It’s that midpoint in the year again! My clients who run businesses are checking in with us to review their legal standing, checking risks and compliance with relevant laws and regulations. Here are a few key areas to focus on:
• Review Changes in Laws and Industry Specific Regulations
Ensure your business complies with any new laws or regulations that may have been implemented in the first half of the year. This can include environmental regulations, health and safety standards, or financial reporting requirements. There has been a couple of new legislations this year for example: Companies (Amendment) Act 2024, the amendments to the Occupational Safety and Health Act 1994 (OSHA) and the repeal of the Factories and Machinery Act 1967 and the new mandatory e-invoicing requirements under LHDN.
• Check Your Data Protection and Privacy Compliance
There are some key changes underway for PDPA in Malaysia. Some of which include the introduction of mandatory data breach notifications, which will require companies to report any data breaches to the Personal Data Protection Department within 72 hours. There are also talks on possibly increasing fines and penalties for companies found to be misusing data.
• Contracts and Agreements Renewals and Expirations
Do review all contracts and agreements to ensure that they are up-to-date and renegotiate terms if necessary. Pay special attention to any contracts that are up for renewal or nearing expiration.
Ensure that your business is meeting its obligations under all current contracts and that your counterparties are also complying with their obligations and evaluate any new partnerships or agreements formed in the first half of the year to ensure they align with your business goals and legal standards.
• Dispute Resolution
Review any ongoing litigation or disputes. Assess the potential risks and costs associated with these legal issues and develop strategies to resolve them efficiently. Have a discussion with your account department to assess if there are any outstanding debts that have not been paid. There is a higher likelihood of you recovering debts if you embark on a recovery process quickly.
• Employment Practices
Conduct an audit of your employment practices to ensure compliance with labour laws. Pursuant to Sections 60P and 60Q of the Employment Act 1955, workers in Malaysia are now able to apply to their employers for flexible working arrangements based on time, days, and location of work.
By focusing on these areas, businesses can proactively manage their legal risks, maintain compliance, and position themselves for success.