s 6 Implementation of obligations under the agreement
(1) Subject to the provisions of the Constitution but notwithstanding anything contained in any other existing law any agreement concluded with the Bank in respect of any borrowing authorized by subsection 3(1) and any bond, promissory note or other instrument issued pursuant to any such agreement and undertaking given in respect of any such agreement, bond, promissory note or instrument by the Government shall be valid and enforceable and have full force and effect in the Federation in accordance with their respective terms. (2) Without prejudice to the generality of the provisions of subsection (1)— (a) the Minister may provide by order published in the Gazette that any tax or duty payable under the Income Tax Act 1967 [Act 53], or the Stamp Act 1949 [Act 378], respectively shall be remitted where such remission is necessary to give full and complete effect to any such agreement, bond, promissory note or instrument; (b) nothing in the provisions of the Exchange Control Act 1953 [Act 17], shall apply to any transaction required to effect payment in any currency of any sum in accordance with the terms of any such agreement, instrument or bond in any currency. (3) Neither the Government nor any agency thereof nor the Central Bank of Malaysia shall except as shall be otherwise agreed between the Minister and the Bank create any lien on any of its assets as security for any external debt unless it is expressly provided that the lien will ipso facto equally and rateably secure the payment of the principal of and charges on any loan made by or any bonds, promissory notes or instruments issued pursuant to any loan made by the Bank to the Government. (4) In subsection (3)— “lien” includes mortgages, pledges, charges, privileges and priorities of any kind; “external debt” means any debt payable in any medium other than currency which at the time in question is legal tender for the payment of private and public debt in the Federation whether such debt is payable absolutely or at the option of the creditor in such other medium. *NOTE—This Act has replaced the Arbitration Act 1952 [Act 646]–see s. 51 of Act 646.