Since its independence in 1957, the landscape of the Malaysian economy has evolved and successfully diversified from one which was initially agriculture and commodity-based to a predominantly manufacturing and services sector.

In 1970, the Malaysian Government initiated the New Economic Policy (NEP) which aimed to eradicate poverty and correct racial economic imbalance by introducing new portions for capital ownership structures among the indigenous population (Bumiputeras), non-Bumiputeras and foreign interests. On expiry of the NEP in 1990, the National Development Policy (NDP) was introduced which became the guiding framework for the country's economic policy between 1991 and 2000. While still holding the NEP's twin objectives of poverty eradication and ethnic redistribution of wealth, the NDP places greater emphasis on redistribution through rapid growth.

In 2020, the Malaysian Government introduced the Malaysia Digital Economy Blueprint (Blueprint) and established MyDIGITAL, demonstrating the government aspirations to successfully transform Malaysia into a digitally-driven, high income nation and a regional leader in the digital economy.

The Economic Planning Unit of the Prime Minister's Department (EPU) is the principal agency responsible for overseeing the development plans for Malaysia. The EPU is tasked with managing the country's socio-economic development in a strategic and sustainable manner. Its core functions include planning, resource allocation, monitoring and stakeholder facilitation.

The primary sectors in Malaysia are manufacturing and services, and the Malaysian Investment Development Authority (MIDA) has identified the following areas to be the dominant industries and sub-sectors:

As of July 2020, the Department of Statistics Malaysia (DOSM) estimates the population of Malaysia to be 32.7 million with an annual growth rate of 0.4% since 2019.

The official language is Bahasa Malaysia. However, a majority of Malaysian citizens are bilingual or even multilingual and within the service sector, the common language tends to be English. Further, given its multi-ethnicity demographic, many Malaysians are also able to speak a variety of Chinese and/ or Indian dialects as well as more colloquial dialects depending on their geographical territory within the country.

In recent years, some companies have adopted no-gift policies in line with anti-corruption policies (see Question 30).

There are varying standard opening hours for business in Malaysia depending on the industry, and these hours can vary due to a variety of factors (for example, public holidays).

In Malaysia there are several annual public holidays, and also certain public holidays that apply to different states.

Twelfth Malaysia Plan (12MP) (2021 to 2025). The Malaysian Government is currently formulating the 12MP which seeks to develop three main components:

The Prime Minister announced that several catalysts have been identified to help drive economic growth for the next five years and that industries such as aerospace, advanced electrical and electronics, biomass and smart agriculture have been identified as sources of new growth for Malaysia. It has been reported that the 12MP would be aligned with the various economic recovery and stimulus plans announced by the Malaysian Government to mitigate the economic downturn caused by the onset of the COVID-19 pandemic and that business-friendly investment policies would be introduced to attract foreign direct investments into the country.

Digitalisation of Industries (Industry4WRD). The government introduced Industry4WRD to embrace the fourth industrial revolution in Malaysia. It was aimed at boosting support for the manufacturing and manufacturing-related services during its transition into the fourth industrial age of digitalisation within the period from 2018 to 2025.

This national policy seeks to pave the way for enhanced productivity, job creation and a high-skilled talent pool in the manufacturing sector, and ultimately contribute to the economic prosperity and societal well-being of the nation. In the Malaysian 2020 budget, the government announced:

Financial Sector Blueprint (2011 to 2020) (Blueprint). On 21 December 2011, the Central Bank of Malaysia (BNM) issued the Blueprint). Recognising the increasingly complex linkages, both between the various components of the financial system and the greater international connectivity and regional financial integration, the Blueprint superseded and moved away from the sector-based approach of the previous Financial Sector Masterplan 2001-2010.

The Blueprint charted the future direction of the financial system for the years 2011-2020 and focused on nine areas to further advance the financial sector development in Malaysia. Moving forward, on 31 March 2020, BNM announced an intention to set out its developmental and regulatory priorities for the next five years (2022 to 2026) under a new blueprint. This new blueprint, dubbed Blueprint 3.0, is aimed to be released in early 2022 and will focus on:

Until 2018, Malaysia was governed by a coalition known as Barisan Nasional (BN). However, following a general election in May 2018, the country saw a radical shift in its political landscape whereby a new coalition known as Pakatan Harapan (PH) gained electoral victory and became the country's new ruling party. However, following a series of events that took place in February 2020, such as political realignments and the breakdown of the PH coalition, a new and unelected ruling coalition known as Perikatan Nasional (PN) under Prime Minister Tan Sri Muhyiddin Yassin came into power.

On 17 August 2021 arising from some events which led to Tan Sri Muhyiddin losing the confidence of the majority of the Members of Parliament, Tan Sri Muhyiddin and the entire Cabinet resigned. In exercise of the constitutional powers of His Majesty the Yang Di Pertuan Agong (King) of Malaysia appointed on 12 August 2021, Datuk Ismail Sabri Yaakob (the former Deputy Prime Minister) as Prime Minister and at the time of writing, remains as such.

The next general election must be held by 16 September 2023.

Emergency Order. On 12 January 2021, the Prime Minister announced that His Majesty the Yang di-Pertuan Agong had exercised his powers under Clause (1) of Article 150 of the federal Constitution to make a Proclamation of Emergency. The proclamation was in effect throughout Malaysia until 1 August 2021. This followed the day after the imposition of stricter movement control measures in the states of Malaysia that were most badly affected by the outbreak of the COVID-19.

In March 2020, the COVID-19 outbreak in Malaysia led the government to impose a nationwide Movement Control Order (MCO) to curb the spread of COVID-19 by restricting the movement of persons, with certain limited exceptions. Since then, there have been a series of variations of the first Movement Control Order (MCO) which are periodically imposed (in different parts of the country) depending on the increase or decrease in the rate of infection in a particular state or region. Following the expiry of the first MCO, there have been a series of orders including the Conditional Movement Control Order (CMCO), Recovery Movement Order (RMCO), Enhanced MCO and the Targeted Enhanced MCO. These orders were made under the Prevention and Control of Infectious Diseases Act 1988 (PCID Act) setting out permitted and prohibited activities and conditions to be complied with to prevent the spread of COVID-19.

On 15 June 2021, the Malaysian Prime Minister unveiled the National Recovery Plan (NRP) which comprises four phases with the first phase imposing the most stringent Standard Operating Procedures (SOPs). At the time of writing various states in Malaysia have since transitioned onto different phases depending on how successfully they have managed to contain the outbreak. For example, Labuan has already transitioned to the fourth phase with all economic sectors there being allowed to operate with 100% workforce subject to the prescribed SOPs whereas some states such as Selangor remains in the first phase.

