{"id":6722,"date":"2019-12-11T20:29:48","date_gmt":"2019-12-11T12:29:48","guid":{"rendered":"http:\/\/alexchanglaw.com\/?p=6722"},"modified":"2024-11-29T17:58:56","modified_gmt":"2024-11-29T09:58:56","slug":"foreign-companies-starting-business-venture-malaysia-yong-jei-beng","status":"publish","type":"post","link":"https:\/\/alexchanglaw.com\/index.php\/foreign-companies-starting-business-venture-malaysia-yong-jei-beng\/","title":{"rendered":"The Risks of Foreign Companies Starting Business Venture in Malaysia – Yong Jei Beng"},"content":{"rendered":"

The Risks of Foreign Companies Starting Business Venture in Malaysia<\/strong><\/p>\n

\u4e2d\u6587\u7248<\/a>
Versi Bahasa Malaysia<\/a><\/p>\n

Background<\/u><\/strong><\/p>\n

A Chinese Company (\u201cC\u201d) was lured by a company that is incorporated in Malaysia(\u201cM\u201d) to expend his business to Malaysia. C agreed to it and hence incorporated\u00a0 his company in Malaysia before\u00a0 entering into a fixed term contract (\u201cContract\u201d) with M, as the exclusive subcontractor of M.<\/p>\n

In order to fulfil the contractual obligation, C entered into a Tenancy Agreement (\u201cAgreement\u201d) with M, agreed to lease one of the M\u2019s premise as their site of production. The terms in the agreement\u00a0 inclusive of, one, the premise should only be used for the sole purpose of the aforesaid activity, the Contract related activity, and no amendment shall be done or caused onto the premise. It is also agreed that M will be supplying C the raw material on an agreed amount of volume and C will be producing the agreed amount of production to M. Failure to do so by any both parties, there will be a penalty charge imposed on the default party.<\/p>\n

However, M never once supply C with the said amount of material, causing C to fail in producing the expected amount of production, hence unable to sustain his business. After several complains made to M, but without any corrective action being taken, C left with no choice but to engage with other businesses and carried out in the premises. M also failed to supply C with the required system in which it is needed for C to carry out his contractual obligation, again C decided to encounter it through his own solution, by fixing new equipment in the premise.<\/p>\n

After a year, before the expiry of the contract, M induced C to sign a letter, in effect to put the Contract on hold. Without any assistant from his own side, and not being able to understand in English, C signed the \u201cOn-Hold Letter\u201d without understanding any single clause in the letter. M lead C to believe the letter was only for the purpose to put the existing contract on hold\u00a0 before both parties enter into a new contract, but in fact there were clauses that impose liability on C in which C did not agree upon.<\/p>\n

Soon enough, M issued a Notice to Quit to C, terminating the said Agreement with C, on the reason of C has been using the premise for other activities and purposes, and caused some amendment on the premises which hence breached the Agreement.\u00a0 By terminating the Agreement, the On-hold contract will be terminated together as both runs concurrently. M also raised a claim for damages and costs of repair incurred on the premises from C. As C failed to produce any evidence proving the initial state during the hand-over of the premise, M took the opportunity\u00a0 and held the premise is now in untenantable state, any cost incurred to repair or clean will be on the liability of C.<\/p>\n

C hence was forced to move from his existing ongoing business premises, left without any arranged plans or businesses and worsen with the damages claims. A large debt, troublesome legal proceedings left on the shoulder of a middle aged man.<\/p>\n

An innocent, readily to believe in good human nature, without single knowledge on local practice, domestic laws, and\u00a0 not even understand in either English or Bahasa Malaysia, middle aged man, came all the way from China, prepare to start his business, believing it to be his opportunity to build his career, a second peak for his life career, turn out to be a downfall just because of the absence for\u00a0 proper advice, lack of independent assistance.<\/p>\n

One very important lesson learnt from this tragedy was that proper advices and assistances shall be seek before engaging any businesses in any unfamiliar countries, especially in Malaysia.<\/p>\n

Dated 24th<\/sup> day of October 2019<\/p>\n

by Yong Jei Beng<\/p>\n\n\n

\"\"
Yong Jei Beng<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

The Risks of Foreign Companies Starting Business Venture in Malaysia \u4e2d\u6587\u7248Versi Bahasa Malaysia Background A Chinese Company (\u201cC\u201d) was lured by a company that is incorporated in Malaysia(\u201cM\u201d) to expend his business to Malaysia. C agreed to it and hence incorporated\u00a0 his company in Malaysia before\u00a0 entering into a fixed term contract (\u201cContract\u201d) with M, […]<\/p>\n","protected":false},"author":1805,"featured_media":11639,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[28,67,69],"tags":[87,88],"_links":{"self":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts\/6722"}],"collection":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/users\/1805"}],"replies":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/comments?post=6722"}],"version-history":[{"count":11,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts\/6722\/revisions"}],"predecessor-version":[{"id":11647,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/posts\/6722\/revisions\/11647"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/media\/11639"}],"wp:attachment":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/media?parent=6722"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/categories?post=6722"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/tags?post=6722"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}