Laws of MALAYSIA Act REPRINTING 275 GOVERNMENT FUNDING ACT 1983 Contains all amendments to 1 January 2006 PUBLISHED by the COMMISSIONER of law revision, UNDER the AUTHORITY of law REVISION ACT 1968 in COLLABORATION with PERCETAKAN NASIONAL MALAYSIA BHD 2006 laws of Malaysia ACT GOVERNMENT FUNDING ACT 2752 1983 date of Assent............ 9 March 1983, the date of publication in the Gazette of ... ... more 10 March 1983 REPRINT BEFORE Reprinting the first............ 2005 Funding Government 3 laws of MALAYSIA Act 275 GOVERNMENT FUNDING ACT 1983 ARRANGEMENT of SECTIONS section 1. Short title 2. Interpretation of 2A. The published instrument shall comply with Shariah principles 3. Power of Minister to accept investments 4. Use of funds 5. The investment period 5A. Terms and conditions for the issuance of the instrument 6. Investment certificate 7. Transfer investment 8. Return 9. Repayment No.9A. The participant investment institutions and major investment institutions a 9B. The depositor's institution 9 c. Duties and obligations of the depositor's institution in relation to transfers effected under subsection a 9B (2) 9D. Power of Bank to request information, examine and take copies of the 9E. Preservation of secrets by the Bank 10. Investment and returns charged to Consolidated Fund 11. Document or instrument of investment are not subject to stamp duty 12. The Bank shall act on behalf of the Minister and the Minister's power to replace Bank Accountant with 13. False entry, etc., in the books, documents, etc. 14. Violations of the Act, the penalty for him and criminal liability of the institution, Director, etc. 15. Civil Liability not affected due to prosecution or ketidakpendakwaan, etc.
Laws of Malaysia ACT 2754 16. Rules 17. The liability of the Government in respect of investment 18. (Cut)
SCHEDULE A schedule B Government Funding Section 5 laws of MALAYSIA Act 275 * GOVERNMENT FUNDING ACT 1983 an act to provide for the pemerdapatan of funds by the Government of Malaysia in accordance with Shariah principles and to provide for matters incidental to or connected therewith.
[11 March 1983]
SO THIS is what enacted by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows: short title 1. This Act may be cited as the Government Funding Act 1983.
Interpretation 2. (1) in this Act, unless the context otherwise requires — "customer account" means an account maintained by the depositor's institution for someone pemindah or transferee under subsection a 9B (5);
"statutory body" means any body or authority established, appointed or constituted by any written law, and includes any local authority;
"Bank" means a Bank Negara Malaysia which was established under the Bank of Malaysia Act 1958 [Act 519];
* NOTE — previously called Investment Act Government 1983 – see section 3, the Act Government (Amendment) Act 2005 [Act A1242].
Laws of Malaysia ACT 2756 "financial institutions" means — (a) any licensed banks, merchant banks licensed, licensed finance companies licensed discount houses, or, as the term is defined in the banking and financial institutions Act 1989 [Act 372];
(aa) any institution that is licensed to do business perbandakan Islam under the Islamic Banking Act 1983 [Act 276];
(b) any State Government;
(c) any statutory bodies; or (d) any fund, organization, organization scheme, incorporated or unincorporated, or any other person, as specified in writing by the Minister;
"participant investment institutions" means a financial institution authorized by the Bank under subsection no.9A (1);
"major investment institutions" means a participant investment institutions appointed by the Bank under subsection no.9A (2);
"the depositor's institution" means a participant investment institutions authorized by the Bank under subsection a 9B (1);
"The Shariah Advisory Council" means the Shariah Advisory Council established under section 16B (1) Bank of Malaysia Act 1958;
"Minister" means the Minister charged with the responsibility for finance;
"investment" means money payable by any person under section 3 and 5; '
"customer investment" means a person who transfers or take the transfer of investment under subsection a 9B (2);
"notification" means a notice inviting applications or offer to subscribe for or purchase a particular instrument;
Government funding 7 "returns" includes any form of profit, dividends, rental or benefit, including any fees or remuneration, payable given in relation to the instrument;
"instrument" means any instrument made and published under this Act in accordance with Shariah principles.