On 8 August 2021, it was announced that the prohibitions and restrictions under the SOPs of the NRP for individuals who have been fully vaccinated against COVID-19 would be relaxed. This includes the ability to dine-in at restaurants and food premises and the removal of the "ten-kilometre rule" for travel. On 15 August 2021, certain economic activities were allowed to resume operations such as car wash services, electrical and electronic shops and barber shops. Further, the manufacturing, construction, mining, and quarrying industries were allowed to resume operations under the NRP but is contingent on the level of the workforce that has been fully vaccinated.

The full list of economic activities can be found here: www.skrine.com/insights/COVID-19-updates/COVID-19-more-economic-activities-allowed-under-na.

Malaysia has an adversarial common law legal system based on precedent.

The principal sources of law in Malaysia are statutory enactments and case law. Statutory enactments include the:

The superior courts are the Federal Court, the Court of Appeal and two high courts of co-ordinate jurisdiction and status in Malaysia, namely, the High Court of Malaya and the High Court in Sabah & Sarawak, established under Article 121 of the Federal Constitution. The subordinate courts are the sessions courts and the magistrates courts, which are established by the Subordinate Courts Act 1948.

There are generally minimal restrictions on foreign investment in Malaysia. Subject to the qualifications set out below, foreign investors can hold 100% equity in all investments in new projects and invest in expansion and/or diversification projects in existing companies.

For every industry there are sector-specific regulations issued by the relevant governmental departments. Some sectoral regulations impose restrictions on the foreign ownership of equities in a company, and some impose prior regulatory approvals requirements before the commencement of business operations.

Depending on the industry and the entity, there may be some limits on the extent of foreign investment in certain sectors and also provisions requiring a minimum ownership by certain indigenous ethnic groups in Malaysia, known as bumiputera ownership. These limits on equity ownership limits may be imposed as a condition to obtaining licences in the relevant sectors.

As an example, in the oil and gas industry all upstream activities require a licence from PETRONAS, and depending on the specific type of activity, the foreign equity limit ranges between 30% and 100%.

Under the Communications and Multimedia Act, for network facilities licences and other non-class licences, it is stated that the licences are subject to equity conditions.

Other sectors where there are local equity requirements are:

Certain sectors such as private employment agencies and security services are required to be 100% locally held.

The Take-over Code 2016. The Securities Commission (SC) is a statutory body established under the Securities Commission Malaysia Act 1993 (SCA). In exercise of the powers conferred by section 217 of the Capital Markets and Services Act 2007, the Minister of Finance, on the recommendation of the SC, has prescribed a code on take-overs and mergers known as the Malaysian Code on Take-Overs and Mergers 2016 together with Rules on Take-Overs, Mergers and Compulsory Acquisitions (collectively, referred to as the Take-over Code 2016).

The Take-over Code 2016 applies to public companies listed on the stock exchange, an unlisted public company with more than 50 shareholders and net assets of at least MYR15 million or more, and real estate investment trusts or business trusts listed in Malaysia.

Any person who makes a take-over offer or acquires 33% of the voting shares of a company or obtains control in a company must comply with the provisions of the Take-over Code 2016. The Take-over Code 2016 provides that this obligation arises irrespective of how the control or acquisition is effected. This includes by way of a trust scheme, scheme of arrangement, compromise, amalgamation or selective capital reduction and repayment.

If the disposal, acquirer or target in a take-over is listed on the Malaysian Stock Exchange (Bursa Malaysia Securities Berhad) (Bursa), they would each also be subject to the listing requirements issued by Bursa.

The types of offers that could be made are mandatory offers, take-over offers and partial offers.

Distributive Trade Services. Under the Guidelines on Foreign Participation in Distributive Trade Services in Malaysia (DTS Guidelines), all proposals for foreign involvement in distributive trade within the meaning of the DTS Guidelines must obtain the prior approval of the MDTCA, including:

Distribution of products and services governed by other relevant legislation for specific reasons such as petroleum products, pharmaceutical, medicinal and orthopaedic products, toxic substances and explosives, arms, ammunitions, agricultural raw materials and live animals are subject to the requirements provided for in the sector specific legislation.

There is a general trade embargo in place against Israel.

BNM has also issued a directive placing a general prohibition on any resident or non-resident in Malaysia from:

In addition, under the Strategic Trade Act 2010, export controls are in place on strategic and technological items relating to arms and materials for the design, development, production and delivery of weapons of mass destruction (WMD). At present, the list of prohibited or restricted user countries (with different levels of restrictions) in this category include:

Exchange control is regulated under the Foreign Exchange Administration Rules of BNM. These rules have been progressively liberalised to create a competitive business environment. Currently, the Foreign Exchange Administration Rules provide for the following:

There are many governmental grants afforded to companies, start-ups and SMEs in Malaysia.

Under the PENJANA Scheme, there are a number of measures that have been implemented to increase investment activity which positively impact foreign investor.

Initiative No. 26 of PENJANA. This is entitled "Dana PENJANA Nasional" and is an investment fund of MYR1.2 billion available to start-ups and local private sector venture capitalist funds that match institutional private capital investment with selected venture capital and early state tech fund managers.

Initiative No. 34 of PENJANA. This relates to foreign direct investments. Companies that re-locate to Malaysia within one year from the date of approval and invest in Malaysia within three years thereon, will be eligible for:

Initiative No.34 also sets out:

Initiative No. 25 of PENJANA. This is entitled "Spur Set Up of New Businesses" and encourages the establishment of new businesses and transactions such as mergers and acquisitions, with an allocated quantum of MYR300 million. The financial incentives include:

Direct and indirect tax incentives are available for investment in selected industry sectors, including:

Direct tax incentives come in many forms, including:

Indirect tax incentives may give exemptions from, or refunds of, import duty and excise duty.

Various tax allowance and tax exemption incentives are also available to investors in promoted areas, and in regional multimedia and development corridors located across the country.

In 2016, the MIDA established the Incentive Co-ordination and Collaboration Office with the main aim of improving the central co-ordination of all incentive offerings. The MIDA has developed an interactive web portal to provide information on incentives (see: https://incentives.mida.gov.my).

In Malaysia, business enterprises must take one of the following forms:

Sole Proprietorship. A sole proprietor is personally liable for the debts of the business and must be registered with the Companies Commission of Malaysia (CCM) under the Registration of Businesses Act 1956.

Partnership. Two types of partnership can be established in Malaysia:

Locally Incorporated Company. Under the Companies Act 2016 (CA 2016), any person can incorporate a company. There are three types of companies that can be formed, a company limited by shares, a company limited by guarantee and an unlimited company. However, the most popular is a company limited by shares where the personal liability of its member(s) is limited to the amount of shares subscribed to. A company limited by shares may be a private or a public company.

