Law and Economics

Daljit Kaur Sandhu · Afida Mastura Muhammad Arif · Elistina Abu Bakar · Husniyah Abd. Rahim ·International Journal of Economics and Management ·2021 ·JEL: D18, K23

The vital role played by the moneylending industry in Malaysia resulted in 1,496 licensed moneylenders registered within the Klang Valley, in 2020. Even though the Moneylenders Act 1951 exist to protect the industry, law enforcement is a challenge to the regulator. This is evident as many borrowers’ complaints were made towards the moneylenders on poor self-regulation and questionable business practices. In understanding this gap, the main research objective is to gain insights on licensed moneylenders self-regulation in the moneylending process involving the borrowers. The Interpretative Phenomenology Analysis approach was used in extracting four themes from the twelve licensed moneylenders’ experiences. It was discovered that many of the moneylenders lacked the understanding of their rights and duties as stipulated in the Act. The apprehension of selfregulation amongst the licensed moneylenders was gravely misleading and require the regulator’s re-educational intervention. The first implication of the study is for the moneylenders and associations representing them. They must take remedial action to educate members on the value of practising business ethics in closing on the disparity found in their self-regulation throughout the moneylending process. The second implication is for the regulator to assess moneylenders practical adherence when introducing new business requirements.

Kwee-Heng Lee · Raja Noriza Raja Ariffin · Nik Rosnah Wan Abdullah ·Institutions and Economies ·2018 ·JEL: I 15; I 18; I 19

The emergence of proprietary private hospitals in the 1980s has led to a rise in cost of health care services, variation in care and increase in adverse events. These have contributed to societal concerns prompting the authorities to enforce Private Healthcare Facilities and Services Act 1998 (Act 586) that regulates all private hospitals nationwide in2006. Employing a case study approach, this paper discusses some salient themes on the impact of Act 586 on 15 purposively selected private hospitals in the Klang Valley in terms of achieving the national objectives of accessibility, equity and quality care. This study reveals several interrelated themes such as of policy, power, governance, compliance, and quality of care in achieving the national objective. Findings point to high investment of the state in private hospitals. Although a private hospital is stipulated to be a physician-led institution, in reality the majority of these hospitals are owned by government-linked corporations. Many private hospitals face major challenges in terms of compliance with the new regulations meant to improve patient safety and quality of care. However, full compliance to the regulations remains an insurmountable challenge as the private providers are influential. Faced with political constraints, asymmetric information and inadequate human resources, the regulatory authority seems hampered in its enforcement capacity.

Habib Ahmed · Ili Rahilah Ibrahim ·Journal of Consumer Policy ·2018

This paper examines the status of the legal and regulatory framework for consumer protection in Malaysia, an emerging economy. Using leximetrics and notions of incomplete law, the paper explores the financial consumer protection regime in the country by examining two aspects of the legal framework: the legal infrastructure and typology of laws. The Malaysian legal framework for financial consumer protection is assessed in light of the good practices identified in international guidelines issued on the themes by OECD and the World Bank. The results highlight the complementary nature and different roles that laws, regulations, and supporting institutions play in achieving a comprehensive financial consumer protection framework in the country.

Julien Chaisse · Manfred Elsig · Sufian Jusoh · Andrew Lugg ·Journal of International Economic Law ·2021

The investment chapter in the recently signed Regional Comprehensive Economic Partnership (RCEP) has the potential to affect investment decisions in the Asia-Pacific region and beyond. Yet, we know relatively little about the pathways through which countries determine the content of investment law in preferential trade agreements (PTAs). In this article, we use quantitative text analysis to test theoretically informed conjectures about the negotiation process. We focus on which of the signatories’ past agreements most influenced RCEP, and whether countries chose to draw more from treaty practice through their previous PTAs or bilateral investment treaties (BITs). Our analyses yield several noteworthy findings. First, we show that no single country dominated the negotiation process, instead RCEP represents an effort to reconcile overlapping agreements around a more common template. Second, contrary to the fears of some observers, we show that larger powers such as China and Japan did not overwhelmingly impact the agreement, instead portions were influenced by Association of Southeast Asian Nations agreements, the Comprehensive and Progressive Trans-Pacific Partnership, and others. Finally, we show that, on average, countries drew more from PTAs than BITs, but that they switch strategically between them to reuse language that they deem important for the development of investment law.