Stay up to date with legal developments in Malaysia.
The Central Bank of Malaysia, or Bank Negara Malaysia (“BNM”) recently published on its official website the Policy Document on Outsourcing (“Policy Document”). The Policy Document, which officially came into force on 1 January 2019, applies to all financial institutions as defined in the Policy Document. It supersedes all previous guidelines and policy documents on outsourcing issued by BNM, and provides for a number of changes from the draft proposals by BNM in the Exposure Draft on Outsourcing (the “Exposure Draft”). This update provides you with a summary of the key changes effected by the Policy Document as compared to the Exposure Draft, including changes in the regulatory process for outsourcing arrangements, and details on the new or additional obligations to be observed by financial institutions, together with a listing of key dates for compliance with some of these obligations.
The government of Malaysia has recently set an ambitious goal for 20% of the country’s electricity to be generated from renewable sources by 2030, an increase from the previous 2%. To that end, several programmes are expected to be rolled out in order to achieve that target. This update examines the impact that those programmes may have on the development of the solar energy industry in Malaysia moving forward.
The Regional Comprehensive Economic Partnership (“RCEP”), a regional trade agreement currently being negotiated between the ASEAN countries and China, Australia, India, Japan, New Zealand and South Korea, has the potential to become the next mega-economic agreement after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”) to facilitate the expansion of investment and trade in the Asia Pacific region. Given the current global trade environment, rising protectionist sentiments, and the expected increase in US trade sanctions against China, having a modern, comprehensive and mutually beneficial economic partnership like RCEP could be favourable for investors and consumers. This update examines what RCEP holds for Malaysia and what we might expect next.