Salleh Abas FJ:

[1] In this appeal certain transactions took place in Singapore between the respondents, a London confirming house, and a Singapore company known as Southern Equipment Suppliers (S) Private Limited, relating to the financing of purchases of goods by the latter. The appellants who are the directors of Southern Equipment Suppliers (S) Pte Ltd and live in Johore Bharu, gave a guarantee to the respondents with respect to those transactions. The question to be determined in this appeal is whether by entering into those transactions the respondents are a moneylender within the meaning of our Moneylenders' Ordinance No 42 of 1951, so that the guarantee which the respondents sought to enforce against the appellants is unenforceable, as to do so would be to undermine our Moneylenders' Ordinance, 1951.

[2] It is a general principle of law that any transaction taking place outside the jurisdiction can only be enforced in the local courts if they are not contrary to the local law and regulations. Under the continental system the priority of lex loci over lex fori is based on the doctrine of odre public or jus cogens under which any domestic law designed to protect public