Screenshots

Economic cost of late court judgments.

I write to highlight a dysfunctional process within our legal-judicial system, and its associated direct economic impact on Malaysian businesses and entrepreneurs and indirectly on citizens’ employment opportunities

In 1999, a section of my (and some co-investor’s) business property that fronts a main public road was compulsorily acquired by the government whereupon the main road in question was widened and upgraded into a highway.

My business property is on commercial land and on the compulsory acquisition by the government, we were ‘compensated’ based on the land being valued as agricultural land. Needless to say, the difference between the valuation of commercial and agricultural land is considerable (running into a few million ringgit) and we immediately filed a claim in the High Court.

Since making our filing in 1999, we have been put through numerous postponements and delays due to legal /procedural technicalities or because those concerned were on medical leave. Now, on top of this, my lawyers tell me that there is no defined dateline for court cases to be heard and judgment delivered.

They tell me that cases can stretch for up to 10 or more years and there is effectively no control or accountability for timely resolutions and closure in the legal-judicial process. When I can expect a judgment - in another one, two, four, eight or 12 years?

But more worrisome to Malaysians in general is that this appears to be endemic in our judicial-legal system. If our government cannot assure its public of its property rights as per the law (in a timely manner), then this is effectively an undermining of our whole legal and economic system.

Our legal system is undermined as "justice delayed is justice denied" and there will always be some who will not let justice be denied them even if means operating outside of the law - intimidation by thugs, murder etc..

Our economic system, meanwhile, is undermined as all the commercial cases languishing in the courts for so many years’ causes’ money and capital assets to be either frozen or unrecovered by the banks. This means the money and capital are not rotating and not working and therefore not generating economic multipliers for the benefit of the nation’s economy. A significant deadweight loss to our country’s economy.

If the government can imagine a legal/judicial system/process that is capable of delivering timely resolution and closure on land acquisition cases, imagine the net value of all these stranded capital and stranded opportunities that could be allocated to more productive ventures generating benefits to government in the form of taxes, investors and employment opportunities.

Perhaps, my case on its own does not have a significant impact on our nation’s economy. But when aggregated with all the other outstanding land acquisition / commercial cases and compounded by the loss of trust and confidence, the damage is significant.

A dysfunctional legal system is bad thing for business investors and greatly affects Malaysia’s capability to deliver and offer a business and investment environment that can surpass our neighbours - who already may profess to have a superior advantage in this area.

One should be aware of the consequences of these hidden costs if not addressed. Clear correlation has been long established between the effectiveness and efficiency of a legal/judicial system and the corresponding health of the associated economy. Examining various countries in the region can give a cursory understanding of this linkage.

Just because these are hidden and indirect effects on our economy does not mean that we should not seize, understand and evaluate their impact. Any opportunity for Malaysia to increase its competitive capability should not neglected.

Footnote:-
I am assuming our judges are clean - but note that recently there has been some talk that judges can be selected / bought.

If true, God help M'sia!

I fully agree with peasant.
A case that would take you 2 weeks in Europe, takes you 4-5 YEARS in Malaysia, as i found....(and be a victim)

yes..why not.??

It will restore the honour and dignity of the judges that were removed unceremoniously.

And most of all..it will restore the dignity of the judiciary.

maybe we should open the Bowman files too.

Should review.

Review as law and order is an essential part of the nation.
Many businesses are taking advantage of the legal system to postpone cases. Once a judgement is given, then there is the appeal, which can take another few years provided no postponement.
But two weeks to complete a court case assuming filling is also included, I have never come across.