Lay of the land: A screencap of the Act on the Attorney General’s Chambers website.
PETALING JAYA: Under the recently passed Jurisdictional Immunities of Foreign States Act 2024, which was made law on Aug 30, the immunity granted to foreign states in Malaysia could be revoked.
Foreign states as defined by the Act are nations outside of Malaysia that have their own governments and operate independently.
This Act, introduced and approved in Parliament, aims to manage the immunity granted to foreign governments, their leaders and their assets – as well as their leaders – from being sued in Malaysian courts.
However, this immunity is not guaranteed in all cases.
For example, if a foreign country does not offer the same treatment to Malaysia, that country’s immunity can be revoked.
Among the key clauses in the Act are those addressing various legal scenarios such as commercial transactions, employment contracts, personal injury claims, property rights, intellectual property disputes, participation in companies, maritime operations, tax recovery and arbitration agreements.
Clause 8 of the Act specifies that foreign states, including their heads of state and heads of government, are not immune from the jurisdiction of Malaysian courts in any proceedings arising from commercial transactions they conduct in Malaysia.
Clause 9 covers employment contracts, allowing foreign states to be taken to Malaysian courts for disputes over work performed or to be performed in Malaysia.
Clause 11 ensures that foreign states are accountable in legal proceedings related to rights, interests or obligations concerning immovable property in Malaysia, including property from inheritance, gifts and unclaimed property.
Clause 12 of the Act involves the rights of foreign states in intellectual or industrial property, including cases where they allegedly infringe on property rights protected in Malaysia.
Under Clause 15, they are not exempt from proceedings related to tax recovery, covering taxes, duties, excises, cesses and other compulsory charges imposed by law.
Clause 16 covers arbitration agreements, making clear that foreign leaders who agree to arbitration in Malaysia for commercial disputes cannot claim immunity regarding the arbitration’s validity, interpretation, procedures or enforcement of its awards.
