Regional Round-Up: Malaysia Q4 2023 (Year in Review Edition)

Following the transition in government at the close of 2022, 2023 paved the way for a return to normalcy for the nation after the COVID-19 pandemic and ushered in fresh direction and policies from the new government. These were introduced in lockstep with the Government’s aspiration to shift to a high value green economy and position itself as a digital economy powerhouse.

In 2023, generative AI also began to make its presence felt with its transformative potential prompting the Government to reassess existing regulatory frameworks and establish a regulatory environment that would not only encourage innovation, but also safeguards against potential risks and ethical concerns associated with the widespread adoption of generative AI.

Notable key developments and trends from 2023 include:

• new General Code of Practice of Personal Data Protection under the Personal Data Protection Act 2010;

• amendments to the LEAP Market Transfer and Recognised Approved Adviser Framework;

• launch of Malaysia’s National Energy Transition Roadmap;

• revised consent and disclosure requirements for customer information under new Policy Document on Management of Customer Information and Permitted Disclosures for financial institutions;

• additional requirements under Revised Policy Document on Risk Management in Technology for financial institutions; and

• new Guidelines on Technology Risk Management for the capital markets sector; and

• enforcement of prohibition against forced labour under the Employment Act 1955.

On the dispute resolution front, the Malaysian High Court in Elisabeth Regina Maria Gabriele Von Pezold & Ors v Republic of Zimbabwe [2023] MLJU 2657, for the first time in Malaysia, recognised a foreign award made by an arbitral tribunal established under the Convention on the Settlement of Investment Disputes between States and National of Other States and thereby reaffirmed Malaysia’s continued commitment in respecting the principles of international law and comity. In another landmark ruling in the case of Wiramuda (M) Sdn Bhd v Ketua Pengarah Hasil Dalam Negeri [2023] 4 MLJ 753, the Malaysian Federal Court held that taxing the compensation received in respect of compulsorily acquired lands is unconstitutional as it would deprive the landowner of their the same deprives the landowner’s right to adequate compensation guaranteed under Article 13(2) of the Malaysian Federal Constitution.