Anti-Bribery Policy (Malaysia)
ANTI-BRIBERY AND ANTI-CORRUPTION (ABAC) POLICY
[Company Name] (SSM No. [Registration Number])
Board Approved: [Board Approval Date] | Effective: [Effective Date] | Policy Owner: [Policy Owner]
Issued pursuant to Section 17A, Malaysian Anti-Corruption Commission Act 2009 (MACC Act 2009, Act 694)
MACC Guidelines on Adequate Procedures (T.R.U.S.T. Principles)
1. BOARD COMMITMENT — ZERO TOLERANCE
The Board of Directors of [Company Name] is absolutely committed to conducting all business activities with integrity and in full compliance with the Malaysian Anti-Corruption Commission Act 2009 (MACC Act 2009). [Company Name] maintains a zero-tolerance policy towards all forms of bribery, corruption, and unethical conduct by any director, employee, or associated person, anywhere in the world.
This policy reflects the Board's commitment under the 'Top-Level Commitment' principle of the MACC Guidelines on Adequate Procedures and is approved at the highest level of governance.
2. SCOPE AND APPLICATION
This policy applies to: [Covered Persons]
Under Section 17A of the MACC Act 2009, [Company Name] is liable for corrupt acts committed by any associated person — including employees, agents, subsidiaries, and joint venture partners — for the purpose of obtaining or retaining business for the company. This policy and the associated procedures constitute 'adequate procedures' for the purposes of the Section 17A(4) defence.
3. ABSOLUTE PROHIBITIONS
No director, employee, agent, or associated person of [Company Name] shall, directly or indirectly, offer, give, receive, or solicit any gratification — as defined in Section 3 of the MACC Act 2009, including any gift, loan, fee, reward, commission, or advantage — to or from any person, whether in the public or private sector, in Malaysia or abroad, in order to:
(a) Obtain or retain business or a business advantage;
(b) Improperly influence a decision or action by any person in their official capacity;
(c) Reward past corrupt acts.
Absolute prohibitions: [Gift Prohibitions]
Facilitation payments — payments to government or customs officials to expedite routine governmental actions — are absolutely prohibited under this policy and under the MACC Act 2009, regardless of amount or local custom.
4. GIFTS AND HOSPITALITY GUIDELINES
Permissible gift threshold: [Gift Threshold] per occasion from a single source. Gifts received above this threshold must be declared to [Policy Owner] and recorded in the company's Gift Register.
Permissible hospitality / entertainment threshold: [Hospitality Threshold]
Gift register maintained: [Gift Register]. All gifts and entertainment given or received must be recorded in the Gift Register regardless of value.
5. RISK ASSESSMENT
Identified high-risk business activities requiring enhanced due diligence and monitoring: [High Risk Activities]
[Company Name] conducts periodic anti-bribery risk assessments under the 'Risk Assessment' T.R.U.S.T. principle, reviewing the company's business activities, geographies, and third-party relationships for bribery risk exposure. Risk assessment findings are reported to the Board's Audit Committee.
6. REPORTING SUSPECTED BRIBERY
Any director, employee, or associated person who suspects or becomes aware of a violation of this policy or of the MACC Act 2009 must report immediately to:
Internal reporting channel: [Reporting Channel]
MACC hotline: 1-800-88-6000 (toll-free, confidential)
Reports may be made anonymously. All reports will be treated in strict confidence. No person who makes a good-faith report will be subject to retaliation, consistent with the Whistleblower Protection Act 2010 (Act 711).
7. TRAINING AND REVIEW
Anti-bribery training frequency: [Training Frequency]. All covered persons must complete anti-bribery training and acknowledge receipt of this policy.
This policy will be reviewed: [Policy Review Period].
APPROVED BY THE BOARD OF DIRECTORS
Signature: _________________________ Date: [Board Approval Date]
Name: _________________________ Designation: Chairman / Managing Director
Chairman / Managing Director
________________
Signature
What Is a Anti-Bribery Policy (Malaysia)?