(2) if any records or accounts need to be maintained under this Act by the Bank or by any participant investment institutions, which acts either on its properties as major investment institutions or institutional depositors or otherwise, records or accounts shall be maintained in such manner or form as specified or prescribed by the Bank, including penyenggaraannya in writing or in any form of visual recordings (either stationary or moving image-shaped) , or any sound recording, or any whatsoever electronic recording, magnetic, mechanical, or whatever other recording, on any substance, material, the article or articles.
The published instrument shall comply with Shariah principles 2A. Any other instrument issued under this Act shall comply with Shariah principles as approved by the Shariah Advisory Council.
Power of Minister to accept investments 3. (1) the Minister is hereby authorized, subject to, and in accordance with, the provisions of this Act, to receive investment and to create and publish the instrument evidencing the investment on behalf of the Government of Malaysia, at any time and up to the maximum amount as he may from time to time, and every such prescribed maximum amount is hereinafter referred to as "investment issues" and every investment issues as aforesaid shall include any number or other reference as determined by the Minister.
(1A) subject to section 2A, an instrument may be made and published by any method or in any arrangements or by making any transactions with any other person in such manner or form as the Minister thinks fit.
Laws of Malaysia ACT 2758 (2) the total amount of money received under subsection (1) that is not paid back at any one time shall be not more than an amount to be determined from time to time by the Yang di-Pertuan Agong by order published in the Gazette.
(3) an order under subsection (2) shall, as soon as possible after its broadcast, tabled in the House of Commons.
The use of money 4. Money received under subsection 3 (1) shall be used, and are hereby appropriated, for the following purposes: (a) to repay the monies received, until such point as determined by the Minister;
(b) to pay, with the prior approval of the House of Commons set out through a resolution, to the Development Fund specified in the second schedule of the financial Procedure Act 1957 [Act 61], for the purposes of the Fund.
The investment period 5. Such investments under subsection 3 (1) shall be made for a period as determined by the Minister; and at the end of that period the money invested so shall be repaid in the manner hereinafter provided.
Terms and conditions for the issuance of the instrument 5. (1) subject to section 3 and 5, the Bank shall disclose the terms and conditions for any instrument to be issued.
(2) the terms and conditions of an instrument shall include the following: (a) the amount;
Government funding 9 (b) date of issue; (c) the maturity date; (d) return; (e) repayment of investment; and (f) any other terms and conditions as it deems fit by the Bank.
Investment certificate 6. Every investment must be received by the Bank on behalf of the Minister, and the Minister shall issue to the Bank, an investment certificate as the investment receipts shall be in such form or manner as may be determined by the Bank, when the maximum amount of an investment issues specified by him under subsection 3 (1) was invested with the Bank.
Transfer investment 7. Every investment, or any part thereof, may be transferred in accordance with the provisions of this Act and shall not be in accordance with any other means.
Return 8. Returns that are due or be given on such investments shall be accepted in accordance with the terms and conditions of the instrument.
Repayment 9. On the due date of an investment, or on any date respectively that otherwise provided in these terms and conditions of the instrument, any amount of money available for payments or investments shall be paid according to the terms and conditions.
The participant investment institutions and major investment institutions no.9A. (1) the Bank may authorize in writing any financial institution to become a participant investment institutions.
Laws of Malaysia ACT 27510 (2) the Bank may appoint in writing any participant investment institutions to become major investment institutions.
(3) Only an institution major investments can make the investment with the Bank, and the Bank shall maintain a record in his record in respect of every such investment.
(4) a participant investment institution shall maintain a single account with the Bank — (a) regarding the transfer of investments to him by an investment institution other participant or by himself to an investment institution other participant; and (b) if the participant investment institutions has been appointed as the main investment institution under subsection (2), there shall be included in the single account referred to in paragraph (a) an account of all his investments under subsection (3).
(5) the Bank shall pay the returns to investment institutions on every investment the participant in his/her account under subsection (4) on the date of such return becomes payable under section 8, and shall pay to the institution every investment in his account under subsection (4) as provided under section 9.
(6) the Bank shall maintain records on participant investment account of an institution, and such records shall be the sole and conclusive evidence about the position of the account, and all the details and details thereof, and such records shall be binding on the Bank, investment institutions and any other persons who have any interest in it.
The depositor's institution a 9B. (1) the Bank may authorize in writing any participant investment institutions to become institutional depositors.
