27 April 2018

On 4 April 2018, Malaysia’s Dewan Negara (the Upper House of Parliament) passed the Limitation (Amendment) Bill 2018 (“Bill”). The Bill was passed by the Dewan Rakyat (the Lower House of Parliament) on 3 April 2018. The Bill has not been signed by the Yang-di Pertuan Agong and has not been gazetted into law.

The Bill will amend the Limitation Act 1953 to provide for the extension of the limitation period in relation to actions for damages for negligence not involving personal injuries. The key amendments under the Bill include the following:

  • Extension of the limitation period of three years from the date of knowledge of the person having the cause of action founded on negligence not involving personal injuries. A new section 6A considers negligence cases involving latent damage in construction cases, where the damage was not discoverable through general inspection and the person having the cause of action did not know or could not have reasonably expected the damage. The section also prevents any person from instituting court proceedings more than 15 years after the cause of action accrued even if it results in the extended limitation period being less than three years or even though the damage is discovered after 15 years.
  • A special limitation period for a person under a disability for cases under the new section 6A. The limitation period is three years from the date the person ceased to be under a disability or died but the action cannot be brought after 15 years from the date the cause of action accrued.

 

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