Monash Leads the Charge in Reforming Malaysia’s Contract Law

The initiative, spearheaded by Monash University Malaysia in collaboration with the National University of Malaysia (UKM), aims to modernise the Contract Act 1950 (Act 136) and ensure that Malaysia's legal framework evolves to meet the demands of the digital age.

A committee, led by Federal Court judge and Adjunct Professor at Monash University Malaysia's Department of Business Law and Taxation, Justice Datuk Vazeer Alam Mydin Meera, has been set up by the Prime Minister's Department's Legal Affairs Division to conduct an extensive review of the Act, which has not seen amendments since 1976. The committee will focus on addressing outdated definitions, tackling the complexities of modern transactions, particularly in e-commerce and digital agreements, and ensuring that Malaysia's contract law can effectively respond to emerging challenges in the legal and commercial landscapes.

Monash University Malaysia's role in this reform initiative is underscored by its expertise in commercial law. The university's Centre for Commercial Law and Regulatory Studies – Malaysia Hub (CLARS-MH) was appointed by the Prime Minister's Department's Legal Affairs Division to coordinate the review process. Monash's involvement is a direct result of its strong academic reputation in the field and its commitment to strengthening Malaysia's legal and commercial frameworks.

The project, which will run from January 2025 to December 2026, represents a significant collaborative effort between Monash University Malaysia, UKM, and the Legal Affairs Division. Monash's commitment to law reform was cemented in 2024, when the university signed a Memorandum of Understanding (MoU) with the Legal Affairs Division to establish the CLARS-MH. The Hub is tasked with providing expert research and support to modernise Malaysia's legal framework in line with international best practices.

The committee's work will be carried out in three phases, culminating in a comprehensive report on the need to update Act 136. Among the key aspects of the review is the creation of eight specialised working groups that will delve into specific areas of contract law, including contract illegality, unfair contract terms, and the integration of new legal concepts, such as cyber law and artificial intelligence.

Two academics from Monash University Malaysia are playing a crucial role in driving the project forward. Associate Professor Adnan Trakic, Director of CLARS-MH, is leading the project as the committee's primary coordinator. His expertise in contract law is instrumental in guiding the work of the eight specialised working groups. Associate Professor Trakic has been widely published in areas requiring reform, such as restitution, unfair contract terms, and promissory estoppel. Dr Ridoan Karim, Deputy Director of CLARS-MH, brings his extensive knowledge of cyber law, artificial intelligence, and emerging technologies to the committee. His role focuses on ensuring that the proposed reforms align with technological advancements and modern commercial practices, particularly in e-commerce.

The establishment of CLARS-MH, as outlined in the MOU signed in 2024, highlights Monash University Malaysia's continued leadership in law reform. The centre is dedicated to supporting broader law reform initiatives in Malaysia, providing expertise and research to modernise the legal system. This project, in particular, aligns with Monash's long-term commitment to advancing legal and commercial innovation in the region.

This project marks a milestone in Monash University Malaysia's ongoing commitment to advancing legal education, research, and innovation in the region. By providing academic expertise and a global perspective, Monash is proud to contribute to this important initiative that will have far-reaching implications for Malaysia's legal system.


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Monash University Malaysia

Monash University Malaysia, established in 1998, is the third-largest campus of Australia's largest university and the first foreign university campus in Malaysia. We are a premier research-intensive Australian university ranked among the top 50 universities globally by the QS World University Rankings 2024 and a member of Australia's prestigious Group of Eight (Go8). Monash University is also ranked 58 in the latest Times Higher Education World University Rankings. A self-accrediting university, we offer a distinctly international and culturally rich environment with approximately 9,300 students from 79 countries. Monash University Malaysia, including the Jeffrey Cheah School of Medicine and Health Sciences, is wholly owned and operated by Monash University since 2020.