Enforcement of a foreign judgment must align with Malaysian public policy; imposing mandatory passenger cover contradicts the Road Traffic Act 1987.

JUDGMENT

Ahmad Kamal Md Shahid J:

Introduction

[1] The Defendant filed a Notice of Application dated 3 April 2023 (encl 8) under s 5(1) of the Reciprocal Enforcement of Judgments Act 1958 (REJA) and O 67 r 9 of the Rules of 2012 (ROC) to obtain the following orders and reliefs:

1.1. The Ex-Parte Order dated 23 February 2023 and the registration of the Judgment of the High Court of the Republic of Singapore dated 1 November 2022 in Civil Suit No: HC/OA 461/2022 (Singapore Judgment) be set aside.

1.2. The costs of this application be borne by the Plaintiff.

1.3. Such further or other relief as this Honourable Court deems fit.

[2] In essence, the Defendant is seeking to set aside the registration of the Singapore Judgment under the Order for Registration, on grounds of breach of public policy in Malaysia.

[3] In opposing the Defendant's application, the Plaintiff contends that:

3.1. The enforcement of the Singapore Judgment is not against Malaysian public policy. The provision of passenger liability under the motor insurance bureau scheme is, in fact, consistent with the Malaysian public policy; and

3.2. The Defendant is barred by res judicata and issues estoppel to relitigate the issues raised in previous proceedings.

[4] After the hearing, I allowed the Defendant's application (Enclosure 8). This judgment contains the full reasons for my decision.

Backgrounds Facts

[5] The narration of the background facts herein is adopted with and/or without modification from the Written Submissions of the parties and can be summarized as follows:

5.1. The Plaintiff is a non-profit organisation that operates a scheme funded by all general insurance companies and Lloyd's Underwriters transacting compulsory motor vehicle insurance business in Singapore. The primary function of the Plaintiff in Singapore is to ensure that victims of road traffic accidents are not without recourse, in the event that:

a. the driver of the motor vehicle who injures a victim cannot be traced; or

b. the driver of a vehicle who injures a victim is without effective insurance to cover his liability and is unable to compensate the victim.

5.2. The Defendant is a subsidiary of Pacific & Orient Berhad, a public company incorporated in Malaysia and listed on the Main Market of Bursa Malaysia.

5.3. The Defendant is licensed by the Minister of Finance under the Financial Services Act 2013 to carry on general insurance business in Malaysia (including motor insurance), and is regulated by Bank Negara Malaysia (BNM).

5.4. The Defendant is only authorised to carry on its insurance business in Malaysia. Therefore, the Defendant cannot carry on its business outside Malaysia, and does not have any business or presence in Singapore.

5.5. The Defendant is an authorised insurer under the Road Transport Act 1987 (RTA 1987). The insurance policies issued by the Defendant are therefore governed by the RTA 1987.

5.6. All Malaysian motor insurers (including the Defendant) are members of the Motor Insurers' Bureau of West Malaysia (MIBWM).

5.7. MIBWM was established on 15 January 1968 as a social scheme and a central fund financed by all Malaysian motor insurers, to provide compensation to road traffic accident victims in Malaysia who are unable to recover compensation due to the absence of an effective insurance policy.

5.8. Shortly after its launch, MIBWM encountered issues arising from accidents in Malaysia caused by motor vehicles registered in Singapore and insured by Singapore insurers, as compensation for victims could not be readily obtained from these Singapore insurers.

5.9. To resolve this problem and to facilitate the free flow of traffic between Singapore and West Malaysia, MIBWM entered into individual agreements with Singapore motor insurers which were not licensed to conduct insurance business in Malaysia.

5.10 Under these agreements, Singapore motor insurers agreed to be bound by MIBWM's Articles of Association and MIBWM's Agreement with the Minister of Transport. Singapore motor insurers also ag