Quick Bites: Latest Regulation Updates

The implementation of LINDUNG 24 Jam (Skim Kemalangan Bukan Bencana Kerja) has undergone a significant policy reversal within weeks of its implementation. Initially introduced as a mandatory social security scheme for Malaysian employees effective 1 June 2026, the Government has now made participation voluntary following Cabinet approval and public feedback.

SVDP 2026 allows eligible instruments executed between 1 January 2023 and 31 December 2025 to be stamped without late penalties, provided both stamping and payment are completed by 31 December 2026.

The implementation of Malaysia's e-Invoice initiative enters another important stage on 1 July 2026. Contrary to popular belief, this is not a new implementation phase. Rather, it is a special concessionary implementation date introduced by the Inland Revenue Board (LHDN) for the smallest group of businesses within the ≤RM5 million turnover category. Many businesses mistakenly believe that all companies with annual turnover below RM1 million are automatically exempt. This is incorrect. While an annual turnover of RM1 million or below is the starting point, companies must satisfy all exemption conditions before they qualify to remain exempt.

Malaysia has significantly strengthened its Beneficial Ownership (BO) reporting framework under Division 8A of the Companies Act 2016 (via the Companies (Amendment) Act 2024) and the revised Guidelines for the Reporting Framework for Beneficial Ownership of Companies issued by SSM. Companies must now identify the natural person who ultimately owns or controls the company, even where ownership is held through nominees, trusts or multiple corporate layers.

Malaysia has introduced significant changes to its expatriate employment framework effective from 1 June 2026. The reforms aim to encourage workforce localisation, ensure expatriates occupy higher-value positions, and strengthen knowledge transfer to Malaysian employees. Organisations employing expatriates or foreign knowledge workers (FKWs) should review their workforce planning, compensation structures, and succession strategies to ensure compliance and minimise operational disruptions.

The Companies Commission of Malaysia (SSM) has issued a Consultative Document proposing amendments to the Companies Act 2016 to introduce a formal sustainability reporting framework for non-listed companies (NLCos). While not yet law, this proposal signals the future direction of corporate reporting in Malaysia — and deserves the immediate attention of directors, accountants, business owners and management teams.

Recently, many HR departments have received enquiries from employees who were surprised to receive a CP500 (Notis Bayaran Ansuran) from the Inland Revenue Board of Malaysia (LHDN). Some employees assumed it was a mistake because they are already paying tax through Monthly Tax Deductions (PCB), while others were concerned about outstanding tax liabilities.

From 15 June 2026, Employer Circular No. 2/2026 introduces stricter controls over levy-based training grants — reshaping how more than 100,000 registered employers and approximately 4.8 million employees across Malaysia access workforce development funding.

The upcoming implementation of PERKESO's Skim Kemalangan Bukan Bencana Kerja (SKBBK), commonly referred to as "LINDUNG 24 JAM," is set to become one of the most significant payroll and statutory compliance developments affecting Malaysian employers in 2026. It will impact almost all employers and employees covered under the Employees' Social Security Act 1969 (Act 4).

Malaysian businesses are increasingly being held accountable for basic workplace compliance obligations that are visible, practical, and enforceable during inspections.

On 1 May 2026, Prime Minister Datuk Seri Anwar Ibrahim announced several major workforce and social protection initiatives during the National Labour Day celebration. These measures form part of the government's broader MADANI agenda to strengthen worker welfare, improve labour participation, and modernise Malaysia's social security framework.

The Royal Malaysian Customs Department (RMCD) has issued Public Ruling No. 1/2026, effective 31 March 2026, to standardise how foreign currency transactions are converted into Malaysian Ringgit (MYR) for Sales Tax and Service Tax (SST) purposes. This ruling replaces previous informal practices with clear rules on exchange rate sources, timing, consistency, and invoice requirements, signalling a move towards stricter compliance and audit readiness.

On 13 April 2026, SSM launched the Kempen Pemulihan Serah Simpan Dokumen Statutori — a structured, time-bound campaign designed to address a persistent compliance gap across Malaysia's corporate landscape. Many companies, particularly SMEs, have accumulated outstanding statutory filings over the years. These backlogs result in escalating compound penalties and potential legal exposure, which often discourages companies from taking corrective action altogether.

The Gig Workers Act 2025 (Act 872), recently came into enforcement, introduces a structured legal framework for non-traditional work arrangements in Malaysia. While gig workers are not classified as employees, businesses engaging them now carry clearer responsibilities and potential liabilities.

The Gig Workers Act 2025 (Act 872), recently came into enforcement, introduces a structured legal framework for non-traditional work arrangements in Malaysia. While gig workers are not classified as employees, businesses engaging them now carry clearer responsibilities and potential liabilities.

Section 17A of the Malaysian Anti-Corruption Commission Act 2009 introduces corporate liability for corruption in Malaysia. A company can be held legally liable if corruption is committed for its benefit — applies regardless of whether top management had direct involvement. Focus shifts from individual wrongdoing to organisational accountability.

Section 17A of the Malaysian Anti-Corruption Commission Act 2009 introduces corporate liability for corruption in Malaysia. A company can be held legally liable if corruption is committed for its benefit — applies regardless of whether top management had direct involvement. Focus shifts from individual wrongdoing to organisational accountability.

Learn how to assess your organisation’s E-Invoicing audit readiness with this practical quick bite guide. It highlights the key areas LHDN may review during compliance checks, including governance responsibilities, system integration, data accuracy, internal controls, and proper e-Invoice issuance processes, helping businesses strengthen compliance and reduce potential audit risks.