Malaysia

Enforcing Contracts in

Malaysia

Below is a detailed summary of the efficiency of contract enforcement. It follows the evolution of a sale of goods dispute, tracking the time, cost and number of procedures involved from the moment the plaintiff files the lawsuit until actual payment.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 185 economies. The most recent round of data collection was completed in June 2012.

Compare Malaysia to 184 other economies.

  • Competent Court

  • Court Name: Kuala Lumpur Sessions Court
  • City: Kuala Lumpur

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Indicator
Time (days) 425
Filing and service 35
Trial and judgment 270
Enforcement of judgment 120
Cost (% of claim) 27.5
Attorney cost (% of claim) 20.2
Court cost (% of claim) 1.1
Enforcement Cost (% of claim) 6.2
Procedures (number) 29
Filing and service
1      Plaintiff requests payment: Plaintiff or his lawyer asks Defendant orally or in writing to comply with the contract.
2      Plaintiff’s hiring of lawyer: Plaintiff hires a lawyer to represent him before the court.
*      Plaintiff’s filing of summons and complaint: Plaintiff files his summons and complaint with the court, orally or in writing.
*      Plaintiff’s payment of court fees: Plaintiff pays court duties, stamp duties, or any other type of court fee.
3      Registration of court case: The court administration registers the lawsuit or court case. This includes assigning a reference number to the lawsuit or court case.
*      Assignment of court case to a judge: The court case is assigned to a specific judge through a random procedure, automated system, ruling of an administrative judge, court officer, etc.
4      Delivery of summons and complaint to person authorized to perform service of process on Defendant: The judge or a court officer delivers the summons to a summoning office, officer, or authorized person (including Plaintiff), for service of process on Defendant.
*      Arrangements for physical delivery of summons and complaint: Plaintiff takes whatever steps are necessary to arrange for physical service of process on Defendant, such as instructing a court officer or a (private) bailiff.
5      First attempt at physical delivery: A first attempt to physically deliver summons and complaint to Defendant is successful in the majority of cases.
*      Proof of service: Plaintiff submits proof of service to court.
..
Trial and judgment
6      Defendant’s filing of defense or answer to Plaintiff’s claim: Defendant files a written pleading which includes his defense or answer on the merits of the case. Defendant's written answer may or may not include witness statements, expert statements, the documents Defendant relies on as evidence and the legal authori
7      Plaintiff’s written response to Defendant's defense or answer: Plaintiff responds to Defendant’s defense or answer with a written pleading. Plaintiff's answer may or may not include a witness statements or expert (witness) statements.
8      Framing of issues: Plaintiff and Defendant assist the court in framing issues on which evidence is to be presented.
9      Pre-trial conference on procedure: The judge meets with the parties to discuss procedural issues (for example which applications and motions parties intend to file, which documents parties intend to rely on, what will be presented as evidence the oral hearing or trial, etc.)
*      Request for interlocutory order: Defendant raises preliminary issues, such as jurisdiction, statute of limitation, etc.
*      Court’s issuance of interlocutory order: Court decides the preliminary issues the Defendant raised by issuing an interlocutory order.
10      Plaintiff’s appeal of court's interlocutory order: Plaintiff appeals the court's interlocutory order, which suspends the court proceedings.
*      Discovery requests: Plaintiff and Defendant make requests for the disclosure of documents, attempting to force the other party to reveal potentially detrimental documents.
11      Discovery disputes: Following a request for discovery of documentary evidence, the other party disputes the request and calls upon the judge to decide the issue.
*      Setting of date(s) for oral hearing or trial: The judge sets the date(s) for the oral hearing or trial.
12      Pre-trial conference aimed at preparing for trial: The judge meets with parties to make practical arrangements for the trial (for example, the number of witnesses parties intend to call on during trial, how much time each party is given to present oral arguments etc.).
13      Adjournments: Court proceedings are delayed because one or both parties request and obtain an adjournment to prepare for the oral hearing or trial.
14      Trial (prevalent in common law): The parties argue the merits of the case at (an) oral session(s) before the court. Witnesses and expert witnesses are questioned and cross-examined during trial.
*      Final arguments: The parties present their final factual and legal arguments to the court either by oral presentation or by a written submission.
15      Judgment date: The judge sets a date for delivery of the judgment.
16      Notification of judgment in court: The parties are notified of the judgment at a court hearing.
17      Registration of judgment: The court office registers the judgment after receiving a written copy of the judgment.
18      Appeal period: By law, Defendant has the opportunity to appeal the judgment during a period specified in the law. Defendant decides not to appeal. Judgment becomes final the day the appeal period ends.
19      Reimbursement by Defendant of Plaintiff's court fees: The judgment obliges Defendant to reimburse Plaintiff for the court fees Plaintiff has advanced, because Defendant has lost the case.
..
Enforcement of judgment
*      Plaintiff’s hiring of lawyer: Plaintiff hires a lawyer to enforce the judgment or continues to be represented by a lawyer during the enforcement of judgment phase.
20      Plaintiff's approaching of court enforcement officer or (private) bailiff to enforce the judgment: To enforce the judgment, Plaintiff approaches a court enforcement officer such as a court bailiff or sheriff, or a private bailiff.
*      Plaintiff’s request for enforcement order: Plaintiff applies to the court to obtain the enforcement order ('seal' on judgment).
21      Plaintiff’s advancement of enforcement fees: Plaintiff pays the fees related to the enforcement of the judgment.
22      Attachment of enforcement order to judgment: The judge attaches the enforcement order (‘seal’) to the judgment.
*      Delivery of enforcement order: The court's enforcement order is delivered to a court enforcement officer or a (private) bailiff.
23      Identification of Defendant's assets for attachment by court official or Defendant: Judge, a court enforcement officer, a (private) bailiff or the Defendant himself identifies Defendant's movable assets for attachment.
24      Plaintiff’s identification of Defendant's assets for attachment: Plaintiff identifies Defendant's assets for attachment.
25      Attachment: Defendant’s movable goods are attached (physically or by registering, marking or separating assets).
26      Report on execution of attachment: A court enforcement officer or private process server delivers a report on the attachment of Defendant's movable goods to the judge.
27      Enforcement disputes before court: The enforcement of the judgment is delayed because Defendant opposes aspects of the enforcement process before the judge.
28      Call for public auction: The judge calls a public auction by, for example, advertising or publication in the newspapers.
29      Sale through public auction: The Defendant’s movable property is sold at public auction.
30      Reimbursement of Plaintiff’s enforcement fees: Defendant reimburses Plaintiff's enforcement fees which Plaintiff had advanced previously.
31      Payment: Court orders that the proceeds of the public auction or the direct sale be delivered to Plaintiff.
..

Number of Procedures 31
Electronic filing of court cases -1
Specialized commercial courts -1
Total Number of Procedures 29
* Takes place simultaneously with another procedure.
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