting.yon@christopherleeong.comFiona SequerahPartnerD +603 7958 8310F +603 7958 8311fiona.sequerah@christopherleeong.comLim Wee HannPartnerD +65 62320606wee.hann.lim@rajahtann.comYau Yee MingPartnerD +603 2278 8311F +603 2273 8322yee.ming.yau@christopherleeong.comKuok Yew ChenPartnerD +603 7958 8310F +603 7958 8311yew.chen.kuok@christopherleeong.com| Rajah & Tann Asia is a network of legal practices based in Asia. |
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This update is solely intended to provide general information and does not provide any advice or create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on this update. |
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