A private company is one which restricts the right of its members to transfer their shares, restricts membership to no more than 50 members and has a share capital. A public company is one that prefers to raise capital from the public and would typically, but not necessarily, seek listing of their shares on the Malaysian stock exchange.

Branch of a Foreign Company. A foreign company can also opt to operate a branch in Malaysia.

The branch must register itself with the CCM first before commencing business or establishing a place of business within Malaysia in accordance with the CA 2016.

A foreign company seeking to establish a branch in Malaysia must appoint a local agent who must be a resident in Malaysia. Such agent will be answerable for what is required to be completed by the foreign company under the CA 2016. They will be personally liable to all penalties imposed on the foreign company for any contravention of the CA 2016, subject to a decision by a Malaysian court that states otherwise.

Typical Foreign Business Ventures. Foreign investors wanting to carry on a business in Malaysia have the following options:

The most common forms of business vehicles used by foreign companies in Malaysia are:

The choice of business vehicle depends on the nature of the business and investment made.

Incorporated Company. With the advent of the CA 2016, a private company can now be incorporated with a single member and a single director, as opposed to the previous requirement of at least two members. A public company can be incorporated with a single member. However, the CA 2016 requires a minimum of two directors for a public company.

A foreign national can form a company as the sole shareholder. However, if they want to be the sole director of the company, the CA 2016 requires a minimum number of directors (one director for a private company) to ordinarily reside in Malaysia with a principal place of residence in Malaysia.

An application for the availability of the company name must be submitted to the CCM together with a CCM fee of MYR50 and (if applicable) a letter of consent from the company/business who owns the trade mark of the name, or who bears the same name.

On approval by the CCM, all documents for incorporation must be lodged with the CCM within one month from the date of approval with the registration fee of MYR1,010.00 for a company limited by shares. The incorporation documents to be lodged are an:

The subscriber(s) and the first director(s) can (but need not) be the same individual(s).

On being satisfied that the requirements for the incorporation of the company have been complied with, the CCM will issue a notice of registration. The notice of registration is conclusive evidence that the company is duly registered under the Companies Act 2016. However, a company can request the CCM to issue a certificate of incorporation to the company on payment of a fee of MYR20.00.

The incorporation of a local company takes approximately ten working days, if all the documents are in order.

Branch of a Foreign Company. If the investor intends to set up a branch office, an application for the availability of the name must be submitted to the CCM using an application and reservation for availability of name together with a CCM fee of RM50.00 and a copy of the certificate of incorporation or registration of the foreign company (or equivalent).

On approval by the CCM for the use of name, all documents for registration must be lodged with the CCM within one month from the date of approval with the appropriate registration fee based on the amount of the authorised share capital of the foreign company. The incorporation documents to be lodged are:

The required supporting documents include:

The CCM then issues a notice of registration, which is conclusive evidence that the requirements as to the registration of the foreign branch have been complied with.

Further information on this can be obtained here: www.ssm.gov.my.

Incorporated Company. A company incorporated under the Malaysian CA 2016 must comply with its reporting provisions, including:

Branch of a Foreign Company. The reporting provisions under the CA 2016 applicable to a branch office must be complied with, including:

With the abolishment of the par value regime under the CA 2016, companies can now issue shares at any value depending on current circumstances of the company. There is no requirement for minimum share capital or maximum share capital. However, different specific sectors may have minimum capital requirements issued by the relevant governmental departments for licensing or granting approvals.

A company can also apply to list on the Bursa, in either the Main Market, the ACE Market or the Leading Entrepreneur Accelerator Platform (LEAP) Market.

While there are no specific minimum eligibility requirements for admittance to the ACE Market or LEAP Market, companies seeking to list on the Main Market must satisfy one of the following tests:

Shares can be issued for non-cash consideration, provided the company files a return and a copy of the transaction document containing details of the consideration with the CCM.

Restrictions on Rights Attaching to Shares. A private company must restrict the rights of its members to transfer shares.

Preference shares carry no voting rights, under the CA 2016.

Apart from the statutory restriction on the transfer of shares, the CA 2016 does not specify any other form of restrictions or prescribe the extent of scope of the restrictions. Subject to the doctrine of illegality, and the bona fide exercise of powers, the Constitution of a company can be altered or added to at any time by way of a members' special resolution.

Automatic Rights Attaching to Shares. Ordinary shares give holders rights of ownership in the company, such as the rights to:

In the event of liquidation, return to holders of ordinary shares rank after all the other secured and unsecured liabilities and returns to preference shareholders of the company.

A company is managed by a board of directors, which is assisted by a management team.

Foreign expatriate managers will require work permits to be issued by the Immigration Department of Malaysia before they can work in Malaysia. The issue of work permits may be subject to various qualifications, including:

Directors and officers are responsible for the overall management of the company. When they exercise their powers, they must act honestly, with diligence, with reasonable skill and in the best interests of the company. Each director/officer has a fiduciary duty to the company and must not allow his or her personal interest to come into conflict with that duty.

When directors/officers exercise their powers, the exercise must be for the proper purpose, and it must be exercised within the conferred discretion. In discharging the duties of their position, a director/officer must act honestly and with utmost good faith for the benefit of the company.

A director/officer is prohibited from gaining any benefit from the corporate assets, opportunities or information that may be obtained by virtue of their position and must perform the duties expected of him or her with a reasonable standard of knowledge, skill and experience. In determining whether the director has sufficiently discharged his/her duties, the actual knowledge, skill and experience that the director has, or holds himself/herself out to have, will be taken into account.

The key legislation that governs environmental matters is the Environmental Quality Act 1974 (EQA 1974) and the regulations made thereunder, which is aimed at preventing, abating, controlling pollution and the enhancing of the environment. The EQA 1974 incorporates provisions in relation to the licensing requirements for the abatement and control of pollution, emissions and waste and assessments of environmental impact when it comes to the undertaking of certain prescribed activities.

There are also environmental, social and governance (ESG) requirements that must be observed by public listed companies in Malaysia, such as the inclusion of sustainability statements in the annual reports of companies that are listed on the main market and ACE Market. This is essentially a narrative statement of the company's management on material, economic, environmental and social risks and opportunity. In their sustainability statement, main market listed issuers are required to include matters on governance structure, scope of the sustainability statement, material sustainability matters and management approach.

Employment relationships are regulated by the following legislation:

Equivalent legislation exists for employees in East Malaysia, although the provisions may differ.

The Employees' Minimum Standards of Housing, Accommodations and Amenities Act 1990 applies in relation to foreign employees. The ACT requires that a minimum standard of housing must be provided to foreign national employees who are hired under a Visit Pass (Temporary Employment).

There are no laws that specifically apply to employees working abroad.

An employer cannot contract out of their statutory obligations. Regardless of any choice of law clause, in adjudicating an unjust dismissal case, the Industrial Court is likely to refuse to be guided by the laws of another jurisdiction that are less favourable to the employee than the Industrial Relations Act.

