MALAYSIA
Since April 2000, last amended in April 2022
Pillar Telecom infrastructure & competition |
Indicator Licensing restrictions to operate in the telecom market
Communications and Multimedia (Licensing) Regulations 2000 (Peraturan-peraturan komunikasi dan multimedia (pelesenan) 2000 [p.U.(a) 129/2000] )
Applications for individual licenses are reportedly assessed on a case-by-case basis. The Minister may grant a license based on the recommendations of the Malaysian Communications and Multimedia Commission (MCMC) under the Communications and Multimedia Act (CMA), taking into account the specified documents outlined in Regulation 7 of the Communications and Multimedia (Licensing) Regulations 2000. Applicants must submit an application to the MCMC, provide supporting documentation, and pay an application fee of RM 10,000 (approx. 2,000 USD) per individual license. The MCMC then has 60 days to evaluate the application and make a recommendation to the Minister, who has 30 days to approve it.
It is reported that the acquisition of a licence in the telecommunications sector is subject to various restrictions, including a legally prescribed limit on the number of licences that may be issued, minimum capital requirements for applicants, and other regulatory conditions.
It is reported that the acquisition of a licence in the telecommunications sector is subject to various restrictions, including a legally prescribed limit on the number of licences that may be issued, minimum capital requirements for applicants, and other regulatory conditions.
Coverage Telecommunications sector
Sources
- https://web.archive.org/web/20231028173110/https://www.mcmc.gov.my/Skmmgovmy/Media/General/Pdf/Act588Bi_3.Pdf
- https://web.archive.org/web/20230210002549/https://www.wto.org/english/tratop_e/tpr_e/s436_e.pdf
- https://web.archive.org/web/20220224202115/https://www.wto.org/english/tratop_e/tpr_e/s366_e.pdf
- https://web.archive.org/web/20260315170209/https://datahub.itu.int/data/?i=100051&s=12589&e=MYS
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MALAYSIA
N/A
Pillar Telecom infrastructure & competition |
Indicator Signature of the WTO Telecom Reference Paper
Partial appendment of WTO Telecom Reference Paper to schedule of commitments
Malaysia has only partially appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.
Coverage Telecommunications sector
Sources
- https://web.archive.org/web/20240917181619/https://www.wto.org/English/tratop_e/serv_e/telecom_e/sc52.pdf
- https://web.archive.org/web/20220307092617/https://www.wto.org/english/tratop_e/serv_e/telecom_e/telecom_commit_exempt_list_e.htm
- https://web.archive.org/web/20220119043046/https://www.wto.org/english/tratop_e/serv_e/telecom_e/telecom_highlights_commit_exempt_e.htm#country
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MALAYSIA
Since September 1998, entry into force in April 1999, last amended in January 2006
Pillar Telecom infrastructure & competition |
Indicator Presence of an independent telecom authority
Communications and Multimedia Commission Act 1998 [Act 588] (Akta Komunikasi dan Multimedia 1998 (Akta 588))
According to the 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.
Coverage Telecommunications sector
MALAYSIA
Since August 2025
Pillar Cross-border data policies |
Indicator Ban to transfer and local processing requirement
National Cloud Computing Policy (Dasar Pengkomputeran Awan Negara)
Section 4.1 of the National Cloud Computing Policy stipulates that confidential data must be stored exclusively within sovereign cloud zones located in Malaysia. This requirement encompasses classified governmental documents as well as data pertaining to national critical information infrastructure. The term national critical information infrastructure refers to any computer or computer system whose disruption or destruction would adversely affect the provision of services essential to Malaysia’s security, defence, foreign relations, economy, public health, public safety, or public order, or would impair the capacity of the Federal Government or any State Government to discharge its functions effectively.
Coverage Public sector and critical infrastructure
MALAYSIA
Since August 2018
Since August 2018
Since August 2018
Pillar Cross-border data policies |
Indicator Local storage requirement
Sales Tax Act 2018 (Akta Cukai Jualan 2018)
Service Tax Act 2018 (Akta Cukai Perkhidmatan 2018)
Service Tax Act 2018 (Akta Cukai Perkhidmatan 2018)
Pursuant to Section 24 of the Sales Tax Act 2018 and Section 24 of the Service Tax Act 2018, every taxable person is obligated to maintain comprehensive records of all transactions that may affect their liability to sales or service tax, as applicable. Such records must include, but are not limited to, documentation relating to the sale, importation, and exportation of taxable goods, as well as the provision of taxable services. These records are required to be retained for a period of seven years from the latest date to which the records pertain, and must be kept within Malaysia, unless the Director General of Customs and Excise grants approval for an alternative arrangement.
Coverage Horizontal
Sources
- https://web.archive.org/web/20250408202612/https://mysst.customs.gov.my/assets/document/SST%20Act/Sales%20Tax%20Act%202018_b.pdf
- https://web.archive.org/web/20250408204638/https://mysst.customs.gov.my/assets/document/SST%20Act/Service%20Tax%20Act%202018_b.pdf
- https://web.archive.org/web/20250408202748/https://www.lexology.com/library/detail.aspx?g=58e24e92-df92-4d11-bba1-9507c9552bf9
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MALAYSIA
Since November 1983, last amended in June 2022
Pillar Intellectual Property Rights (IPRs) |
Indicator Practical or legal restrictions related to the application process for patents
Patents Act 1983
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 to the date of filing (Sections 23A and 30A of the Patents Act).
