Legislation Overview
- Title: COVID-19 (Temporary Measures) Act 2020
- Type: Act
- Commencement: 2020-03-27
- Sections count: The source text lists provisions up to Part 12 and multiple numbered sections, but it does not state a total section count.
Summary
The COVID-19 (Temporary Measures) Act 2020 is a wide-ranging temporary measures statute that creates relief mechanisms across contracts, rental obligations, financial distress, meetings, court proceedings, property tax remission, COVID-19 control orders, construction-related disputes, and certain property sale and lease arrangements. Its structure shows that it is designed to respond to the effects of the COVID-19 event by modifying ordinary legal consequences in several areas, including contractual performance, insolvency-related processes, and procedural requirements. The Act affects a broad range of persons and entities, including parties to scheduled contracts, lease agreements, construction contracts, event and tourism-related contracts, financially distressed individuals and businesses, landlords and tenants, and persons subject to control orders or court and meeting procedures. These purposes are reflected throughout the Act, including Part 2 on temporary relief for inability to perform contracts, Part 2A on rental relief and related measures, Part 3 on financially distressed individuals, firms and other businesses, Part 4 on meetings, Part 5 on court proceedings, Part 6 on property tax remission, Part 7 on COVID-19 control orders, Part 8 and Part 8A on construction-related relief, Part 8B on cost-sharing, Part 8C on extension of delivery date, Part 9 on collective sale of property, Part 10 on further reliefs for specified contracts, Part 10A on foreign manpower salary cost increases, and Part 12 on rental waiver due to COVID-19 event in 2021.
What Activities Does This Legislation Regulate?
This Act regulates a broad set of activities and legal relationships affected by COVID-19. In Part 2, it regulates actions taken in relation to scheduled contracts, construction contracts, supply contracts, event contracts, tourism-related contracts, and leases or licences of non-residential immovable property. It provides temporary relief from actions for inability to perform a scheduled contract, relief for inability to exercise a right under a scheduled contract, and additional relief for construction, supply, event, and tourism-related contracts (Sections 5, 5A, 6, 7, 7A, and 7B). It also regulates the notification and assessor-determination process for such relief (Sections 9 to 17).
Part 2A regulates rental relief and related measures for lease agreements to which that Part applies, including cash grants under a public scheme, moratorium on rent recovery, rental relief, additional rental relief, statutory repayment schedules, and security deposit restrictions and replenishment duties (Sections 19C to 19T). Part 3 regulates temporary relief for financially distressed individuals, firms, and other businesses by modifying bankruptcy, insolvency, restructuring, dissolution, companies, limited liability partnerships, and business trust laws (Sections 20 to 26).
Part 4 regulates the conduct of meetings by allowing alternative arrangements for meetings (Section 27). Part 5 regulates court proceedings and Syariah Court proceedings by allowing them to be conducted using remote communication technology (Section 28). Part 6 regulates temporary measures concerning remission of property tax, including transfer of benefit and disputes about that transfer (Sections 29 and 30). Part 7 regulates COVID-19 control orders to prevent the spread of COVID-19 and their enforcement (Sections 34 and 35). Part 8, Part 8A, Part 8B, and Part 8C regulate construction-related disputes, extensions of time, cost-sharing, and extension of delivery dates (Sections 36 to 39P). Part 9 regulates collective sale of property affected by a COVID-19 event (Section 40). Part 10 regulates further reliefs for specified contracts, including renegotiation, termination, compensation, repayment schedules, and contracts of national interest (Sections 41 to 79). Part 10A regulates reliefs for construction contracts affected by increases in foreign manpower salary costs (Sections 79A to 79K). Part 12 regulates rental waiver due to the COVID-19 event in 2021 (Sections 85 to 107).
What Licences or Permits Are Required?
The source text does not set out a general licensing or permit regime for the Act as a whole. Instead, it creates application, notification, certification, and determination processes in specific Parts. For example, Part 2 requires a notification for relief and an application for assessor’s determination in relation to temporary relief measures (Sections 9 and 12). Part 2A requires notices of cash grant, applications for determination, and requests for information or documents in connection with rental relief and related measures (Sections 19F, 19M, 19I, and 19U). Part 8 and Part 8C similarly provide for applications for determination, certification, and assessor processes in construction-related and delivery-date relief matters (Sections 37, 38, 39N, and 39O). Part 10 provides for notices, certificates, and applications for determination in relation to specified contracts and contracts of national interest (Sections 45 to 67). Part 12 also provides for notices of rental waiver and applications for assessor’s determination in relation to rental waiver matters (Sections 92, 95, 100, and 102).