In respect of employees falling within the Employment Act 1955, employment contracts lasting for more than one month must be in writing. However, failure to provide a written contract does not invalidate the employment relationship or the contractual terms. The Employment Act provides that employment contracts must include a provision for termination.

Certain terms can be implied by law or by custom. Any condition of service under the Employment Act more favourable to the employee must prevail over that in the employment contract.

Where a trade union of workmen has been accorded recognition by an employer or a trade union of employers, they may commence collective bargaining and set out proposals for a collective agreement. A collective agreement must be in writing and signed by the parties to the agreement or by persons authorised.

Employment Pass. Highly skilled foreign nationals (expatriate) must obtain a valid work pass from the Immigration Department to take up employment in Malaysia. The type of pass required varies depending on the employee and the work they intend to do (for example, either an Employment Pass or a Professional Visit Pass). Expatriates or skilled foreign workers who take up paid employment with a Malaysian employer must obtain an Employment Pass. There are three categories of Employment Passes, depending on salary received by the expatriate and the duration of the employment contract:

Since 1 January 2021, companies that intend to hire expatriates are required to advertise job vacancies via the JobsMalaysia Portal for a period of no less than 30 days. Only companies that are unable to find suitable local candidates after the 30-day period may proceed with their application to hire expatriates.

Specialised skills positions (including those with specific and unique skills as well as strategic competencies) and positions which require foreign language skills may be exempted from the advertising requirements on the employer's application for exemption to SOCSO.

Professional Visit Pass. Expatriates who enter Malaysia to take up temporary professional work (such as in relation to an expertise transfer, research, training, volunteering or for student internships must obtain a professional visit pass, which has a maximum duration of 12 months (non-renewable)). Expatriates under a professional visit pass are not considered Malaysian employees.

Visit Pass (Temporary Employment). Unskilled foreign workers from specified source countries are only allowed to work in specified sectors of the economy (manufacturing, construction, plantation, agriculture and services). They must obtain a visit pass (for temporary employment) and an annual levy must be paid in respect of their employment, which varies depending on the sector, of up to MYR1,850.

Employment passes and professional visit passes are generally applied for online on the Expatriate Services Division portal by the Malaysian employer or hosting company and are processed within five days of submission. The visit pass (for temporary employment) requires a lengthy procedure to be complied with before issuance and there is no specific time frame for issuance.

Foreign nationals who have worked in Malaysia under an employment pass for a minimum of three years can apply for a talent residence pass, which is issued to foreign nationals that are considered to be high-achieving individuals. Preference is given to industries which form part of the national key economic areas outlined by the government, including:

The talent residence pass is not tied to an employer and is valid for ten years. It is applied for online through the MyXPats centre and is processed within five days of submission.

Employees are only entitled to management representation or consultation if that is a term of their contract or a collective agreement.

The Industrial Relations Act provides for, among other things, security of employment. An employee can only be dismissed for a just cause or excuse, including:

The burden is on the employer to prove that the dismissal was with just cause or excuse.

Statutory Minimum Notice. Employees who are covered under the Employment Act are entitled to a statutory minimum notice of termination of:

For employees who are not covered under the Employment Act, there is no statutory requirement with regards to the notice period, and the notice would be subject to contract.

Severance Payment. Employees who are covered under the Employment Act are entitled to the following statutory minimum termination benefits which are pro-rated in respect of an incomplete year of service, calculated to the nearest month:

For employees who are not covered under the Employment Act, there is no statutory requirement with regards to the amount of severance payment required to be given, and the severance payment would be subject to contract. Currently, one month's salary for each year of service is considered fair and reasonable.

Grounds for Unfair Dismissal. Any employee can only be dismissed with "just cause or excuse". This means that the employer must have proper justification and reasons to terminate the employee. The dismissal must also be procedurally fair. Failure for the employer to show that the dismissal was with just cause or excuse would result in the court finding that the employee was unfairly dismissed.

Remedies. An employee dismissed without just cause or excuse can seek reinstatement and would be awarded either:

Backdated pay is limited to 24 months' wages. For probationers, backdated pay is limited to 12 months' wages. Where there are post-dismissal earnings, a percentage of those earnings, to be decided by the court, is deducted from the back wages given.

In respect of employees covered by the Employment Act, redundancies and lay-offs are regulated under the Employment (Termination and Lay-Off Benefits) Regulations 1980.

For employees not covered by the Employment Act, employers are advised to abide by the Code of Conduct for Industrial Harmony. While the Code is not legally binding, it is generally followed as a matter of custom and is persuasive on the Industrial Court.

Redundancy is viewed by the courts as the employer's last resort. The employer must consider any alternatives that may assist the situation, such as a reduction of overhead expenses, working hours, or other solutions, before embarking on redundancy. Selection for redundancy should be in accordance with the following established principles (Code of Conduct for Industrial Harmony):

Employees who are dismissed on redundancy grounds are entitled to termination notice (as prescribed in their contracts). Employees who are made redundant and are not covered by the Employment Act can be awarded fair severance payment. Whereas severance payment is required by law for employees who fall within the Employment Act (unless specific exceptions apply) and must be no less than the minimum prescribed under the Employment (Termination and Lay-Off Benefits) Regulations 1980.

An individual in Malaysia is chargeable to income tax on gross income in respect of gains or profits from an employment exercised in Malaysia. The rate of tax depends on the individual's residence status, which is determined by the duration of their stay in Malaysia as stipulated under section 7 of the Income Tax Act 1967. Generally, an individual is a tax resident if they reside in Malaysia for more than 182 days in a calendar year.

Tax resident employees must pay:

Employees (who are not eligible to be covered under the Invalidity Pension Scheme) must also make monthly contributions capped at MYR49.40 under the Employment Insurance System, which aims at offering protection to employees who have experienced loss of employment.

Non-residents do not qualify for tax relief or tax rebates and must pay tax at 30% on their Malaysian-source income, unless a tax relief is provided under a double tax treaty. For gains and profits from employment exercised in Malaysia, tax is deducted from the employee's salary and remitted to the tax authorities by the employer under the MTD scheme.

Non-tax resident employees who exercise employment in Malaysia for a period(s) which together do not exceed 60 days in a calendar year are exempt from tax. However, the income of a non-resident individual who performs independent services such as consultancy services is not exempted from tax.

Employers must make:

Under the MTD scheme, the employer must deduct and remit stipulated amounts of tax from the employee's emoluments to the Inland Revenue Board monthly. The amount to be deducted varies depending on multiple factors including, among others, the employee's residence status, marital status, contribution to retirement funds, number of dependents and so on.

