According to Malaysian Communications And Multimedia Commission Act 1998, the Malaysian Communications and Multimedia Commission, the executive authority for the supervision and administration of services in the telecommunications sector, is independent from the government in the decision-making process.

It is reported that Malaysia does not mandate functional separation for operators with significant market power (SMP) in the telecom market. However, there is an obligation of accounting separation since 2016.

Malaysia allows full foreign equity participation in a license category of particular interest to foreign suppliers called “application service providers” (i.e., suppliers who do not own underlying transmission facilities). However, the country has not allowed equal liberalization of the network facilities provider or network service provider license categories. Only 70% foreign participation is permitted in those categories, although in certain instances Malaysia has allowed greater equity participation.

The Malaysian Government expected to liberalize these categories fully in 2020 as part of the National Fiberisation and Connectivity Plan (NFCP); however, the change in government led the NFCP to drop these changes in favor of the National Digital Infrastructure Plan (NDIP). It is not yet clear whether the NDIP will include further liberalization of these subsectors.

It is reported that more than 50% of the shares of Telekom Malaysia, Malaysia's incumbent telecommunications operator, are owned by sovereign wealth funds, boards and companies linked to the government or state-owned enterprises.

It is reported that there is an obligation for passive infrastructure sharing in Malaysia to deliver telecom services to end users.

Section 116B(1) of the Criminal Procedure Code (Act 593) provides police officers with a warrant from a magistrate with the power to be given access to encrypted data, including through the provision of a “necessary password, encryption code, decryption code, software or hardware and any other means required to enable comprehension of the computerised data”. Failure to comply is an offence punishable by imprisonment or a fine.

In Malaysia, trade secrets and confidential information are protected by the common law tort of breach of confidential information and/or by contract. Trade secrets are protected as long as they consistently meets the eligibility for being confidential information.
According to Art. 35 of the Trade Descriptions Act, any person who discloses or makes use of any confidential information or document with respect to a particular enterprise or the affairs of an individual obtained by virtue of any provision of this Act commits an offence. The law defines confidential information as trade, business or industrial information that belongs to any person, that has economic value and is not generally available to or known by others.

Malaysia has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.

Malaysia has ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.

Malaysia has a clear regime of copyright exceptions that follows the fair dealing model, which enables the lawful use of copyrighted work by others without obtaining permission (Copyright Act of 1987). Arts. 9-13 list the exceptions including purposes of research, private study, criticism, review or the reporting of news or current events, among others.

Copyright is not adequately enforced online in Malaysia. It is reported that mobile device piracy is a problem in the country. Mobile phones, tablets, flash drives, and other mobile devices can either be pre-loaded with illegal content before being sold to customers or customers can directly download infringing content. However, it is reported that the rate of unlicensed software installation in the country was 51% in 2017 (below the 57% rate of the Asian Pacific countries), for an estimated commercial value of USD 598 million.

Malaysia is a party to the Patent Cooperation Treaty (PCT). However, the country does not consider itself bound by Art. 59 related to disputes.

There is no discrimination towards foreign applicants. However, there are restrictions for national applicants wishing to apply for patents internationally. They must file in Malaysia initially before becoming eligible to apply for patents in other countries, two months subsequent the date of filing, assuming they are not notified by the Malaysian Patent Office.

A foreign company may carry on business in Malaysia by either incorporating a local company or registering a branch in Malaysia.

Foreign investments in services, whether in fully liberalized or controlled sub-sectors, are subject to review and approval by ministries and agencies with jurisdiction over the relevant sectors. A key function of this review and approval process is to determine whether proposed investments meet the government's qualifications for the various incentives in place to promote economic development goals. The Ministerial Functions Act grants relevant ministries broad discretionary powers over the approval of investment projects. Investors in industries targeted by the Malaysian government can often negotiate favorable terms with the ministries or agencies responsible for regulating that industry. This can include assistance in navigating a complex web of regulations and policies, some of which can be waived on a case-by-case basis. Foreign investors in non-targeted industries tend to receive less government assistance in obtaining the necessary approvals from various regulatory bodies and therefore can face greater bureaucratic obstacles.