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General Agreement of Development Co-operation between the Government of Canada and the Government of Malaysia [1986] CATSer 18 (16 May 1986)

E101082 - CTS 1986 No. 19

GENERAL AGREEMENT ON DEVELOPMENT CO-OPERATION BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF MALAYSIA

The Government of Canada and the Government of Malaysia,

WISHING to strengthen the existing cordial relations between the two countries and their peoples, and

DESIRING to foster development co-operation between the two countries in conformity with the objectives of economic and social development of the Government of Malaysia,

HAVE AGREED as follows:

ARTICLE I

The Government of Canada and the Government of Malaysia shall under this Agreement promote a programme of development co-operation, between their two countries, consisting of the following components:

(a) the sending of appraisal and evaluation missions to Malaysia to study and analyse development projects;

(b) the granting of fellowships to Malaysian nationals for studies and professional training in Canada, Malaysia or a third country;

(c) the assignment of Canadian experts, advisers and other specialists to Malaysia;

(d) the provision of equipment, materials, goods and services required for the successful execution of development projects in Malaysia;

(e) the development and carrying out of studies and projects designed to contribute to the attainment of the objectives of this Agreement;

(f) the encouragement and promotion of relations between firms, institutions and persons of the two countries; and

(g) any other form of assistance which may be mutually agreed upon.

ARTICLE II

1. In support of the objectives of this Agreement, the Government of Canada and the Government of Malaysia may conclude subsidiary arrangements or loan agreements in respect of specific projects involving one or several components of the programme described in Article I.

2. Unless stated otherwise, subsidiary arrangements concerning contributions of the Government of Canada shall be considered as administrative arrangements.

3. Loan agreements shall be the subject of formal agreements between the parties to this Agreement and shall bind them under international law.

4. Subsidiary arrangements shall make specific reference to this Agreement and the terms of this Agreement shall, unless stated otherwise, apply to such subsidiary arrangements.

ARTICLE III

Unless otherwise indicated, the Government of Canada shall assume the responsibilities described in Annex “A” and the Government of Malaysia shall assume the responsibilities described in Annex “B” in respect of any specific project established under a subsidiary arrangement. Annexes “A” and “B” shall be integral parts of this Agreement.

ARTICLE IV

For the purposes of this Agreement:

(a) “Canadian firm” means Canadian or other non-Malaysian firms or institutions engaged in any project established under a subsidiary arrangement;

(b) “Canadian personnel” means Canadians or non-Malaysian or other non-permanent residents of Malaysia, who are working in Malaysia on any project established under a subsidiary arrangement; and

(c) “dependant” means

(i) the spouse of a member of the Canadian personnel;

(ii) a child of the member of the Canadian personnel or his/her spouse who is under eighteen years of age and dependent on the member of the Canadian personnel or his/her spouse for support.

ARTICLE V

The Government of Malaysia shall indemnify and save harmless the Government of Canada, Canadian firms and Canadian personnel from civil liability for acts or omissions occurring in the course of the performance of their duties in the execution of any specific project established under subsidiary arrangements except for acts arising from gross negligence or wilful misconduct of Canadian firms or Canadian personnel.

ARTICLE VI

The Government of Malaysia shall exempt Canadian firms and Canadian personnel from Malaysian income tax on their official emoluments in respect of their period of assignment in Malaysia. In addition, the Government of Malaysia shall exempt Canadian firms and Canadian personnel from any obligation to submit written declaration in relation to these exemptions.

ARTICLE VII

The Government of Malaysia shall exempt Canadian firms and Canadian personnel from or bear the costs of customs and excise duties, sales tax, charges, levies and fees, on all equipment, products, materials and any other goods imported into Malaysia for or related to the execution of projects established under subsidiary arrangements.

ARTICLE VIII

The Government of Malaysia shall exempt Canadian personnel from the payment of customs duty, excise duty and sales tax in respect of bona fide personal effects and essential basic household equipment brought into or purchased in Malaysia for their own use or the use of their dependants provided that such personal effects and equipment are imported into Malaysia or purchased locally within a period of six (6) months from the date of their arrival in Malaysia. Canadian personnel may purchase duty free locally manufactured/assembled items provided that such purchases shall be made from the manufacturers and delivery shall be made from bonded warehouses. In the event of fire and theft, the exemptions under this Article may be re-exercised at any time during the assignment of the Canadian personnel.

