How Business Comply with Law in Malaysia?

Company law in Malaysia governs the formation, operation, and dissolution of corporations in the country. The main legislation governing companies is the Companies Act 2016, which replaced the previous Companies Act 1965. The law sets out the legal requirements for incorporating a company, the duties and responsibilities of directors and shareholders, and the rules for corporate governance, accounting, and auditing. It also provides for the protection of shareholders’ rights and interests, and the regulation of mergers and acquisitions, as well as insolvency and winding-up procedures. Companies in Malaysia must comply with the provisions of the Companies Act and other relevant laws and regulations, and failure to do so can result in penalties or legal action.

Tax law in Malaysia regulates the taxation of businesses operating in the country.

Employment law in Malaysia governs the relationship between employers and employees in the country.

1. The main legislation regulating employment is the Employment Act 1955, which sets out the minimum standards for employment such as working hours, overtime pay, rest days, and annual leave entitlements. The act also covers termination of employment, retrenchment, and the rights of employees in case of unfair dismissal.

2. Other important legislation includes the Industrial Relations Act 1967, which provides for the resolution of trade disputes and the formation of trade unions, and the Minimum Wages Order 2020, which sets the minimum wage rates for different sectors and regions.

3. The government also provides for various social security schemes and employee benefits, such as the Employees Provident Fund (EPF) and the Social Security Organization (SOCSO), to protect the welfare of employees.

Consumer protection law is aimed at safeguarding the interests and welfare of consumers in the country.

1. The main legislation governing consumer protection is the Consumer Protection Act 1999, which sets out the legal framework for consumer protection and establishes the Malaysian Consumer Tribunal to hear complaints and disputes between consumers and businesses. The act covers various aspects of consumer protection such as the provision of accurate and transparent information, product safety and quality standards, and fair pricing and marketing practices.

2. Other important legislation includes the Sale of Goods Act 1957 and the Hire-Purchase Act 1967, which provide additional protection to consumers when purchasing goods or services on credit.

3.The government also provides for various regulatory bodies such as the Ministry of Domestic Trade and Consumer Affairs and the Malaysian Communications and Multimedia Commission to ensure compliance with consumer protection laws and regulations.

Intellectual property law is aimed at protecting the rights of creators and innovators in the country. The main legislation governing intellectual property is the Intellectual Property Corporation of Malaysia (MyIPO) Act 2002, which provides for the registration and protection of patents, trademarks, industrial designs, and copyrights. The act aims to promote innovation and creativity by providing legal protection and exclusive rights to the owners of intellectual property.

Other important legislation includes the Copyright Act 1987, which sets out the legal framework for copyright protection, and the Patents Act 1983, which provides for the registration and protection of patents. 

The government also provides for various regulatory bodies such as MyIPO and the Intellectual Property Court to ensure compliance with intellectual property laws and regulations.  

The Malaysian government is committed to protecting intellectual property rights and encourages the development and commercialisation of innovative and creative works.

In order to conclude, complying with business laws in Malaysia is crucial for any organisation that wants to operate legally and ethically. By following these laws and regulations, businesses can avoid penalties, litigation, and damage to their reputation. Compliance also fosters trust with customers, employees, and stakeholders, and promotes a level playing field for all businesses in Malaysia. Remember to stay informed about changes to the law, seek professional advice with our lawyers when needed, and adopt a culture of compliance in your organization. By doing so, you can run a successful and responsible business that contributes to the country’s economic growth and development.