(2) any person, other than the participant investment institutions, who wish either to make the transfer or taking transfer investment shall do so only through the depositor's institution.
Funding the Government 11 (3) an institution depositors must maintain with the Bank, in addition to the account disenggarakannya No.9A under subsection (4), a single separate accounts in respect of all transfers carried out through it under subsection (2).
(4) the Bank shall pay returns to depositors of an institution on every investment available in the financial institution depositors under subsection (3) at the date of return becomes payable under section 8, and shall pay to the institution's investment in his account under subsection (3) on the due date of the respective investment under section 9, in any way and in such manner as determined by the Bank.
(5) a depositor's institution shall maintain a customer's account in respect of every pemindah and transferee that became parties in any transfer effected by the depositor's institution under subsection (2), unless the customer's account in respect of a person transfer recipients maintained by a depositor's institution, and in the case of such institutions depositors first mentioned shall cause the investment is transferred to the account of the transferee with the depositor's institution the second mentioned.
(6) If a transfer of an investment made by any person under subsection (2), the Bank may require any institutional depositors so that issue a receipt notification in accordance with such form and manner as may be determined by the Bank; and (7) a permakluman receipt issued under subsection (6) shall not be traded or managed by any means whatsoever, and shall be used solely between the depositor's institution issuing it with the client the investment to which it issued as evidence of the transfer of investment under subsection (2) related to it.
(8) if the amount in the account maintained by the depositor with the Bank under subsection (3) is affected due to transfers effected through it under the laws of Malaysia ACT 27512 subsection (2), the depositor institutions shall notify immediately to the Bank any information about any change of the amount due to the transfer.
Duties and obligations of the depositor's institution in relation to transfers effected under subsection (2) a 9B 9 c. (1) an institution depositors shall maintain an account in respect of each client's investment.
(2) a depositor's institution shall issue to each of its customers a monthly statement in such form and within such period as may be determined by the Bank.
(3) a monthly statement shall be the sole evidence of investments held by investment at the end of the month in respect of which it was issued.
(4) a depositor's institution shall pay to the customer investment — (a) the return on every investment in the customer account, the investment and the payment shall be made as provided in section 8; and (b) any amount payable for any investment in the customer's account the investments, and the payment shall be made as provided in section 9.
(5) investments managed by an institution in respect of the depositor any transfer effected through it under subsection a 9B (2) shall be dealt with solely and specifically in such manner, and for the purpose, provided under section a 9B, and shall not be managed or used by the depositor's institution in such manner, or for any other purpose whatsoever.
(6) an institution depositors shall give to the Bank any statement, details, details or information regarding the account maintained by him under subsection (1) in respect of each client's investment, or investment 13 Government Funding customers in General, as may be prescribed by the Bank, or as may be required by the Bank in writing from time to time.
(7) the Bank may, by any officer authorized in writing by the Governor or Deputy Governor of the Bank, inspect and take copies of the account maintained by the depositor's institution under this section, including relevant account with any customer specific investment or any other records or accounts relating to or involving any investment under this Act, and the depositor, and every Director , officers, employees, servants or agents of the depositor's institution shall give the officer the Bank of all books, records, correspondence or any other documents as may be required by the officer, and shall give him all such assistance as may be required.
(8) a client Investment Account maintained by a depositor's institution under subsection (1) must be a secret between the institution with the customer investment and shall not be disclosed by the depositor's institution to any person except to the Bank, including the Bank officer referred to in subsection (7), unless the disclosure is authorized in writing by the customer that investment.
(9) an institution depositors should be absolutely and fully responsible and liable to the customer for its respect of all migration taken or made by the customer through the investment of depositors under subsection a 9B (2).
(10) a depositor's institution may require a client not investment paying any charges, fees, or any other payment in respect of any matter which is managed by it in respect of a client investments under this Act, except as otherwise provided by rules made under section 16.
Power of Bank to request information, examine and take copies of the 9D. (1) the Bank may, in writing, require any participant investment institutions that may be also a major investment institutions, so as to give to the Bank any statement, details, laws of Malaysia Act 27514 particulars or information in connection with any account or records maintained by him under this Act.
(2) the Bank may, by any officer authorized in writing by the Governor or Deputy Governor of the Bank, examine or take copies of any such accounts, records, books, or any other documents maintained by participant investment institutions under this Act.
