On 24 December 2013, we received a question from Mr Reimund Chong:-
Can the court rules on commercial issue in the event of payment default to payback with interest of 8% PER MONTH from date of default.

Please advise.

Dear Reimund,

Order 42 rule 12 of the Rules of Court 2012 provides that except when it has been otherwise agreed between the parties, every judgment debt shall carry an interest at 5% per annum, whereby such interest rate to be calculated from the date of judgment until the judgment is satisfied.

Hence, parties are able to charge an interest rate of 8% per month from the date of default in the event that such terms have been incorporated into the contract itself.

Thanks you.