Harmonising Automatic Compensation Scheme with the Malaysian Legal System

Service quality in the Malaysian telecom sector has been a major concern for consumers, who continue to inundate the Malaysian Communications and Multimedia Commission (MCMC) with complaints about service providers. A suggested solution to this problem is the adoption of an automatic compensation scheme (ACS) in the Malaysian communications sector. Under the ACS, service providers will be required to compensate consumers, who receive poor service quality, without the requirement of a formal claim. This scheme already exists in other jurisdictions, particularly the UK, where it has been used since 2019. Nevertheless, the adoption of the ACS in Malaysia would likely contend with a number of obstacles. This article provides a pathway for Malaysia to overcome the legal obstacles that would likely undermine the adoption of the ACS in the country. The article combines a qualitative, library-based doctrinal research approach exploring laws and regulations applicable to the ACS, with a quantitative approach involving the use of questionnaire directed at telecom service providers. The aim of the questionnaire was to elicit feedback from the telecom sector with a view to devising an appropriate framework. The article concludes with recommendations to harmonise the ACS with the Malaysian legal system, including the objectives to be served, when to apply the scheme, methods of implementing it, as well as issues of force majeure.