In Brief - BNM: New Rule On R & R Loans

A 'GREEN' INITIATIVE With effect from September 2015, Malaysian households will be required to practise mandatory garbage separation, an initiative which is intended to benefit the environment. Besides educating the public on how to dispose of garbage in a proper manner, this practice would also increase awareness on waste segregation and recycling. Notices will be issued to those who flout the rule, and a maximum fi ne of MYR1,000 imposed on errant households.

BNM: NEW RULE ON R & R LOANS Bank Negara Malaysia ("BNM") has revised the guidelines on Restructured and Rescheduled ("R & R") loans. Under the new guidelines, with effect from 1 April 2015, R & R loans will be classified as impaired in the Central Credit Reference Information System ("CCRIS"). An R & R facility is where a modification has been made to the original repayment terms and conditions of the loan, following an increase in the credit risk of a customer.

DBKL INTRODUCES NEW HOUSING PROCEDURES With effect from 13 March 2015, procedures introduced by Dewan Bandaraya Kuala Lumpur ("DBKL") will be imposed on plans consideration, additional guidelines and house renovation for residential development applications. These improvements are introduced to fast-track the decision-making process on home renovation, which could prevent the occurrence of unauthorised construction. However, these procedures will not be applicable to townhouses, cluster homes, detached houses, bungalows or houses under the stratified title ownership.

GUIDELINES TO BOOST EFFECTIVE CORPORATE GOVERNANCE In order to create a more robust and effective cooperative governance system, a new set of guidelines, known as Garis Panduan 27, has been introduced by the Cooperative Commission of Malaysia (Suruhanjaya Syarikat Malaysia or the "SSM"). These guidelines are important as a reference and guidance to form strong cooperative organisations, which comprise morally and ethically driven members, embedded with cooperative principles and values.

NEW GUIDELINES FOR ISLAMIC CONTRACT Malaysia's central bank, Bank Negara Malaysia aims to finalise operating standards for all major Islamic finance contracts by the end of the year in a bid to create the first comprehensive set of practical guidelines for the industry. The set of 11 standards aims to address inconsistencies in the use of Islamic contracts and is expected to be updated regularly in order to keep up with the changing market practices.

POTA PASSED The Prevention of Terrorism Act ("POTA"), recently passed by both Dewan Rakyat and Dewan Negara, aims to prevent the commission or support of terrorist acts involving listed terrorist organisations in a foreign country. The POTA, although not in force yet, has generated much...