A company, LLP or business trust, (collectively a business vehicle) whether resident or not, is assessable on income accrued in or derived from Malaysia. Effective from the year of assessment 2004, income derived from sources outside Malaysia and received in Malaysia by a resident business vehicle is exempted from tax, except for a resident business vehicle carrying on the business of banking, insurance or sea or air transport. A business vehicle is considered a resident in Malaysia if the control and management of its affairs are exercised in Malaysia.

A non-tax resident business is taxed on its income accrued in or derived from Malaysia only. The test of permanent establishment is relevant for the determination of the taxability of the business income in Malaysia if the business originates from a country that has concluded a double tax treaty with Malaysia where the parameters of permanent establishment is set out in the treaty. The Income Tax Act 1967 determines the taxation of businesses from countries not covered by a double taxation treaty, or where the treaty is silent on the treatment of permanent establishment by using the test of place of business.

The taxation system in Malaysia is territorial in nature. All income accrued in, derived from or received in Malaysia from outside of Malaysia, is liable to income tax. However, foreign sourced income received in Malaysia from outside Malaysia by any person (other than a resident company carrying on banking, insurance, air or sea transportation business that is taxed on world-income basis) is exempted from income tax in Malaysia.

The Malaysian tax regime comprises direct and indirect taxes. The direct taxes are income tax, real property gains tax, petroleum income tax and stamp duty.

Effective from 2016, the corporate tax rate for all companies was reduced from 25% to 24%. Companies with a paid-up capital of MYR2.5 million and below will be charged at a tax rate of 17% for the first MYR6 million of chargeable income and any subsequent chargeable income will be taxed at 24% provided that the company is controlled by (directly or indirectly) another company with a paid-up capital of more than MYR2.5 million and having a gross business income of less than MYR50 million.

A company carrying on petroleum upstream operations is subject to a petroleum income tax of 38%. Petroleum income derived from joint development areas is taxed at 0% for the first eight years of production, followed by 10% for the next seven years, and at 20% for subsequent years of production.

Stamp duty is imposed on certain instruments and documents under the Stamp Act 1949 (Stamp Act). The rate of stamp duty depends on the nature of the instrument involved and varies from a fixed charge, ad valorem or a certain percentage of the value of the subject matter of the transaction.

Since 1 September 2018, (GST has been replaced with sales and service tax (SST).

Under the Sales Tax Act 2018 (Sales Tax Act), sales tax is a single stage tax levied on taxable goods manufactured and sold, used or disposed of in Malaysia by a registered manufacturer or imported into Malaysia by any person. A manufacturer is liable to be registered under the Sales Tax Act, if the sales value of taxable goods manufactured exceeds MYR500,000 within 12 months. Sales tax is an ad valorem tax and different rates (between 5% and 10%) apply based on the group of taxable goods. Specific sales tax rates, which differ from sales tax rates on other taxable goods, are applicable on petroleum products.

Under the Service Tax Act 2018 (Service Tax Act), service tax is charged and levied on any taxable services provided in Malaysia by a registered person in carrying on his or her business. A taxable person listed under the Service Tax Regulations 2018 (Service Tax Regulations) providing taxable services listed under the same regulations is liable to register if the value of its taxable services for a period of 12 months exceeds the thresholds (as applicable) stipulated in the Service Tax Regulations. The prevailing service tax rate is 6%. Service tax is also imposed on the taxable services imported into Malaysia by non-service tax registered businesses with effect from 1 January 2019, exemption of service tax is available for intra-group services.

Effective from 1 January 2020, Digital Service Tax (DST) at the rate of 6% is imposed on any foreign service provider who provides any digital service that is delivered or subscribed over the internet or other electronic network and which cannot be obtained without the use of information technology and where the delivery of the service is essentially automated. Under the Service Tax Act and the Service Tax (Digital Services) Regulations 2019, a foreign service provider is liable to register if the total value of digital services exceeds MYR500,000, and is obliged to submit the relevant return and remit the DST collected to the Royal Malaysian Customs Department (RMCD) within the stipulated period.

Excise duty is levied on certain products manufactured in Malaysia for local consumption and some imported goods. Goods that are subject to excise duty include cigarettes, liquor and motor vehicles. The rates range from 5% to 105%, depending on the category of products.

Capital gains are not normally subject to tax in Malaysia. Under the Real Property Gains Tax (RPGT) Act 1976, RPGT tax is chargeable on capital gains arising from the disposal of real property and on the disposal of shares in a real property company (RPC). An RPC is a controlled company holding real property, or shares in another RPC, of which the defined value is not less than 75% of the value of the company's total tangible assets. The tax rates are as follows:

Individual states retain their powers to impose state tax, although this is uncommon. However, Sarawak and Sabah are imposing state sales tax on certain prescribed goods.

Malaysia imposes a single tier dividend system whereby income tax payable on the chargeable income of a company is the final tax in Malaysia. Any dividends distributed by the company are exempt in the hands of the shareholders. There is no withholding tax on Malaysian dividends.

Under the Income Tax Act, dividends received from foreign companies by a Malaysian company are taxable in Malaysia unless specifically exempted from income tax. Currently, such foreign dividends are exempted under schedule 6 of the Income Tax Act.

Interest paid to a foreign corporate shareholder is subject to a withholding tax of 15%, which can be reduced if one of the following applies:

Royalties paid to foreign corporate shareholders are subject to a withholding tax of 10%, which can be reduced if one of the following applies:

Thin capitalisation rules were introduced on 1 January 2009. However, their implementation and enforcement were deferred until 31 December 2017. With effect from 1 January 2018, the provision on thin capitalisation rules was abolished and a new method of earning-stripping rules introduced with effect from 1 January 2019 to control excessive deduction on interest expenses between associated persons. Under the earning-stripping rules, the interest deduction on loans between related companies within the same group is limited to a fixed ratio of 20% of a company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) subject to a threshold of MYR500,000. Foreign exchange rules will still be applicable. There is no group ratio rule or carry forward of unused and disallowed interest expense and no grandfathering provisions.

There are no controlled foreign company rules in Malaysia.

Malaysia has transfer pricing rules under the Income Tax Act and Transfer Pricing Rules 2012. The Malaysian tax authorities can disregard or vary any transaction that has the direct or indirect effect of altering the amount of tax payable. Under the Transfer Pricing Rules 2012, there are five prescribed methods in which an arm's length transfer price can be determined. A taxpayer will have to apply the most appropriate method in determining an arm's length transfer price based on the facts and circumstances of each particular transaction. However, these five methods are not exhaustive as the taxpayer can apply to the tax authority for other methods in order to provide the highest degree of comparability between the transactions.

Customs duties (including import duty and export duty) are imposed under the Customs Act 1967. The rates, and any applicable exemptions, are set by subsidiary legislation made under the Act and depend on the type of goods imported or exported. Malaysia has implemented seven bilateral free trade agreements (FTAs) and seven regional FTAs.

