to be able to claim for economic loss as a result of a negligent act, one has to show that some form of physical damage to property occurs as opposed to pure economic loss.

read Spartan Steel

liable for the reduction in value as a consequence of the physical damage but not for expected profits. we are not sure how much profits can one made or whether the goods can be sold at all. merely speculative. to allow for it will open up all kinds of claims for pure economic loss. (policy reason)

one can claim for loss of value for the physical damage suffered but not for expected profits.

read Muirhead v Industrial Tank Specialities

loss of profits claimable as it relates to loss of those lobster. cannot claim for loss of profits for the business ventures.

pecuniary loss unrelated to physical damage is irrecoverable even if it was foreseeable.

Tasks:

Read Kerajaan Malaysia v Cheah Foong Chiew & Ors and Dr Abdul Hamid Abdul Rashid & Anor v Jurusan Malaysia Consultants & Ors.

Is pure economic loss recoverable in Malaysia? compare with the Federal Court decision in MPAJ v Steven Poa Cheng Loon & ors