"THE COMMERCIAL LAW OF MALAYSIA"* - REVISITED SECTION 5(2) OF THE CIVIL LAW ACT 1956; CONSTITUTIONALITY, THE EU AND ISLAMISATION

Headnote

ABSTRACT

Sec. 5(2) of the Civil Law Act 1956 with its predecessors, providing for the application of English commercial law of Malaysia, have existed unaltered for more than 100 years even with revision. There have been important political and economic developments during this period: Independence: the Malaysian Constitution: UK's entry into the EU bringing with it the question of the constitutionality of applying English legislation and EU commercial legislation in independent Malaysia: and the attempt to found Malaysian civil law on Islamic values and ethics. Singapore has had to make drastic changes to its Civil Law Act, which it finally repealed and introduced a new legislation. The article considers the provision in light of these developments avoiding the well-known problems of interpretation.

Keywords: English commercial law in Malaysia; EU law in Malaysia; constitutionality of sec. 5(2); Islamic commercial values.

"THE COMMERCIAL LAW OF MALAYSIA" - DILAWAT SEMULA SEKSYEN 5(2) AKTA UNDANG-UNDANG SIVIL 1956; KEPERLEMBAGAAN, EU DAN ISLAMISASI

ABSTRAK

Seksyen 5(2) Akta Undcmg-Undang Sivil 1956 dan peruntukan terdahiiln yang digantinya, yang memperuntukkan penerimapakaian undang-undang komersil Inggeris di Malaysia, telah wujud selama lebih 100 tahun tanpa ditukar, mahupun disemak. Banyak perkembctngctn penting politik dan ekonomi sepanjang tempoh ini: Kemerdekaan: Perlembagaan Malaysia: kemasukan UK ke dalam EU yang membawa kepada persoalan keperlembagaan menerimapakai perundangan Inggeris dan perundangan komersil EU di Malaysia yang merdeka: dan cnbaan iintnk mengasaskan undang-undang sivil Malaysia pada nilai dan etika Islam. Singapura telah terpaksa melaknkan perubahan mendadak kepada Akta Undang-Undang Sivil: ia akhirnya memansuhkannya dan memperkenalkan sebuah perundangan barn. Makalah ini mempertimbangkan peruntukan tersebut berdasarkan perkembangan- perkembangan ini, tetapi mengelak daripada melaknkan tafsiran.

Kata kunci: undang-undang komersil Inggeris di Malaysia, undang- undang EU di Malaysia, keperlembagaan seksyen 5(2), nilai komersil Islam.

INTRODUCTION

Few written law provisions have caused as much difficulty in Malaysia (and in Singapore, its equivalent)1 as subsection 2 of sec. 5 of the Civil Law Act 1956. It has been nearly 40 years since the appearance of Prof. Bartholomew's2 monograph on that provision, and it may be appropriate to revisit the subject in light of the Federal Constitution, which he refers to in passing,3 and subsequent legal, political and economic developments which, of course, he could not have dealt with. When Prof. Bartholomew wrote his seminal work, his concern...