What is the purpose of extending Part II of the Covid-19 Act?

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The Purpose of Extending Part II of the Covid-19 Act

Part II of the Temporary Measures to Reduce the Impact of Coronavirus Disease 2019 Act (Covid-19) [Act 829] has been extended until October 22 to ensure the effective and progressive coordination of its implementation, following recent amendments. This extension provides continued relief for contracting parties unable to fulfill their obligations due to government restrictions implemented under the National Recovery Plan and measures to control Covid-19. The Cabinet approved this extension on December 22, 2021.
Ensuring Coordinated Implementation Post-Amendment

The primary objective behind extending Part II of Act 829 is to facilitate a smooth and coordinated rollout of the legislation, particularly in light of recent amendments. These amendments, passed in both the Dewan Rakyat on December 16 and the Dewan Negara on December 22, 2021, necessitated a revised timeline for the Act's application. The extension, as stated by Minister in the Prime Minister’s Department (Parliament and Law) Datuk Seri Wan Junaidi Tuanku Jaafar, aims to ensure these changes are effectively integrated into the ongoing application of the law.
Continued Relief for Specific Contractual Categories

Part II of Act 829 specifically addresses contractual obligations within several key sectors that were significantly impacted by pandemic-related restrictions. These include contracts related to construction work, professional services, leases or tenancies of non-residential properties, event management, tourism within Malaysia, and religious pilgrimages. The law provides a legal shield, preventing parties from exercising contractual rights if an obligation cannot be met due to measures taken under the Prevention and Control of Infectious Diseases Act 1988 to curb Covid-19.
Preventing Contractual Recourse Amidst Restrictions

The core function of Part II of Act 829 is to suspend the enforcement of certain contractual rights when performance is hindered by Covid-19 control measures. As stipulated in Section 7 of the Act, an inability to perform contractual obligations arising from the specified categories, due to measures taken to control or prevent the spread of Covid-19, does not empower the other party to exercise their contractual rights. This provision was designed to offer a buffer to businesses and individuals facing unprecedented challenges in meeting their commitments.
Extension Beyond Original December 31 Deadline

Originally slated to conclude on December 31, the application of Part II of Act 829 has been prolonged by an additional period until October 22. This decision underscores the government's recognition that the economic and operational impacts of the pandemic, and the subsequent recovery phases, required a more extended period of legislative support. The extension ensures that entities within the covered sectors continue to receive protection from default claims stemming directly from pandemic-induced restrictions.

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What is the purpose of extending Part II of the Covid-19 Act?

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