Insights / Updates

Stay up to date with legal developments in Malaysia.

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Movement Control Order - Construction Industry: Update on "Critical Works"

On 23 March 2020, the Malaysian Ministry of Works (“KKR”) issued an update to its list of Frequently Asked Questions (“FAQ2”) in efforts to provide clarity and clear communication to address the queries affecting the construction industry arising from the implementation of the Malaysian Movement Control Order. A key highlight of the FAQ2 is that, in acknowledgment of the importance of ensuring the safety and cleanliness at the construction site during Restriction Period, KKR has revised the examples of “critical works” previously listed in its Frequently Asked Questions issued on 18 March 2020 (FAQ1).

Movement Control Order – Update on Employment Issues

Since the issuance of the Movement Control Order by the Government of Malaysia (“MCO”), business has slowed substantially for essential services providers and come to a standstill for others. The prospect of the MCO being extended beyond the initial restriction period, i.e. 18 March 2020 to 31 March 2020, is weighing heavily on the minds of business owners. The need to minimise expenses and conserve cash at a time when revenue has fallen substantially has given rise to questions of what employers can do to secure their business and at the same time support their employees.

In this Update, we examine various laws and pronouncements and explain their effects on the employer-employee relationship. We analyse in particular the two FAQs issued by the Ministry of Human Resources on 19 March 2020 and 20 March 2020.

Movement Control Order - How Does It Affect the Manufacturing Sector?

Manufacturing was not explicitly named as one of the essential services under the Prevention and Control of Infectious Diseases (Measures within the Infected Local Areas) Regulations 2020. However, the essential services list does provide for "any services or works determined by the Minister as essential or critical to public health or safety" to continue to operate during the Movement Control Order period between 18 March 2020 to 31 March 2020 ("Restriction Period"). On 18 March 2020, the National Security Council and the Ministry of International Trade and Industry issued corresponding press statement and circular to allow certain manufacturing companies to operate during the Restriction Period if such companies are producing critical products.