Reed Smith Client Alerts

Amendments to Malaysia’s anti-corruption law were recently passed by the lower house of the Malaysian parliament. The main thrust of these amendments, which are set out in the Malaysian Anti-Corruption Commission (Amendment) Bill 2018, is the introduction of corporate liability into Malaysian anti-corruption laws. Previously, the Malaysian Anti-Corruption Commission Act (MACCA), which is the primary anti-corruption legislation in Malaysia and was enacted in 2009, was confined to individual liability for corruption offenses.

Authors: Calvin Chan

Malaysia city view

Section 17A of MACCA

These corporate liability provisions can be found in the new section 17A of MACCA. Notably, they provide that the corrupt acts of persons associated with a commercial organization will be attributed to that commercial organization. Associated persons include directors, partners, employees and third-party service providers of the commercial organization. The definition of commercial organization similarly has a wide ambit, and includes Malaysian companies and partnerships whether conducting business in Malaysia or outside of Malaysia, as well as foreign companies conducting business in Malaysia.