Court of Appeal cuts Lim Guan Eng’s defamation damages against Muhyiddin to RM450,000

The Court of Appeal today ruled that Muhyiddin Yassin’s statements linking Lim Guan Eng to tax breaks for Yayasan Albukhary were defamatory but reduced the damages awarded from RM1.05 million to RM450,000. The appellate court found the original damages to be manifestly high and substituted RM150,000 per defamatory statement, totalling RM450,000 ^{[1, 2, 3, 4]}.

The court set aside the High Court’s award of RM150,000 each for aggravated and exemplary damages, stating Muhyiddin's conduct was neither outrageous nor profit-driven to justify punitive damages. "We could not find any evidence that [Muhyiddin’s] conduct were outrageous or calculated to make profit for himself. And we [do] not see any need to be punitive against [him]," the panel said ^[1].

Lim Guan Eng initially filed the defamation suit on March 27, 2023, over three Facebook statements posted by Muhyiddin on March 9, 11, and 12 that falsely claimed Lim was involved in improper tax exemptions for Yayasan Albukhary ^{[2, 3, 4]}. The Kuala Lumpur High Court ruled in Lim’s favor in November 2024. It had awarded RM1.05 million in general damages, plus RM150,000 each in aggravated and exemplary damages ^{[1, 2, 3, 4]}.

The Ministry of Finance confirmed the tax exemption for Yayasan Albukhary was never revoked or cancelled, contradicting Muhyiddin’s claims ^[1].

Justice Datuk Azhahari Kamal Ramli said in delivering the court's decision, "On the issue of quantum, having considered the pattern of events and the evidence adduced at trial, we are of the opinion that the general damages awarded are manifestly high. Accordingly, this court awards RM150,000 for each of the three statements, amounting to RM450,000. We therefore substitute the sum of RM1.05 million with RM450,000" ^[2].

In addition to adjusting damages, the Court of Appeal ordered Muhyiddin to pay RM5,000 in legal costs to Lim Guan Eng. Lim was directed to pay RM30,000 in costs to Muhyiddin. The court also granted Lim’s cross-appeal for interest at 5% per annum from the date of the original judgment until full payment is made ^{[2, 3, 4]}.