Most goods are subjected to import duties ranging from 0% to 60%. Higher rates apply to luxury goods, automobiles, tobacco, alcoholic beverages and processed and high-value food products.

Malaysia has entered into over 80 double tax treaties, of which 74 are in force, including with China, Japan, the UK, many EU countries and the US (although the US double tax treaty has limited provisions). A full list of the countries that have entered into double taxation agreements with Malaysia can be found on the Inland Revenue Board website (www.hasil.gov.my).

The relevant competition authority in Malaysia is the Malaysia Competition Commission (MyCC), which has been given wide powers of investigation and enforcement under the Malaysian Competition Commission Act 2010.

The Competition Act 2010 came into operation on 1 January 2012 and applies to any commercial activity (carried out by both local and foreign entities) within Malaysia, and outside Malaysia if it has an effect on competition in any market in Malaysia.

The Act prohibits any horizontal or vertical agreement between enterprises, insofar as the agreement has the object or effect of significantly preventing, restricting or distorting competition in any market for goods or services (Chapter 1 Prohibitions). In particular, the Act deems certain specified horizontal agreements (fixing prices, dividing markets, limiting production or supply, or rigging bids) as anti-competitive. Other agreements can infringe the Act if they have the effect of significantly preventing, restricting or distorting competition. The MyCC will not consider the effect of an agreement as significant if either the:

An enterprise that is a party to an anti-competitive agreement is potentially liable for the infringement and an associated financial penalty. However, the parties may avoid liability if all of the following apply:

These conditions are also the criteria on which the MyCC determines applications for exemptions to the anti-competitive agreements prohibition.

The Competition Act 2010 regulates unilateral conduct by enterprises that are in a dominant position in any market for goods or services. Whether an enterprise is dominant in a market depends on whether it possesses such significant power in a market to adjust prices or outputs or trading terms, without effective constraint from competitors or potential competitors.

However, the Act states that the market share of the enterprise is not conclusive as to whether that enterprise occupies a dominant position in that particular market. Conduct that can amount to an abuse includes:

There are both civil and criminal penalties for violations of the competition laws in Malaysia. The MyCC is empowered by the Competition Act to impose a financial penalty for an infringement of the prohibitions of up to 10% of the worldwide turnover of an enterprise over the period during which the infringement occurred. The Act contains leniency provisions that provide for up to a 100% reduction in applicable fines for enterprises that report to the MyCC for their involvement in agreements that are deemed to be anti-competitive and co-operate with the investigation. The MyCC can also accept voluntary undertakings from parties to cease infringements. A decision by the MyCC is subject to appeal to the Competition Appeal Tribunal, the decision of which is final and binding.

The Competition Act also stipulates that it is an offence to interfere with or obstruct the MyCC's investigation into any suspected infringement of the prohibitions. Offences include:

On conviction, a company can be fined up to MYR5 million for its first offence and up to MYR10 million for its second and subsequent offences. The chief executive officers, chief operating officers, directors, officers, managers and secretaries of the convicted company can also be criminally liable and be fined up to MYR2 million and/or imprisoned for up to five years.

The following are excluded from the Act:

Mergers and acquisitions are not subject to merger control under the Competition Act 2010 but based on publicly available information it is likely that the MyCC will be introducing merger control provisions in the future.

Currently, merger controls have been introduced to regulate enterprises carrying on commercial activities relating to aviation services under the Malaysian Aviation Commission (MAVCOM) Act 2015. Parties must notify the MAVCOM if a merger may result in a substantial lessening of competition within any aviation service market.

The MAVCOM is unlikely to investigate a merger situation unless either the:

The principal anti-corruption legislation in Malaysia is the Malaysian Anti-Corruption Commission Act of 2009 (MACC Act) which came into force on 1 January 2009. The MACC Act addresses offences such as soliciting/accepting bribes, offering/giving bribes, making a false claim, abuse of position, abetment, as well as criminal conspiracy to commit any of these offences. The MACC Act applies to public bodies and their officers and to the private sector. It also applies to bribery of local or foreign public officials.

On 5 April 2018, the Malaysian Government enacted additional corporate liability provisions on the offering or giving of bribes which has far-reaching implications on commercial organisations as well as on directors/senior management and people having control of such commercial organisations. This provision came into effect on 1 June 2020.

A commercial organisation that is charged with a corporate liability offence can successfully defend the charge if it is able to satisfy the court that it has in place adequate procedures to prevent persons associated with the organisation from undertaking such conduct. As such, the Guidelines on Adequate Procedures was issued to assist commercial organisations. It sets out the five main requirements of the adequate procedures that should be implemented to prevent the occurrence of corrupt practices in relation to business activities.

Bribes or "gratification" cover a wide range of benefits, with regulations and guidelines issued setting out accepted and prohibited conduct in relation to gifts (see below). The guidelines include a monetary limit on the value of gifts and business courtesies that may be provided to public servants. Generally, where gifts, travel, or entertainment exceed the monetary limits, approval from higher ranking officials or the department head is required before public servants can accept gifts or other business courtesies.

The Public Officers (Conduct and Discipline) Regulations 1993, as amended in 2002 specifically set out accepted and prohibited conduct regarding the acceptance of gifts, hospitalities and other courtesies by officers of the public service. The Regulations prohibit an officer of the public service from receiving, directly or indirectly, any gifts from any organisation, body or person(s) if the receipt of such gift is connected to, in any way, the execution of the officer's public duties and/or the type, amount or value of such gift is not commensurate with the overt reason for the gift.

The Guidelines for Giving and Receiving Gifts in the Public Service (No. 3 of 1998) issued by the Public Service Department on 15 August 1998 further describe specific circumstances in which gifts are allowed and in what form, allowable amounts and values of gifts, notification procedures, and, where necessary, the procedure to seek approval to receive gifts or business courtesies.

The Government Guidelines recognise that in certain circumstances it may be difficult, rude or embarrassing for an officer of a public service in the conduct of his/her duties, to refuse a gift. Therefore, the officer concerned can accept, but must report the following:

Where a gift is received outside the scope of the duties of the public officer, the question is whether the "type, amount and value of such gift" is commensurate with the intention under which the gift is made. The prescribed test is based on the value, occasion and purpose of the gift:

The Government Guidelines also state that, in any event, a gift, even if falling within the exempted provisions, can be considered as unacceptable if it was received with corrupt intent and in bad faith in return for a favour or a forbearance.

Any person who is found guilty of an offence under the MACC Act will, on conviction, be liable for:

The same penalties apply to those committing a conspiracy or abetment offence.

The penalty for the new corporate liability offence is ten times of value of the gratification or a minimum of MYR1,000,000 and/or imprisonment of up to twenty years.

