By Raymond Mah & Lum Ying Mei
Market analysts and our Deputy Finance Minister Datuk Donald Lim forecasted a decent year for the construction industry with an expected 13.15% contribution to GDP, a reduction from 15% in 2012, while tourism and the services industry earmarked for a bigger role. If Malaysia’s current government wins the forthcoming election, the country’s construction firms should benefit from a wave of new, state-backed infrastructure projects which, combined with rising demand for residential properties, suggests that predictions of a bright 2013 for the sector appear to be well founded. (Sources: Oxford Business Group; Malaysia to maintain 5pc GDP growth this year)
13 January 2013: A specialised construction court will be set up in Kuala Lumpur and Shah Alam soon to hear construction disputes as demand for projects continue to rise, Chief Justice Tun Arifin Zakaria said.
“Construction cases are unique as they involve technical issues, multiple parties and varying terms of payment. Thus, a specialised construction court would be beneficial to the industry. By having specialised judges, it will help in the speedy disposal of such cases,” Bernama reported him as saying at the opening of the Legal Year 2013 here.
Read full article at The Star Online – Construction courts soon.
5 October 2012: According to the Construction Industry Development Board (CIDB), speedy dispute resolution often requires knowledge of industry intricacies and technical complexities. A Malaysian Bar Council representative added that the Bar Council is strongly in support of the construction court as there is sufficient case load to justify the court. If gazetted, Malaysia will be the second country in the world, after Britain to have established a specialist court for the construction sector. The board said justice in the construction sector would be best served by construction arbitration, statutory adjudication and the specialist construction court.
Read relevant articles at The Star Online: Court for construction sector in the works, Proposal for a specialist court for the construction industry
3 May 2012: The Construction Industry Payment and Adjudication Act 2012 (CIPAA), first proposed in 2003, has finally been passed. Malaysia has followed in the footsteps of the United Kingdom, Australia, New Zealand and Singapore in introducing the concept of statutory adjudication to the construction industry to resolve payment disputes. The aim is to hurry along cash flow and facilitate payment in the construction industry. Adjudication is intended to be a simple and fast process that promotes the ‘pay now, argue later’ policy. The Act applies to all construction contracts made in writing and that relates to construction work carried out wholly or partly within the territory of Malaysia. A statutory right has been created for unpaid parties to demand for payment for work done.
Adjudication is intended to be a simple and fast process that promotes the ‘pay now, argue later’ policy. The Act applies to all construction contracts made in writing and that relates to construction work carried out wholly or partly within the territory of Malaysia. A statutory right has been created for unpaid parties to demand for payment for work done.
Read relevant articles: New adjudication regime.
Raymond Mah, Head of our Dispute Resolution Practice Group is a certified adjudicator and frequently handles construction matters. View Raymond’s Profile here