An Anti-Bribery Policy in Malaysia establishes the rules and responsibilities that govern the conduct it addresses.
Section 17A of the MACC Act 2009, which came into force on 1 June 2020, introduced corporate liability for corruption offences in Malaysia. Under Section 17A(1), a commercial organisation is guilty of a corruption offence if a person associated with the organisation — including employees, agents, subsidiaries, and joint venture partners — commits a corrupt act for the purpose of obtaining or retaining business for the organisation. The commercial organisation is liable to a fine of not less than ten times the sum of the gratification obtained (or RM1 million, whichever is higher) and/or imprisonment for a term not exceeding twenty years for the directors or officers found to have negligently caused the offence.
Section 17A(4) of the MACC Act 2009 provides a complete defence to the commercial organisation if it can demonstrate that it had in place 'adequate procedures' to prevent corrupt acts by its associated persons. The Malaysian Anti-Corruption Commission (MACC) has issued guidelines titled 'Guidelines on Adequate Procedures' published pursuant to Section 17A(5), which set out five principles — T.R.U.S.T. — that form the framework for adequate procedures: Top-level commitment, Risk assessment, Undertaking control measures, Systematic review and monitoring, and Training and communication.
The Guidelines on Adequate Procedures require that a commercial organisation maintain a written anti-bribery policy as one of the core adequate procedures. The policy must be approved by the board of directors, communicated to all employees and associated persons, and updated regularly to reflect changes in risk exposure. For listed companies on Bursa Malaysia, the Listing Requirements require corporate governance disclosures on anti-corruption measures. The MACC Act 2009 applies to both domestic bribery and bribery of foreign public officials, with no territorial limitation on the offences.
The legal framework governing the Anti-Bribery Policy (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Anti-Bribery Policy (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies Act 2016 (Act 777) sets the foundational requirements.
When Do You Need a Anti-Bribery Policy (Malaysia)?
An Anti-Bribery Policy compliant with the MACC Act 2009 is required for every commercial organisation operating in Malaysia that wishes to establish an adequate procedures defence under Section 17A.
An Anti-Bribery Policy is required for all companies listed on Bursa Malaysia, which must disclose their anti-corruption measures in the Annual Report as part of the Malaysian Code on Corporate Governance (MCCG 2021) Practice 13.1 obligations and the Bursa Malaysia Main Market Listing Requirements Chapter 15.
An Anti-Bribery Policy is needed for any company that engages agents, distributors, or third-party intermediaries in Malaysia or internationally, as the MACC Act 2009 Corporate Liability Provision under Section 17A extends to corruption by 'associated persons' including agents and business partners acting on the company's behalf.
An Anti-Bribery Policy is required for any company participating in Malaysian government procurement or public tender processes, as the Integrity Pact requirement under the Government Procurement Act 1949 and the Procurement Act 2023 requires suppliers to commit to anti-corruption standards.
An Anti-Bribery Policy is needed for any subsidiary or joint venture of a company subject to the UK Bribery Act 2010, the US Foreign Corrupt Practices Act (FCPA), or similar extraterritorial anti-bribery legislation, as the parent company's compliance programme must extend to its Malaysian operations.
An Anti-Bribery Policy is required for any company that has received a letter of caution, compliance notice, or investigation notice from the MACC, or where an employee has been charged with a corruption offence under the MACC Act 2009, as demonstrating existing adequate procedures is critical to the corporate defence.
Parties in Malaysia should prepare a Anti-Bribery Policy (Malaysia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Anti-Bribery Policy (Malaysia)
A MACC Act 2009 Section 17A compliant Anti-Bribery Policy must include the following essential elements aligned with the T.R.U.S.T. principles in the MACC Guidelines on Adequate Procedures.
Top-Level Commitment: A statement from the board of directors and senior management affirming the organisation's absolute commitment to anti-bribery and anti-corruption, confirming zero tolerance for any act of bribery or corruption by any employee or associated person, and personally endorsing the policy.
