ESG Global Vision

Legislation

In force

Individuals, any commercial organisation and any persons associated with that organisation.

• The main objectives of the MACC Act 2009 are: (i) to promote integrity and accountability of public and private sector administration by constituting an independent and accountable anti-corruption body; and (b) to educate public authorities, public officials and members of the public about corruption and its detrimental effects on public and private sector administration and on the community.
• There are four (4) main offences stipulated in the MACC Act 2009 which are as follows:

1. 1. Soliciting/Receiving Gratification (Bribe) [section 16 & 17(a) MACC Act 2009];
   2. Offering/Giving Gratification (Bribe) [section 17(b) MACC Act 2009];
   3. Intending to Deceive (False Claim) [section 18 MACC Act 2009]; and
   4. Using Office or Position for Gratification (Bribe) (Abuse of Power/Position) [section 23 MACC Act 2009].

• The MACC Act 2009 was amended, amongst others, to introduce corporate liability provision for bribery and corruption under section 17A, which came into effect on 1 June 2020. Section 17A (1) of the MACC Act 2009 now addresses corporate liability for corruption where directors and senior management will be held personally liable for acts of corruption committed by the organisation, either by personnel or parties acting on behalf the organisation. Penalties include fines up to RM1 million and/or prison sentences of up to 20 years for those in charge of the company.

Legislation

In force

Reporting institutions as listed out in the First Schedule of AMLA, such as a licensed bank, licensed investment bank, licensed insurer carrying on life business and an advocate and solicitor as defined in the Legal Profession Act 1976.

• The AMLA provides for the offence of money laundering, the measures to be taken for the prevention of money laundering and terrorism financing offences and to provide for the forfeiture of property involved in or derived from money laundering and terrorism financing offences, as well as terrorist property, proceeds of an unlawful activity and instrumentalities of an offence, and for matters incidental thereto and connected therewith. The enforcement of the AMLA is undertaken by various ministries/agencies based on the predicate offences under their respective purview.
• Under section 14(1) of AMLA, a reporting institution (i.e. any person, including branches and subsidiaries outside Malaysia of that person, who carries on any activity listed in the First Schedule of the Act) shall promptly report to the competent authority:

1. 1. any transaction exceeding such amount as the competent authority may specify;
   2. any transaction where the identity of the person involved, the transaction itself or any other circumstances concerning that transaction gives any officer or employee of the reporting institution reason to suspect that the transaction involves proceeds of an unlawful activity or instrumentalities of an offence;
   3. any transaction or property where any officer or employee of the reporting institution has reason to suspect that the transaction or property involved is related or linked to, is used or is intended to be used for or by, any terrorist act, terrorist, terrorist group, terrorist entity or person who finances terrorism.

• Section 56(1) of AMLA provides that where a property is frozen or seized and there is no prosecution or conviction for an offence of money laundering or a terrorism financing offence, the Public Prosecutor may, within 12 months of the date of the freeze or seizure or the date of the freezing, apply to a High Court judge for an order of forfeiture of that property if he is satisfied that such property is:

1. 1. the subject matter or evidence relating to the commission of the offence;
   2. terrorist property;
   3. the proceeds of an unlawful activity; or
   4. the instrumentalities of the offence.

• To succeed in a civil forfeiture under section 56 of AMLA, the prosecution must first establish the predicate offence of money laundering or terrorism financing on the balance of probabilities (as provided under section 56(4) of AMLA. If the prosecution succeeds in satisfying both these requirements, the burden then shifts to the respondent to show otherwise, for instance, that the property was received for valuable consideration in good faith.

Guidelines

In force

All listed companies. Certain policies in the MCCG are also applicable to Large Companies (companies on the FTSE Bursa Malaysia Top 100 Index or companies with market capitalisation of RM2 billion and above, at the start of the companies’ financial year).

• Under rule 15.25 of the Main Market Listing Requirements issued by Bursa Malaysia, listed companies must ensure that its board of directors provides an overview of the application of the principles set out in the MCCG, in its annual report. In addition, listed companies must disclose the application of each practice set out in the MCCG during the financial year, to Bursa Malaysia in a prescribed format and announce the same together with the announcement of the annual report. 
• The MCCG addresses the urgent need for companies to manage ESG risks and opportunities, with the introduction of new best practices that emphasise the need for collective action by boards and senior management of the PLC. The global commitment and acceleration of efforts to transition towards a net zero economy has resulted in demand for greater action on the part of corporates. The SC’s review of sustainability statements by large listed companies found that some have begun to address climate-related risks but more can and needs to be done. The MCCG also addresses the participation of women on boards. To accelerate the progress of women participation on boards, the MCCG 2021 recommends all listed companies to have boards that comprise at least 30% women directors.

Legislation

In force

Any employee (as included in any category in the First Schedule of the EA to the extent specified therein or in respect of whom the Minister makes an order) and employers. For example, workers covered under the EA are all workers whose earnings do not exceed RM2,000.00 a month and all manual workers irrespective of their earnings.

* This legislation applies to Peninsular Malaysia and the Federal Territory of Labuan only.

• The EA is the fundamental employment legislation in this country prescribing the statutory minimum standards of terms and conditions of employment.

• On 25 October 2021, the Human Resources Minister, Datuk Seri M. Saravanan, tabled the Employment (Amendment) Bill 2021 to amend the EA. The proposed amendments, among others, are to bring the EA in line with the standards and practices required by the Trans-Pacific Partnership Agreement, the Malaysia-United States Labour Consistency Plan and the International Labour Organisation. Some of the general amendments under such Amendment Bill is that the general penalty for offences has been increased from RM10,000.00 to RM50,000.00. The Amendment Bill also aims to create a new offence of “forced labour”. “Forced labour”, as provided in the Amendment Bill, is where any employer threatens, deceives, or forces an employee to do any activity, service or work and prevents the employee from leaving before the activity, service or work is done. The offence carries a penalty of a fine up to RM100,000.00 or to imprisonment for a term not exceeding two years or both.

Legislation

In force

Any individual or company in Malaysia.

• This EQA relates to the prevention, abatement, control of pollution and enhancement of the environment, and for purposes connected therewith.

• This EQA instates a Director General of Environmental Quality, responsible for amongst others, coordinating all activities related to the discharge of wastes into the environment, being in charge of pollution control and with the objective of enhancing environmental quality. It further refers to standards and criteria for the protection of the environment as well as the control of the volume, types, constituents and effects of wastes, discharges, emissions or other sources of pollution which impact or may impact the quality of the environment.

• The EQA requires the Director General of Environmental Quality to publish an annual report on environmental quality not later than 30th September of the following year and such other reports and information with respect to any aspect of environmental protection by the Director General of Environmental Quality [section 3(1)(i) EQA].  

• The EQA also includes the need to provide information and education to the public regarding the protection and enhancement of the environment [section 3(1)(l) EQA], the power to inspect facilities [section 38 EQA], and applicable penalties.

Guidelines

In force

Companies which hold a Capital Markets Services Licence granted by the SC pursuant to section 61 of Capital Markets and Services Act 2007 (“CMSL Holder”) and does not apply to an individual. 

• Effective 1 July 2022, the board of a CMSL Holder must undertake the necessary measures to ensure the board comprises at least 30% women directors.

• A director of a CMSL Holder must not be an active politician (i.e. a person who is a Member of Parliament, State Assemblyman or holds a position at the Supreme Council, or division level in a political party).

Legislation

In force

Persons with disability

This legislation safeguards the rights and interest of persons with disability to be entitled to a barrier-free and disability friendly environment to enable them have access to building, roads and other social amenities and equipment to promote their mobility.