CLARS Members contribute to major Malaysian contract law reform
Monash Law is proud to see the publication of the final report from the review of Malaysian contract law, a significant milestone in a major project undertaken through CLARS Malaysia Hub.
Several members of Monash Law's Centre for Commercial Law and Regulatory Studies (CLARS) have been involved the project to modernise Malaysia's contract law.
This project has reached an important milestone, with the Committee for the Review and Reform of Contract Law presenting its final report to the Malaysian Minister for Law and Institutional Reform.
The final report has now been published on the Malaysian Government’s website, and stakeholder engagement concerning the proposed reforms is continuing.
The project was undertaken through CLARS Malaysia Hub, which was established in Kuala Lumpur in 2024 at the request of the Malaysian Government.
In his opinion piece, “A once-in-a-generation opportunity to modernise Malaysian contract law”, Committee Chair and Federal Court judge Justice Vazeer calls the proposed regime for exemption and limitation clauses “one of the most significant innovations” arising from the review.
Drawing on the UK’s Unfair Contract Terms Act 1977, the proposed regime would introduce a test of "reasonableness" beyond the consumer context to certain exclusion clauses.
Achievements like this are never the work of a single individual. They emerge from collaboration, persistence, intellectual generosity and a shared belief that legal scholarship should engage with the real challenges facing society.
Congratulations to Lisa Di Marco, who undertook substantial work developing and drafting the proposed exemption and limitation clause regime, including comparative and policy analysis, draft legislative provisions and supporting materials.
Karen Abidi contributed research, analysis and reform recommendations concerning the doctrine of consideration and commercial contract variations, directed towards modernising the Act and better aligning it with contemporary contracting practices.
Other CLARS members in the broader project included, Tanjina Sharmin and Emmanuel Laryea who provided important contributions.
The project demonstrates the international impact of CLARS and Monash Law scholarship, as well as the contribution that comparative and collaborative legal research can make to significant legislative reform. This is a wonderful example of research with genuine public impact.
For Malaysia, this work represents an exciting opportunity to consider how contract law can evolve to meet the needs of a modern economy while remaining grounded in principles of fairness and justice.
This is an excellent case of what can happen when governments, scholars, practitioners and judges work together in pursuit of thoughtful, evidence-based reform.