Scope and Definitions: Clear definitions of bribery, corruption, gratification (as defined in Section 3 of the MACC Act 2009 — which includes money, gift, loan, fee, reward, commission, property, or anything of value), facilitation payments, kickbacks, and improper gifts. Confirmation that the policy applies to all directors, officers, employees, agents, contractors, and associated persons worldwide.
Prohibitions: An absolute prohibition on offering, giving, receiving, or soliciting any gratification to or from any person — including government officials, public servants, private sector counterparties, and foreign officials — to obtain or retain business or any other improper advantage.
Gifts and Hospitality Guidelines: Specific monetary thresholds for permissible gifts (commonly RM200 to RM500 per instance under MACC guidelines), requirements to declare gifts received above the threshold, prohibition on cash gifts, restrictions on entertainment during procurement tender periods, and the gift register requirement.
Facilitation Payments: An express prohibition on facilitation payments — small unofficial payments to government or customs officials to expedite routine government actions — as these constitute gratification under Section 3 of the MACC Act 2009 regardless of the amount.
Risk Assessment and Due Diligence: A commitment to conducting anti-bribery risk assessments for high-risk business activities, geographies, and associated persons, and performing due diligence on agents and intermediaries before engagement.
Reporting and Whistleblowing: A confidential reporting mechanism for employees and associated persons to report suspected bribery, protected under the Whistleblower Protection Act 2010 (Act 711). Reference to the MACC hotline (1-800-88-6000) and the company's internal reporting channel.
Additional compliance elements for a Anti-Bribery Policy (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Anti-Bribery Policy (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/business/policies/anti-bribery-policy-malaysia
"Anti-Bribery Policy (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/business/policies/anti-bribery-policy-malaysia.
@misc{formslegal-anti-bribery-policy-malaysia,
author = {{Forms Legal}},
title = {Anti-Bribery Policy (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/business/policies/anti-bribery-policy-malaysia}},
note = {Free legal document template. Based on Companies Act 2016 (Act 777)}
}Also available for these jurisdictions:
Frequently Asked Questions
Section 17A of the Malaysian Anti-Corruption Commission Act 2009 (MACC Act 2009, Act 694), which came into force on 1 June 2020, introduces corporate liability for corruption in Malaysia. Under Section 17A(1), a commercial organisation is guilty of a corruption offence if a person 'associated' with the organisation — including employees, agents, subsidiaries, and joint venture partners — commits a corrupt act for the purpose of obtaining or retaining business or a business advantage for the organisation. The commercial organisation faces a fine of not less than ten times the sum of the gratification or RM1 million (whichever is higher), and/or imprisonment up to twenty years for the responsible directors and officers. The critical defence under Section 17A(4) is that the organisation can demonstrate it had 'adequate procedures' in place to prevent the corrupt act. The MACC's Guidelines on Adequate Procedures set out five principles — Top-level commitment, Risk assessment, Undertaking control measures, Systematic review and monitoring, and Training and communication (T.R.U.S.T.) — which form the framework for establishing the adequate procedures defence.
Under the Malaysian Anti-Corruption Commission Act 2009, gratification is defined broadly in Section 3 to include any gift, loan, fee, reward, commission, valuable security, property, or any other advantage. There is no de minimis exemption for gifts under the MACC Act 2009 — technically, even a small gift given with corrupt intent is an offence. In practice, the MACC's corporate guidance and the Guidelines on Adequate Procedures recognise that modest gifts in the context of normal business hospitality may be permissible provided they are transparent, occasional, not intended to influence a business decision, not given to government officials or public servants during procurement processes, and properly declared and recorded in a gift register. Many Malaysian companies set internal thresholds of RM200 to RM500 per gift occasion as a practical guideline. Cash gifts are absolutely prohibited regardless of amount. Gifts to public servants are separately restricted by the Government Officers (Conduct and Discipline) Regulations 1993 and the MACC Act 2009 Sections 16 and 17, which prohibit public servants from soliciting or receiving any gratification in connection with their official duties.