Accordingly, the Act is not framed as a licensing statute in the source text. Its operative mechanisms are relief applications, notices, certifications, and assessor determinations rather than licences or permits (Sections 9, 12, 19M, 37, 45, 60, 92, 95, and 100).
What Are the Penalties for Non-Compliance?
The source text expressly provides consequences for certain contraventions, but it does not set out a general penalty schedule in the excerpted provision list. In Part 2, section 8 addresses the consequences for taking action in contravention of sections 5, 5A, 6, 7, or 7A. That indicates that prohibited actions taken despite the temporary relief provisions have legal consequences under the Act (Section 8).
Part 2A includes a specific offence-style provision for false declarations and related misconduct in section 19W (Section 19W). Part 8C also includes a false declaration provision in section 39OG (Section 39OG). Part 10 contains a false declaration provision in section 76 (Section 76). Part 12 likewise contains a false declaration provision in section 106 (Section 106). The source text does not specify the exact penalties attached to these provisions, so no penalty amount or term can be stated from the provided text alone.
In addition, Part 7 provides for enforcement of COVID-19 control orders, but the source text does not specify the detailed sanctions in the provision list provided here (Section 35). Any further penalty detail would require the actual text of the relevant sections, which is not included in the source excerpt.
What Exemptions Are Available?
The Act contains several built-in limitations and carve-outs, but the source text only identifies them at a high level through section headings and part structure. Part 2 applies only to “scheduled contracts” and includes a First Schedule for those contracts, with section 18 allowing amendment of the First Schedule (Sections 4 and 18, First Schedule). Part 2A applies only to “lease agreement[s] to which this Part applies” and includes a specific interpretation and application framework (Sections 19B and 19C). Part 3 distinguishes between individuals and firms in financial distress and other businesses in financial distress, with separate modification provisions for different statutes (Sections 20 to 25).
Part 10 contains a “contracts of national interest” mechanism, which suggests a special category of contract subject to separate treatment under section 60 and related provisions (Sections 60 and 61). Part 12 applies to a lease agreement to which that Part applies and includes a separate framework for unstamped lease agreements (Sections 90, 100 to 102). Part 8C also contains its own application and interpretation provisions, indicating that its relief is limited to the contracts and circumstances described in that Part (Sections 39G and 39H).
Because the source text does not reproduce the substantive definitions or detailed exclusion clauses, it is not possible to state more specific exemptions than those indicated by the Part-specific application provisions and defined categories in the Act (Sections 4, 19C, 36, 39H, 42, 90, and 103).
Who Is the Regulatory Authority?
The Act uses different authorities depending on the Part. In Part 2, the Registrar of assessors and the panel of assessors are central to the determination process (Sections 10 and 11). In Part 2A, the Registrar of rental relief assessors, the panel of rental relief assessors, and “the Authority” are key actors, with the Authority handling cash grants under a public scheme and related requests for information or documents (Sections 19D, 19E, 19K, 19L, and 19I). In Part 10, the Adjustment Relief Registrar and panel of adjustment relief assessors perform the determination functions (Sections 63 to 73). In Part 12, the Authority for that Part, the Registrar of rental waiver assessors, and the panel of rental waiver assessors are the relevant bodies (Sections 87 to 89).
For COVID-19 control orders, the source text identifies a “control order” mechanism and enforcement provision, but it does not name a single regulatory authority in the provision list provided here (Sections 34 and 35). The Act therefore appears to distribute regulatory functions across multiple registrars, panels of assessors, and an Authority, depending on the subject matter of the Part concerned (Sections 10, 11, 19K, 19L, 63, 64, 87, 88, and 89).
How Does the Act Protect Contracting Parties?
A major function of the Act is to protect parties who are unable to perform contracts because of the COVID-19 situation. Part 2 provides temporary relief from actions for inability to perform scheduled contracts, relief for inability to exercise rights under scheduled contracts, and additional relief for certain construction, supply, event, tourism-related, and lease-related arrangements (Sections 5, 5A, 6, 7, 7A, and 7B). It also creates a notification process and an assessor-determination process to manage disputes about whether relief should apply (Sections 9 to 17).