Preservation of secrets by Bank 9E. Without prejudice to section 16A Bank of Malaysia Act 1958, any information in the possession of the Bank by virtue of any provision of this Act shall be secret between the Bank and the person to whom it is intended or from whom it obtained and shall not be disclosed except with the consent of that person.
Investment and returns charged to consolidated fund 10. The money is meant by investment, and returns are hereby charged to and is payable from the consolidated fund.
Document or instrument of investment are not subject to stamp duty 11. No stamp duty can be levied or payable on any document or instrument relating to any investment or his transition.
The Bank shall act on behalf of the Minister and the Minister's power to replace Bank Accountant
12. the functions, powers and duties given to the Bank under this Act shall be implemented, carried out and cashed by the Bank on behalf of the Minister, provided that the Minister may, if he thinks fit to do so, by order published in the Gazette, provide for all or any of the functions, powers or duties, the Bank entered or fulfilled, as the case may be, by the Accountant Government Funding 15 countries , and the Minister may by order make such modifications, adaptations and amendments to the provisions of this act as may be necessary to give effect to the implementation, the travel and fulfilment by the accountant.
False entry, etc., in the books, documents, etc.
13. No person shall, with intent to deceive — (a) makes or causes to be made a false entry;
(b) leave from make, or cause to be made, something left of the posts; or (c) alter, remove, conceal or destroy, or cause altered, removed, concealed, or destroyed, any entry, in any book or record, or in any report, paper sheet, statement or any other document of any whatsoever, relating to the business, Affairs, transactions, condition, assets, assets, liabilities, or any participant investment institution, or any major investment institutions, or any institution of the depositor , or the Bank.
Violations of the Act, the penalty for him and criminal liability of the institution, Director, etc.
14. (1) any participant investment institution which acts either on its properties as major investment institutions or institutional depositors or otherwise, or any other person, in violation of any provision of this Act commits an offence and, on conviction, be liable to a fine of not more than — (a) ten million dollars; or (b) if the amount of money being a matter of the offence, ten times the amount, whichever is greater, or imprisonment for a term not exceeding fifteen years, or both such fine and imprisonment: provided that if the person is found to have committed such offence is a body incorporated, prison sentence mentioned above does not apply to him.
Laws of Malaysia ACT 27516 (2) where any offence against any provision of this Act has been committed by any institution referred to in subsection (1), any person who at the time of the offence was a Director, officer or controller of the institution or purporting to act on any such property, or in any other manner or to the extent anything is responsible for the management of any such institution Affairs , or have helped in the management, committed such offence unless he proves that it was committed without agreed or pembiarannya and that he has undertaken every effort to prevent the occurrence of the offence as he ought to have it undertook, in view of the type of functions on the property and to all the circumstances.
(3) if any person (hereinafter referred to as "principal" in this subsection) shall be liable to any penalty or penalties under this Act for any act, omission, neglect or default, in which case he shall be liable to the same punishment or penalty for every act, omission, neglect or default committed by any clerks, servants or agents, or by clerks or servants of the agent: provided that an act , omission, neglect or default that was done by clerks or servants of the principal in carrying out his work, or by the agent while acting on behalf of the principal, or by clerks or servants of the agent in its employment by the agent or otherwise on behalf of the agent.
(4) without prejudice to subsection (2), if an institution referred to in subsection (1) shall be a financial institution under paragraph (b) or (c) in the definition of "financial institutions" under subsection 2 (1), it shall not be prosecuted for any offence committed under subsection (1), or the imposition of the punishment or penalty under subsection (3).
(5) no anything contained in this Act shall be deemed to prevent prosecution, convictions and sentencing of any person under the provisions of any other written law; but with such that no person can be punished more than once for the same offence.
Government funding 17 (6) for the purposes of this section, "Director", "officer" and "controller" shall have the meaning respectively as may be conferred upon him under subsection 2 (1) of the banking and financial institutions Act 1989.
Civil liability not affected due to prosecution or ketidakpendakwaan, etc.
15. The prosecution, or failure to prosecute, any person for an offence under this Act, or a release or escape of any person who is prosecuted for an offence under this Act, shall not, by any manner or extent whatsoever, affect sivilnya liability to any other person in respect of anything that they do under this Act.
