The MEF had initially voiced acceptance of the nationwide lockdown as critical to flattening the Covid-19 curve although it described it as “a bitter pill to swallow”. “We need to open up and provide financial aid quickly.” On 10 May Prime Minister Muhyiddin announced in a live broadcast, that the CMCO will be extended until 9 June, the fourth extension since 18 March. “Most of all, the implications extend beyond employers to the ordinary man on the street who needs to put food on the table and meet his basic commitments,” he said. The Malaysian Government had eased lockdown restrictions on 4 May under a 'conditional MCO,' which allowed certain business sectors to resume operations. Syed Hussain said even companies permitted to operate during the lockdown were facing difficulties due to disruptions in their supply chains. It was originally scheduled to end on June 14, but was extended to June 28 in light of the continued trend of high Covid-19 numbers. The current lockdown was imposed on June 1. Even large companies need to operate to survive, to meet overhead costs.” “There comes a time when livelihoods must take priority as many people depend on their business. “Some of the micro enterprises and SMEs are suffering at a level beyond recovery and need urgent help,” he added. He also said that thousands of companies in non-essential sectors would be forced to shut down if the lockdown is not lifted soon. He urged the government to allow all sectors to reopen, warning that failure to do so would risk “serious economic and social implications”. “Employers are prepared to endure even tighter restrictions under the FMCO and even higher penalties for breaking the rules to end the lockdown, but the issue of livelihoods must also be addressed,” he said in a statement. “The restrictions under the FMCO (full MCO) and confusion over SOPs are killing businesses with many SMEs and micro enterprises severely impacted. MEF president Syed Hussain Syed Husman said there had to be a “reasonable balance” between saving lives and livelihoods. For example, if you are paid under a frustrated contract, you will have to pay back the money received.The Malaysian Employers Federation (MEF) today called for an immediate end to the Covid-19 lockdown, citing the damage sustained by businesses and the economy since the first movement control order (MCO) was enforced in March last year. This is provided in Section 66 of the Contracts Act 1950. Whoever receives any advantage under the void agreement has to restore or make compensation to the other person.

Senior Minister Ismail Sabri Yaakob has announced a new movement restriction for those intending to leave home to buy necessities. What is the effect when a contract is frustrated? Malaysia will be placed under total lockdown from 1st June 2021.

There are still alternative days or ways of delivery to complete the contract. If your contract provides for an alternative days or ways for delivery in the event of lockdown, lockdown is not an event of frustration.

However, if you are aware the area will be locked down in the next 2 days and have delayed in the delivery until 2 days later, you are not entitled to rely on frustration.

If it is a contract to deliver goods within a specific time to an area which is under lockdown, the contract is frustrated because it becomes impossible to perform by reason of the lockdown.

The contract does not become impossible to perform.

If MCO or Total Lockdown makes it difficult to perform a contract, it is not frustration.

If you have no money to pay debt during MCO or Total Lockdown, that is not frustration.

Whether you can rely on frustration depends on the following situations:

The event which is said to discharge the promise must be such that renders it radically different from that which was undertaken by contract.

The event relied upon by the promisor must be one for which he or she is not responsible.

The event upon which the promisor relies must have been one for which no provision has been made in the contract.

Three (3) elements to constitute frustration: The change makes it impossible or unlawful to perform the contractual obligation. In short, a contract is frustrated, when after the contract is made, a change of circumstances or event occurs. Can I rely on the doctrine of frustration to terminate the contract? This has affected the performance of the contract. The outbreak of the coronavirus (“COVID-19”) has resulted in Movement Control Order (“MCO”) and Total Lockdown. My company has entered into contract with Company A.

Mco malaysia total lockdown