Part 10 extends this protective approach by creating further reliefs for specified contracts, including renegotiation and termination mechanisms, compensation for landlords, revision of repayment schedules, and adjustment of rights and obligations for terminated contracts (Sections 43 to 59). It also includes a special regime for contracts of national interest and a separate determination process through adjustment relief assessors (Sections 60 to 73). Part 10A provides relief for construction contracts affected by increases in foreign manpower salary costs, again using a registrar and assessor framework (Sections 79A to 79J).
How Does the Act Address Rental and Lease Obligations?
Rental and lease obligations are addressed in several Parts. Part 2A is the main rental relief framework, dealing with cash grants under a public scheme, moratorium on rent recovery, rental relief, additional rental relief, statutory repayment schedules, and security deposit restrictions and replenishment duties (Sections 19D to 19T). It also allows the Authority to request information or documents and includes a false declaration provision (Sections 19I, 19U, and 19W).
Part 12 creates a separate rental waiver regime due to the COVID-19 event in 2021. It establishes the purpose of the Part, identifies the Authority for the Part, and sets up a registrar and panel of rental waiver assessors (Sections 85 to 89). It then provides for eligibility for rental waiver, notice of rental waiver, service of notice and prescribed documents on the landlord, and the rental waiver itself (Sections 91 to 94). It also provides for reversal or reduction of rental waiver, and a separate regime for unstamped lease agreements (Sections 95 to 102).
These provisions show that the Act does not merely delay rent obligations; it creates structured relief, review, and adjustment mechanisms for qualifying lease arrangements (Sections 19G, 19H, 19P, 91 to 102).
How Does the Act Affect Court Proceedings and Meetings?
Part 4 allows alternative arrangements for meetings, which indicates that meetings need not proceed only in the ordinary physical manner during the relevant period (Section 27). Part 5 allows court proceedings and Syariah Court proceedings to be conducted using remote communication technology (Section 28). These provisions are procedural in nature and are intended to maintain continuity of governance and adjudication while accommodating public health constraints.
The source text does not provide the detailed procedural rules in the provision list, but the headings make clear that the Act authorises alternative meeting arrangements and remote court processes as temporary measures (Sections 27 and 28).
Why Is This Legislation Important?
This Act is important because it is a central legal response to the disruption caused by COVID-19. It preserves contractual relationships by temporarily relieving parties from immediate enforcement action where performance is affected, while also creating structured processes for determining whether relief should apply (Part 2). It supports tenants and landlords through rental relief, rental waiver, repayment schedules, and security deposit protections (Part 2A and Part 12). It also helps financially distressed individuals and businesses by modifying insolvency and restructuring laws (Part 3).
Beyond private law relief, the Act keeps institutions functioning by allowing alternative meeting arrangements and remote court proceedings (Parts 4 and 5). It also addresses property tax remission, public health control orders, construction disputes, delivery delays, cost-sharing, and collective sale issues, showing that the legislation is designed as a broad temporary framework rather than a single-purpose emergency measure (Parts 6, 7, 8, 8A, 8B, 8C, 9, 10, 10A, and 12).
Related Legislation
- Bankruptcy Act — modified by Part 3 (Section 20).
- Insolvency, Restructuring and Dissolution Act 2018 — modified by Part 3 (Sections 21 and 23).
- Companies Act — modified by Part 3 (Section 22).
- Limited Liability Partnerships Act — modified by Part 3 (Section 24).
- Business Trusts Act — modified by Part 3 (Section 25).
- Property Tax Act — consequentially amended by Part 6 (Section 33).
- Land Titles (Strata) Act — may be modified for collective sale of property affected by COVID-19 event under Part 9 (Section 40).
- Building and Construction Industry Security of Payment Act — affected by Part 8 and Part 10A determinations (Sections 38B, 38C, and 79I).
- Income Tax Act — section 6 is disapplied in Part 2A and Part 12 (Sections 19V and 105).
Source Documents
This article analyses for legal research and educational purposes. It does not constitute legal advice. Readers should consult the full judgment for the Court's complete reasoning.