In the event of a conviction, the court will also order the forfeiture of any property which is proved to be the subject matter of the offence, or to have been used in the commission of the offense.

Definition and Legal Requirements. A patent is a set of exclusive rights to an invention that arise on registration, granted for a limited time in exchange for full disclosure of the new invention. The owner of a patent has the exclusive right to exploit the patented invention and can transfer, assign or license the patent.

A patentable invention may relate to a product or a process. Under the Patents Act 1983 and Patent Regulations 1986, to qualify for a patent, an invention must:

Registration. The application for a grant of patent must be filed with the Intellectual Property Corporation of Malaysia (MyIPO). As Malaysia has acceded to the Patent Co-operation Treaty (PCT), which provides a unified procedure for filing patent applications to protect inventions globally. PCT applications can also be filed through MyIPO.

The MyIPO website (www.myipo.gov.my) provides guidance on the application procedure and necessary fees. The related forms are also available on the website.

Enforcement and Remedies. The owner of the patent has the right to institute court proceedings against any person who infringes the patent. The following remedies are available:

In the absence of an agreement to the contrary, joint owners can take action separately against infringers.

A licensee can institute proceedings against infringers if the owner of the patent refuses or fails to institute proceedings within three months of a request to do so from the licensee. However, the owner retains the right to join in those proceedings. A licensee may nonetheless be able to procure an injunction without waiting the three-month period if able to prove that immediate action is necessary to avoid substantial damage.

Length of Protection. Patents granted after 1 August 2001 are protected for 20 years from the date of filing an application for registration, provided they are renewed annually by paying a fee.

Patents granted before 1 August 2001 are protected for the longer of either 20 years from the date of filing an application or 15 years from the date the patent is granted.

Patent applications claiming priority on an international filing date, such as under the Paris Convention for the Protection of Industrial Property, are protected for 20 years from the international filing date.

Definition and Legal Requirements. A trade mark means any sign capable of being represented graphically, and distinguishing goods or services of one undertaking from those of other undertakings. A sign includes any letter, word, name, signature, numeral, device, brand, heading, label, ticket, shape of goods or their packaging, colour, sound, scent, hologram, positioning, sequence of motion or any combination thereof.

To register a trade mark under the Trade marks Act 2019, the trade mark must be a sign that is:

Trade marks cannot be registered if they:

Protection. Applications for registration of a trade mark must be made to MyIPO. The MyIPO website provides some general guidance on the application procedure for registration of a trade mark. The related fees and forms are also available on the website. As Malaysia has acceded to the Madrid Protocol, any applicants or registered proprietors of trade marks in Malaysia may begin using the system to get protection abroad by filing one international application through MyIPO.

While only a proprietor of a registered trade mark can claim for infringement of its trade mark under the Trade marks Act 2019, unregistered trade mark proprietors are protected by the common law tort of passing off.

Enforcement and Remedies. A registered proprietor of a trade mark can institute court proceedings to claim for infringement of a trade mark. Subject to any agreement to the contrary, a licensee can institute proceedings for trade mark infringement if the registered proprietor refuses or fails to institute proceedings within two months of being called on to do so. In such a situation, without leave of the court, the licensee cannot proceed with the action unless the registered proprietor is either joined as a claimant or added as a defendant. An exclusive licensee must, subject to the provisions of the licence be entitled to bring infringement proceedings against any other person other than the registered proprietor, in their own name.

If an unconnected trader uses a registered trade mark to deceive or confuse the public into believing that its goods are the trade mark proprietor's goods, resulting in damage to the trade mark proprietor, the proprietor has the right to claim for passing off. Both registered and unregistered trade mark proprietors can claim for passing off.

In enforcing trade mark rights, the following remedies can be sought:

Length of Protection and Renewability. Protection lasts for ten years from the date of registration. This can be extended indefinitely for additional ten-year periods on subsequent payments of the renewal fees.

Definition and Legal Requirements. An industrial design consists of aesthetic features applied to an article, giving an attractive quality to the goods. A registered industrial design gives the registered proprietor exclusive rights to:

Under the Industrial Designs Act 1996, to qualify for registration, an industrial design must:

A design cannot be registered if it is:

Registration. Applications to register an industrial design must be made to MyIPO. The MyIPO website provides general guidance on the registration procedure, related fees and forms.

Enforcement and Remedies. The registered design holder can institute civil proceedings for infringement of its registered design. Proceedings must be brought within five years of an act of infringement.

An assignee, licensee or beneficiary can institute proceedings against infringers if the registered owner refuses or fails to institute proceedings within three months of a request to do so, without prejudice to the registered owner's right to join in such proceedings.

Remedies include:

The court may decline to award damages or an account of profits if the defendant was not aware that the industrial design was registered at the time of the infringement, and can show that they had taken all reasonable steps to ascertain whether the industrial design had been registered.

Length of Protection and Renewability. Protection lasts for five years from the date of filing an application for registration. Under amendments to the Industrial Designs Act 1996 that came into effect on 1 July 2013, this period of protection can be extended for four further periods of five years each.

Definition and Legal requirements. Malaysia does not provide any specific rights for unregistered designs. However, designs derived from artistic works and articles that are made by industrial processes or means are protected under section 13B of the Copyright Act 1987.

Enforcement and Remedies. The enforcement and remedies are the same as for copyright under the Copyright Act 1987 (see below, Copyright).

Length of Protection. Where section 13B of the Copyright Act 1987 is applicable, the protection of copyright for such designs is 25 years from when the articles are first marketed.

Definition and Legal Requirements. Copyright arises automatically on creation of a work capable of being copyrighted. The following original works qualify for copyright protection:

Other derivative works of original works such as translations, adaptations and arrangements are also eligible for copyright.

Copyright affords the copyright owner the exclusive right to control the reproduction, the communication to the public, the performance, showing or playing to the public, the distribution of copies to the public and/or the commercial rental to the public of the copyrighted work in Malaysia. Copyright initially vests in the author of the work, although the copyright is deemed to be transferred to a person who commissioned the work or the author's employer if made in the course of employment.

Copyright protection arises automatically on creation of the work. Malaysia is party to the Berne Convention for the Protection of Literary and Artistic Works 1886, giving citizens of participating countries the same rights in all relevant countries.

Since 1 March 2012, amendments to the Copyright Act 1987 have provided for a new voluntary notification of copyright system. Copyright holders can elect to register their works with MyIPO. While not currently available, eventually the public will be allowed to perform searches and examination of the copyright register.

Enforcement and Remedies. The owner of the copyrighted work can institute civil proceedings against copyright infringers. An exclusive licensee generally has the same rights of action and is entitled to remedies as if the licence had been an assignment (except against the copyright owner).

