Act 342: Hefty fines can encourage abuse and corruption - business groups
A group of business associations today warned that hefty fines being proposed under a bill to amend the anti-pandemic law Act 342 could injure the economy and encourage abuse and corruption.
In a joint statement, they urged the Health Ministry to withdraw the bill and conduct a Regulatory Impact Assessment towards drafting "fair, conducive and genuinely necessary amendments".
"Good regulations must be perceived by the public as necessary, fair and reasonable, and for the good of...
A group of business associations today warned that hefty fines being proposed under a bill to amend the anti-pandemic law Act 342 could injure the economy and encourage abuse and corruption.
In a joint statement, they urged the Health Ministry to withdraw the bill and conduct a Regulatory Impact Assessment towards drafting "fair, conducive and genuinely necessary amendments".
"Good regulations must be perceived by the public as necessary, fair and reasonable, and for the good of the community and the nation. Draconian and abusive regulations will cause a political backlash and create a hateful and rebellious citizenry.
"We need the public to buy in and uphold the regulations deemed good for society. One good example is the 99 percent compliance of wearing masks which the public at large appreciate and readily comply with.
"The totally over-kill and draconian proposed penalties will not only put undue fear in the people, leading to dampened enthusiasm to go about their daily lives, injure the viability of business leading to failures and bankruptcies and economic disaster of our beloved nation.
"Hefty fines encourage abuse and corruption and will spur underground activities and protection rackets," the statement said.
Nine associations
The joint statement was signed by nine associations, namely the Building Management Association of Malaysia, Bumiputera Retailers Organisation, Industries Unite, Malaysia Reit Managers Association, Malaysia Retail Chain Association, Malaysia Retailers Association, Malaysian Association of Theme Park and Family Attractions, Malaysia Shopping Malls Association, and Real Estate and Housing Developers Association.
The Prevention and Control of Infectious Diseases Act 1988, otherwise commonly referred to as Act 342, is a law that gives power to the Health director-general to carry out measures needed to prevent the spread of infectious diseases.
Currently, the Act gives the health director-general the power to impose a maximum of RM1,000 fine against individuals who flout standard operating procedures, such as failure to wear a face mask in a public place.
MOH had been seeking amendments for the law enacted in 1988, where it looked at increasing the amount of penalties, which they viewed as outdated and no longer effective as a deterrent.
Among the proposed amendments is to increase the maximum fine for an individual to RM100,000 or a jail term not exceeding seven years or both.
This was later revised to a RM50,000 maximum fine or a jail term not exceeding three years.
However, it has been met with a huge backlash from the public and the opposition bench due to concerns over the exorbitant compounds and that it could lead to abuse and corruption.
Amendments
The amendment was supposed to be tabled in the Parliament in December, but had been postponed to the next sitting so that a consensus on the amendments can be reached with the opposition.
In their joint statement, the associations expressed their relief that the tabling of Act 342 amendments had been postponed.
However, they also raised concern over the absence of a consultation process to discuss the bill.
"To date after the withholding of the Bill for further review, no consultations have still yet been forthcoming.
"We, therefore, suggest that these amendments be thoroughly studied through consultations with all stakeholders under the Good Regulatory Practice Regulations and the requisite and due process of Regulatory Impact Assessment be conducted thoroughly.
"We, thus, propose that this Bill be withdrawn to conduct this requisite process."
The associations also urged the government to be fair in making regulations and urged against imposing severe penalties against a private entity over the action of others.
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