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Swatch sues Malaysian govt over seizure of 'Rainbow' Pride watches worth S$19,000

KUALA LUMPUR — Swiss watchmaker Swatch has filed a lawsuit against the Malaysian government and Home Ministry officials, seeking compensation and the return of 172 watches that were allegedly linked to LGBT Pride, otherwise known as the lesbian, gay, bisexual and transgender rights movement.

Watches are displayed for sale at a Swatch store at Setia City Mall in Shah Alam on May 25, 2023.

Watches are displayed for sale at a Swatch store at Setia City Mall in Shah Alam on May 25, 2023.

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KUALA LUMPUR — Swiss watchmaker Swatch has filed a lawsuit against the Malaysian government and Home Ministry officials, seeking compensation and the return of 172 watches that were allegedly linked to LGBT Pride, otherwise known as the lesbian, gay, bisexual and transgender rights movement.

In its lawsuit, Swatch sought for the Malaysian High Court to issue an order to quash the Home Ministry’s seizure notices in May for the 172 watches worth RM64,795 (S$19,000), as well as a court order for all the seized watches to be returned within five days of the order.

The company is also seeking a court order for compensation, in the form of aggravated and exemplary damages.

The Swatch Group (Malaysia) Sdn Bhd had on June 24 filed the lawsuit via a judicial review application at the High Court in Kuala Lumpur. It named the four respondents as the Home Minister, the Chief Secretary of the Home Ministry, the Home Ministry Enforcement Division Secretary and the Government of Malaysia.

A judicial review is usually filed to challenge the actions or decisions of the government and public bodies, and is where those filing the lawsuit request for the court to review government decisions.

Based on court documents seen by the Malay Mail, Swatch had filed the lawsuit as it claimed that the Home Ministry officers had acted illegally, irrationally and with procedural impropriety so much so that their actions were considered to be disproportionate and for an improper purpose.

According to Swatch, it had been selling its watches since 1995 in Malaysia through its official stores and authorised resellers, which mostly employed Malaysians.

Swatch said it was not given prior notice of any complaints or intended action against the watches and was not given an opportunity to be heard before the seizures.

Swatch also argued that the seized watches did not cause any disruption to public order, morality or any violations of the law, saying that there have not been any incidents or disruptions since the older designs were made available in Malaysia from June 2022.

Before filing the lawsuit, Swatch had through its lawyers sent a letter on June 9 to the Home Ministry to demand the return of the seized watches, but said it had yet to receive a response.

Swatch said the refusal to return the watches had breached its constitutional rights to livelihood and property under the Federal Constitution's Articles 5, 8 and 13.

In an affidavit filed to support the lawsuit, Swatch Malaysia’s country manager said the company had suffered loss and damage to its trading reputation due to the seizures of the watches, and that its “ability to do business freely is greatly jeopardised”.

The company also said that its business and trading figures suffered in the immediate aftermath of the seizures.

The case is scheduled to be heard in the High Court on July 20, with Swatch’s application for leave for judicial review to be heard by High Court Judge Amarjeet Singh Serjit Singh.

For judicial review applications, the High Court’s leave or permission has to be obtained before the actual lawsuit can proceed to be heard. MALAY MAIL

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Malaysia LGBT Watch

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