The author of a copyrighted work (who is not necessarily the copyright owner) also has moral rights such as the right to prevent changes to the work that would adversely affect the author's honour or reputation, and the right to be identified as the author of the work.

Performers of live performances are also afforded certain performer's rights, which include the exclusive right to control the communication to the public of a performance, or a video recording of the performance, subject to exceptions such for as a sound recording of a performance made solely for the purpose of private and domestic use.

In a claim for copyright infringement, the court can make orders for:

Length of Protection and Renewability. Protection for literary, musical or artistic works lasts for the life of the author plus 50 years. Protection for published editions, films, sound recordings, broadcasts and performances last for 50 years from the beginning of the calendar year after which the work was first published or performed.

Other IP protection is given to:

There is no general legislation regulating marketing agreements. Applicable requirements will depend on each specific arrangement (agency, distribution and franchising) and whether the product is a regulated product. General competition law considerations will be applicable for exclusivity clauses (see Question 28).

There is no specific legislation regulating agency agreements.

The key legislation that governs environmental matters is the Environmental Quality Act 1974 (EQA 1974) and the regulations made thereunder, which is aimed at preventing, abating, controlling pollution and the enhancing of the environment. The EQA 1974 incorporates provisions in relation to the licensing requirements for the abatement and control of pollution, emissions and waste and assessments of environmental impact when it comes to the undertaking of certain prescribed activities.

There are also environmental, social and governance (ESG) requirements that must be observed by public listed companies in Malaysia, such as the inclusion of sustainability statements in the annual reports of companies that are listed on the main market and ACE Market. This is essentially a narrative statement of the company's management on material, economic, environmental and social risks and opportunity. In their sustainability statement, main market listed issuers are required to include matters on governance structure, scope of the sustainability statement, material sustainability matters and management approach.

Distribution agreements may be regulated if they relate to regulated products, including (but not limited to) the following:

Regulations and requirements may be imposed by laws relating specifically to the goods concerned.

A franchise must be registered under the Franchise Act 1998. Among others, the Franchise Act 1998 regulates:

There is no comprehensive legislation governing e-commerce in general. Specific areas of e-commerce are governed by the:

The Consumer Protection (Electronic Trade Transactions) Regulations 2012 sets out regulations relating to the:

In addition to the Advertising Code, there is also the Malaysian Communications and Multimedia Content Code (Content Code) drawn up by the Communications and Multimedia Content Forum (CMCF). The Content Code sets out the guidelines and procedures for good practice and standards of content disseminated to audiences by service providers in the communications and multimedia industry. The Content Code applies to all content made available in the content industry in the networked medium as defined in the Content Code and under the Act, including advertisements conveyed by or through any signage, image or sound disseminated through electronic media. The provisions in the Content Code therefore apply to advertising that is communicated by way of broadcast or any electronic medium.

There are no specific statutes relating to advertising. However, print advertisements (such as advertising in leaflets, circulars, posters, billboards, cinemas, advertising claims on packs, labels and point of sale material) in Malaysia are regulated under the Malaysian Code of Advertising Practice (Advertising Code). The Advertising Code has been drawn up by organisations representing advertisers, advertising agencies and the media, and is administered by the Advertising Standards Authority of Malaysia (ASA).

Compliance with the Advertising Code is voluntary. However, while the Advertising Code does not have the force of law, breaching its provisions can attract sanctions and/or other practical/administrative consequences such as the withholding of advertising space or time by media owners and/or adverse publicity (for example, publishing details of the outcome of investigations/disputes).

The Trade Descriptions (Cheap Sale Price) Regulations 1997 requires a written notice to be served on the controller, deputy controller or assistant controller (appointed under the Trade Descriptions Act 2011) for any sale or offer for sale of goods at a cheap sale price/discount/best buy/best price/cheaper price or any expression which indicates that the price of the goods offered is less than the price at which the goods or goods of the same description were previously supplied or offered to be supplied.

Sales promotions which involve prize draws and competitions must take note of the Common Gaming Houses Act 1953. The definition of "gaming" includes the playing of any game of chance or of mixed chance and skill for money or money's worth. If the sales promotions involving free prize draws and competitions fall within that definition, they will be subject to gaming laws and regulations.

The Malaysian Personal Data Protection Act 2010 (PDPA) came into operation on 15 November 2013.

The purpose of the PDPA is to regulate the processing of personal data, including sensitive personal data, by providing safeguards to protect the interests of data subjects. The Minister can, on the recommendation of the Commissioner, by order published in the Gazette, specify a class of data users who would be required to register themselves with the Commissioner under the PDPA.

Information relating to customers of banking and financial institutions is also protected under the Financial Services Act 2012.

The PDPA equally applies to consumer data, there is no distinction between data protection and consumer privacy laws. There is no explicit right to privacy in Malaysia, except for very limited cases relating to morality and modesty of women.

Product liability is governed by the Consumer Protection Act 1999, which provides that the producer or importer of a product is liable for any damage caused wholly or partly by a defect in the product. This is the same as the common law position on manufacturer's liability.

Main Activities. The Malaysia Competition Commission (MyCC) was established on 1 April 2011 with the purpose of enforcing the Competition Act 2010 (CA 2010). The Competition Commission safeguards the process of free and fair competition in commercial markets for the benefit of consumer welfare, efficiency of enterprises and the development of the economy as a whole.

Main Activities. The Malaysian Department of Environment (DOE) is responsible for ensuring sustainable development and operates at the federal and state level. The DOE is tasked with issuing licences for emissions or deposits into the environment of pollutants and notices or enforcement actions for non-compliance with the terms of such licences or for contravention against any applicable laws.

Main Activities. The Central Bank of Malaysia (BNM) is a statutory body governed by the Central Bank of Malaysia Act 2009. Its role including promoting monetary and financial stability by providing a conducive environment for the sustainable growth of the Malaysian economy. In Malaysia, the BNM is the regulator for the financial services and the insurance industry.

Main Activities. The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). It is a self-funded statutory body that is responsible for regulating and developing the capital market in Malaysia. Some of its powers include rule-making, enforcing regulations pertaining to the capital market, ensuring sustainable market growth and development, supervising capital market activities and market institutions including the exchanges, clearing houses and registered market operators, and regulating all entities and persons licensed under the Capital Markets and Services Act 2007.

Main Activities. The Malaysian Communication and Multimedia Commission (MCMC) is the regulatory body set up under the Malaysian Communications and Multimedia Commission Act (1998). The aim of the MCMC is to regulate the communications and multimedia industry in Malaysia. This includes the administration of access to communications and multimedia services, ensuring transparency in the regulatory process and facilitating fair competition and efficiency in the industry. It is also the licencing authority for network facilities and services providers and application and content application services providers.

There is nothing else that is important relating to doing business in Malaysia.