The exemptions in this Article are given subject to the following conditions:

(a) each Canadian personnel is confined to only one unit or set or a reasonable number of any bona fide personal effects and household equipment to be imported or purchased locally;

(b) the personal effects and household equipment, if imported, shall be from their country of origin or the country of their last posting or acquired from any other country while in transit to Malaysia;

(c) the personal effects and household equipment cannot be sold or otherwise disposed of within a period of three (3) months from the date of importation or six (6) months from the date of local purchase.

(d) the personal effects and household equipment are permitted to be reexported or disposed of to persons enjoying similar exemptions;

(e) the aforesaid exemptions are given only once irrespective of whether the Canadian personnel’s assignment in Malaysia is extended beyond the original period of their assignment.

ARTICLE IX

The Government of Malaysia shall exempt Canadian personnel from the payment of customs duty, excise duty and sales tax in respect of one motor vehicle imported into Malaysia or purchased locally provided that:

(a) such imported motor vehicle has been used by the Canadian personnel in their country of origin or the country of their last posting, or such motor vehicle is purchased locally within the period of six (6) months from the date of their arrival in Malaysia; and

(b) if the motor vehicle is sold or otherwise disposed of it shall be subject to the normal duties and other charges at the rate in force on the date the exemption was given and on the value at the time of disposal.

In the event of fire, theft, damage and destruction the exemptions under this Article may be re-exercised at any time during the assignment of the Canadian personnel.

ARTICLE X

The Government of Malaysia shall grant Canadian firms and Canadian personnel freedom from currency exchange restrictions in respect of the re-exportation of their salaries or remunerations transferred from abroad through authorized banking institutions in Malaysia.

ARTICLE XI

Upon request, the Government of Malaysia shall inform Canadian firms and Canadian personnel of local laws and regulations which may concern them in the performance of their duties.

ARTICLE XII

The Government of Malaysia shall facilitate the repatriation of Canadian personnel and their dependants in cases where, in the opinion of the Government of Canada or the Government of Malaysia, the lives or safety of the Canadian personnel and/or their dependants are endangered.

ARTICLE XIII

The Government of Canada and the Government of Malaysia will endeavour to consult each other in respect of any matter that may from time to time arise from or in connection with this Agreement.

ARTICLE XIV

Differences which may arise relating to the interpretation and application of the provisions of this Agreement or of any subsidiary arrangement shall be settled by means of negotiations between the Government of Canada and the Government of Malaysia or in any other manner mutually agreed upon by the parties to this Agreement.

ARTICLE XV

This Agreement shall enter into force on signature and shall remain in force until terminated by either party on six months’ notice in writing to the other party. The responsibilities of the Government of Canada and the Government of Malaysia with regard to projects being carried out by virtue of subsidiary arrangements entered into pursuant to Article II of this Agreement and begun prior to the receipt of the termination notice referred to above shall continue until completion of such projects as if this Agreement remained in force in respect of and for the whole duration of such projects.

IN WITNESS WHEREOF, the undersigned, duly authorized by their respective Governments, have signed this Agreement.

DONE at Kuala Lumpur, this 16th day of May, 1986, in two originals, in French and English, each language version being equally authentic, provided that in case of any discrepancy, the English text shall prevail.

Manfred Van Nostitz

FOR THE GOVERNEMENT OF CANADA

Tan Sri Sallehuddin Mohamed

FOR THE GOVERNMENT OF MALAYSIA

ANNEX “A”

RESPONSIBILITIES OF THE GOVERNMENT OF CANADA

I. Unless otherwise indicated in subsidiary arrangements, the Government of Canada shall finance the following expenditures based on the rates authorized in its regulations.

(1) Expenditures related to Malaysian fellowship holders:

(a) registration and tuition fees, books, supplies or materials required;

(b) a living allowance;

(c) medical and hospital expenses;

(d) economy-class fares for travel by air or any other approved means of transportation, in compliance with the requirements of the fellowship programme.

(2) Expenditures related to Canadian personnel:

(a) their salaries, fees, allowances and other benefits;

(b) their travel expenses and those of their dependants between their normal place of residence and the port of entry and departure in Malaysia;

(c) the cost of shipping, between their normal place of residence and the port of entry and departure in Malaysia, their personal and household effects, those of their dependants and the professional and technical materials required by the said personnel for the execution of their duties.

(3) Expenditures related to certain projects:

(a) the cost of engineers, architects and other services required for the execution of projects;

(b) the cost of providing equipment, materials, supplies and other goods and of the transportation of same from their point of departure to Malaysia.

II. Contracts for the purchase of goods or commissioning of services financed by the Government of Canada and required for the execution of projects shall be signed by the Government of Canada or one of its agencies.