Yes. The Malaysian Anti-Corruption Commission Act 2009 (MACC Act 2009) applies to the bribery of foreign public officials in addition to domestic Malaysian public officials and private sector bribery. Sections 16 and 17 of the MACC Act 2009 cover corrupt transactions involving 'any person' — including foreign government officials, officers of international organisations, and foreign state-owned enterprise employees — without any territorial limitation. The MACC has jurisdiction over corruption offences committed by Malaysian nationals or companies abroad, as well as offences committed in Malaysia involving foreign parties. For multinational companies with Malaysian operations, the MACC Act 2009's extraterritorial reach, combined with the UK Bribery Act 2010 (which applies to companies with UK nexus) and the US Foreign Corrupt Practices Act 1977 (which applies to US issuers, domestic concerns, and agents), creates overlapping compliance obligations. A robust Anti-Bribery Policy must address all three regimes and prohibit facilitation payments, which are expressly prohibited under the UK Bribery Act 2010 but may be treated differently under US FCPA guidance.
The Whistleblower Protection Act 2010 (Act 711) provides protection to employees and others who report corruption or other improper conduct to an 'enforcement agency' in Malaysia. Under Section 6 of the Whistleblower Protection Act 2010, a whistleblower who makes a disclosure to an enforcement agency (such as the MACC, the police, or another designated agency) is entitled to immunity from civil and criminal liability arising from the disclosure, and protection against detrimental action by their employer — including demotion, harassment, dismissal, or any other adverse employment action. The protection applies to disclosures made in good faith and does not cover frivolous, vexatious, or maliciously false reports. The Whistleblower Protection Act 2010 designates the MACC as the primary enforcement agency for corruption disclosures, and all disclosures to the MACC are treated as confidential under Section 28 of the MACC Act 2009. An Anti-Bribery Policy should reference both the Whistleblower Protection Act 2010 and the company's internal confidential reporting channel, and confirm that no retaliation will be taken against good-faith reporters.
Facilitation payments are small, unofficial payments made to low-level government officials to expedite or secure the performance of routine governmental actions — such as customs clearance, visa processing, utility connections, or obtaining permits. Examples include payments to a customs officer to speed up cargo release or to a permit officer to process a licence application. Under the Malaysian Anti-Corruption Commission Act 2009, facilitation payments constitute gratification as defined in Section 3 and are therefore a criminal offence under Sections 16 and 17 regardless of the amount. The MACC does not recognise any de minimis threshold or 'grease payment' exemption. Malaysia's position is consistent with the UK Bribery Act 2010, which also expressly prohibits facilitation payments with no exceptions. This is stricter than the US Foreign Corrupt Practices Act 1977, which historically permitted facilitation payments (though the US Department of Justice has increased enforcement). Malaysian companies must prohibit facilitation payments absolutely in their Anti-Bribery Policy, train employees on how to resist demands for such payments, and report facilitation payment demands to the MACC hotline (1-800-88-6000).
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
Found an error? Let us knowRelated Documents
You may also find these documents useful:
Whistleblower Policy (Malaysia)
A corporate Whistleblower Policy for Malaysian companies, aligned with the Whistleblower Protection Act 2010 (Act 711) and the MACC Act 2009. Covers reporting channels, confidentiality protections, non-retaliation commitments, and the investigation process for reported wrongdoing.
Anti-Money Laundering Policy (Malaysia)
A corporate Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) Policy for Malaysian companies, aligned with the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA 2001). Covers Customer Due Diligence, transaction monitoring, suspicious transaction reporting to the Financial Intelligence Unit, and record-keeping obligations.
Employee Handbook (Malaysia)
A Malaysia-compliant Employee Handbook template covering company policies, working hours, leave entitlements, code of conduct, disciplinary procedures, and workplace safety under the Employment Act 1955, Industrial Relations Act 1967, and Occupational Safety and Health Act 1994.