Rules 16. (1) the Minister may, on the recommendation of the Bank, make such rules as are necessary or expedient to give full effect to the provisions of this Act, to perform or achieve the objects and purposes of this Act, or for carrying out the provisions of this Act with more perfect, better and easier.
(2) without prejudice to the generality of subsection (1), rules may be made to provide for — (a) matters relating to investment issues, application to obtain payment of an investment, return on investment, and investment repayment when mature;
(b) procedures and practices relating to the implementation of any provision of this Act by any person;
(c) form in respect of any provision of this Act;
(d) charges, fees and costs payable to the Bank, and charges, fees and costs payable to an institution the depositor, in respect of any provision of this Act; and (e) relating to the implementation of the transitional provisions contained in section 16 of the Act Government (Amendment) Act 1990 [Act A749].
Laws of Malaysia ACT Government Liabilities in respect of 27518 investment 17. (1) the Government shall be liable for all returns that are due and all payments due in respect of investments made under and in accordance with this Act, and in respect of all investment certificate that is managed under and in accordance with section 16 of the Act Government's investment (Amendment) 1990, but if the Government liability arising as a result of, or by virtue of, any default of a participant investment institutions in discharging its duties and obligations under this Act , including duties and its obligations as a major investment institutions or institutional depositors, whichever the case may be, the institution shall be liable when requested by the Government to indemnify the Government fully in respect of the liability.
(2) for the purposes of subsection (1), the "default" includes — (a) any neglect or failure to perform any function, or the exercise of any power, or perform any duties, under this Act; and (b) any offence under this Act, or of any offence under any other written law relating to any matter dealt with under this Act, without regard to — (i) whether or not the existence of any prosecution in respect of the offence; or (ii) whether the default is done by the participant investment institutions, or by any Director, officer, or the controller (as the word is defined in subsection 14 (6)), or any of its clerks, servants or agents of the participant investment institution, or any clerks or servants to the agent.
18. (Cut by the Act A1242).
SCHEDULE A (Cut by the Act A1242).
SCHEDULE B (Cut by the Act A1242).
Funding the Government of 19 laws of MALAYSIA Act 275 GOVERNMENT FUNDING ACT 1983 LIST AMENDMENT law short title force amend from * Act A749 Government Investment Act (Amendment) 01-01-1990 1990 Act A1242 Government Investment Act (Amendment) 17-06-2005 1990 * NOTE — see section 16 of the Act Government's investment (Amendment) 1996 for transitional provisions.
Laws of Malaysia ACT 27520 laws of MALAYSIA Act 275 GOVERNMENT FUNDING ACT 1983 LIST of SECTION AMENDED Section Power amend the effect from the long Title of the Act A1242 17-06-2005 1 Act A1242 17-06-2005 2 Act A749 01-01-1990 Act A1242 17-06-2005 2A A1242 Act 17-06-2005 3 Act A749 01-01-1990 Act A1242 17-06-2005 5 Act A749 01-01-1990 Act A1242 17-06-2005 5A Act A1242 17-06-2005 6 Act A749 01-01-1990 Act A1242 17-06-2005 7 Act A749 01-01-1990 8 A749 Act 01-01-1990 Act A1242 17-06-2005 9 Act A749 01-01-1990 Act A1242 17-06-2005 No.9A A749 Act 01-01-1990 Act A1242 17-06-2005 a 9B A749 Act 01-01-1990 9 c A749 Act 01-01-1990 Act A1242 17-06-2005 9D Act A749 01-01-1990 Government Funding 21 9E A749 Act 01-01-1990 10 Act A749 01-01-1990 Act A1242 17-06-2005 11 Act A749 01-01-1990 12 Act A749 01-01-1990 13 Act A749 01-01-1990 14 Act A749 01-01-1990 15 Act A749 01-01-1990 16 Act A749 01-01-1990 Act A1242 17-06-2005 17 Act A749 01-01-1990 Act A1242 17-06-2005 18 Act A749 01-01-1990 Act A1242 17-06-2005 Schedule A A749 Act 01-01-1990 Act A1242 17-06-2005 Table B A749 Act 01-01-1990 Act A1242 17-06-2005 Section Power amend the effect from the laws of Malaysia ACT 27522