III. The Government of Canada shall provide the Government of Malaysia in a timely manner with the names of the Canadian personnel and their dependents entitled to the right and privileges set forth in this Agreement or in any subsidiary arrangement.

ANNEX “B”

RESPONSIBILITIES OF THE GOVERNMENT OF MALAYSIA

I. Unless otherwise indicated in subsidiary arrangements, the Government of Malaysia shall provide or pay for:

(1) where the assignment of any Canadian personnel is six (6) months or more, a lump sum installation grant to meet the initial settling-in cost of the Canadian personnel for the first fourteen (14) days of their arrival in Malaysia. The rates of the installation grant in Malaysian Ringgit (M$) are as follows:

The installation grant is a once-for-all payment and no other claims can be made following the arrival of their family or when the Canadian personnel returns from overseas (home) leave on extension of their assignment;

(2) where the assignment of any Canadian personnel is six (6) months or more, housing allowance in lieu of accommodation and subsistence allowance according to the rates in Malaysian Ringgit (M$) as follows:

The housing allowance is viewed as a subsidy;

(3) where the assignment of any Canadian personnel is less than six (6) months, an all inclusive per diem of M$70 per day;

(4) furnished premises and office services in compliance with the standards of the Government of Malaysia, including adequate facilities and materials, support staff, professional and technical material, telephone, mail and any other services which the Canadian personnel would need in order to carry out their duties;

(5) the recruiting and seconding of counterparts when required for the projects;

(6) any official assistance which may be required for the purpose of facilitating the travel of Canadian personnel in the performance of their duties in Malaysia;

(7) any official assistance which may be required for the purpose of expediting the clearance through customs of equipment, products, materials, supplies and other goods required for the execution of projects and the personal and household effects of Canadian personnel and their dependants;

(8) The storage of articles mentioned in paragraph (7) above during the period when they are held at customs and any measures required to protect these articles against natural elements, loss, fire and any other danger;

(9) all permits, licences and other documents including costs related thereto, if any, for equipment, materials, supplies or goods required for the execution of projects and to enable Canadian firms and Canadian personnel to carry out their functions in Malaysia;

(10) subject to any Malaysian laws, all necessary visas and all import or export permits, as the case may be, for the Canadian personnel and their dependants and for the personal effects of such Canadian personnel and their dependants;

(11) the prompt inland transportation of all equipment, products, materials, supplies and other imported goods required for the execution of projects, from the port of entry in Malaysia to project sites, including where necessary, the obtaining of priority by Malaysian forwarding and transportation agents;

(12) mileage allowance at the normal rates for journeys performed on official duties in accordance with the existing Malaysian regulations governing transport and travelling claims and at a level corresponding to the Malaysian counterparts assigned to work with the Canadian personnel. No claim is permitted for travelling between house and office. The Canadian personnel who does not own or use a personal car for official duties will be reimbursed for the cost of actual transportation used and in conformity with existing rules applicable to Malaysian counterparts assigned to projects. The Canadian personnel on duty away from this place of posting will also be eligible for subsistence/day allowance as well as payment of hotel expenses/lodging allowance at rates applicable to Malaysian counterparts assigned to work with the Canadian personnel;

(13) permission from the relevant Ministry or Ministries in accordance with the relevant laws and regulations to use all means of communication such as high frequency radio transmitters and receivers approved for use in Malaysia and telephone and telegraph networks, depending on the needs of a specific project; and

(14) reports, records, maps, statistics and other information related to projects and likely to assist Canadian personnel in carrying out their duties; provided that they are not classified and have no relation to national security.

II. The Government of Malaysia shall provide the Canadian personnel and their dependants with free medical and dental attention at Government hospitals. No reimbursement will be made by the Government of Malaysia if the Canadian personnel and their dependants elect to be treated by private practitioners. If admitted at a Government hospital the Canadian personnel and their dependants will be required to pay ward charges as laid down in Malaysian regulations applicable to the Malaysian counterparts assigned to work with the Canadian personnel.

III. The Government of Malaysia acknowledges that each Canadian personnel shall be entitled to a period of local leave of 30 days a year. Annual leave shall not be taken during the first six months of the assignment in Malaysia unless otherwise agreed by the Government of Malaysia. The Canadian personnel will not be permitted to accumulate their local leave immediately prior to the completion of their assignment thereby in effect bringing forward their date of departure from Malaysia. The Head of the relevant Ministry/Department to which the Canadian personnel are assigned or an officer designated by him is the approving authority for such local leave.

IV. The Government of Malaysia shall consider the employment of fellowship holders who receive grant financed studies for at least a period equivalent to the period imposed on any holder of the Government of Malaysia’s fellowship.