In addition, it is reported that foreign applicants must appoint an agent, specifically a registered Malaysian patent attorney, to undertake patent registration procedures in Malaysia.
In addition, it is reported that foreign applicants must appoint an agent, specifically a registered Malaysian patent attorney, to undertake patent registration procedures in Malaysia.
Coverage Horizontal
Sources
- https://web.archive.org/web/20250617200540/https://www.kpdn.gov.my/images/2024/awam/akta/myipo/ACT%20291.pdf
- https://web.archive.org/web/20260315182843/https://ip-coster.com/IPGuides/patent-malaysia
- https://pctlegal.wipo.int/eGuide/view-doc.xhtml?doc-code=MY&doc-lang=en#GENERAL%20INFO
- https://web.archive.org/web/20230204015645/https://www.mirandah.com/patent-system/malaysia/
- https://web.archive.org/web/20211026023312/http://ips.clarivate.com/m/pdfs/dwpicovkinds/malaysia.pdf
- https://web.archive.org/web/20220930215109/https://www.fpapatents.com/malaysia-filing-grant
- https://web.archive.org/web/20231126161614/http://www.myipo.gov.my/wp-content/uploads/2016/09/PATENT-ACT-1983-ACT-291.pdf
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MALAYSIA
Since August 2006
Pillar Intellectual Property Rights (IPRs) |
Indicator Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty
Malaysia is a party to the Patent Cooperation Treaty (PCT). However, the country does not consider itself bound by Art. 59 related to disputes.
Coverage Horizontal
MALAYSIA
Since April 1987
Pillar Intellectual Property Rights (IPRs) |
Indicator Copyright law with clear exceptions
Copyright Act 1987 - Act No. 332 (Akta Hak Cipta 1987 - Akta 332)
Section 13.2, together with other provisions of the Copyright Act, establishes a clear framework of copyright exceptions grounded in the doctrine of fair dealing and supplemented by a range of specific, enumerated exceptions. These provisions permit the lawful use of copyrighted works by third parties without the need to obtain prior authorisation.
Coverage Horizontal
MALAYSIA
Reported in 2022, last reported in 2025
Pillar Intellectual Property Rights (IPRs) |
Indicator Enforcement of copyright online
Reported challenges of online piracy
It is reported that online piracy in Malaysia continues to pose a significant challenge for rights holders.
Coverage Horizontal
MALAYSIA
Since September 2012, entry into force in December 2012
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Copyright Treaty
WIPO Copyright Treaty
Malaysia has adopted the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal
MALAYSIA
Since September 2012, entry into force in December 2012
Pillar Intellectual Property Rights (IPRs) |
Indicator Adoption of the WIPO Performances and Phonograms Treaty
WIPO Performances and Phonograms Treaty
Malaysia has adopted the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal
MALAYSIA
Since 2011
Pillar Intellectual Property Rights (IPRs) |
Indicator Effective protection covering trade secrets
Trade Descriptions Act
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 meet 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, has economic value, and is not generally available to or known by others.
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, has economic value, and is not generally available to or known by others.
Coverage Horizontal
MALAYSIA
Reported in 2017, last reported in 2024
Pillar Telecom infrastructure & competition |
Indicator Passive infrastructure sharing obligation
Requirement of passive infrastructure sharing
It is reported that there is an obligation for passive infrastructure sharing in Malaysia to deliver telecom services to end users.
Coverage Telecommunications sector
MALAYSIA
Reported in 2021, last reported in 2025
Pillar Public procurement of ICT goods and online services |
Indicator Exclusion from public procurement
Reported exclusionary practices in public procurement
It is reported that Malaysia generally invites international tenders only when domestically sourced goods and services are unavailable. In such instances, foreign companies are, by law, required to engage a local partner who satisfies Bumiputera (indigenous ethnic Malay) eligibility criteria before their tenders will be considered.
Coverage Horizontal
MALAYSIA
Reported in 2014, last reported in 2023
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Margin of preference for domestic suppliers
It is reported that while price considerations are important in concluding a government contract, the "value for money" concept includes non-price factors and broader policy considerations, such as accelerating economic growth through procurement, maximising the use of local materials and resources, promoting local freight and insurance, transferring technology, and providing incentives for indigenous entrepreneurs (Bumiputera). Bumiputera suppliers benefit from a preference margin of 2.5% to 10%, inversely proportional to the contract value, for goods and services contracts valued between MYR 100,000 (approx. USD 23,500) and MYR 15 million (approx. USD 3.5 million), with no preferences for contracts above MYR 15 million. For locally made goods by Bumiputera manufacturers, the preference margin is 10% for contracts below MYR 10 million (approx. USD 2.3 million), up to 5% for contracts between MYR 10 million and MYR 100 million, and 3% for contracts above MYR 100 million. This practice has persisted since 1995. Additionally, it is reported that all individuals, companies, or corporate bodies intending to participate in government procurement of works, supplies, and services must be approved by and registered with the Ministry of Finance. Procurement often involves middlemen rather than direct dealings with the governmental entity or is negotiated rather than tendered.
Coverage Horizontal
Sources
- https://web.archive.org/web/20230210002549/https://www.wto.org/english/tratop_e/tpr_e/s436_e.pdf
- https://web.archive.org/web/20240808090040/https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/WT/TPR/S436R1.pdf&Open=True
- https://web.archive.org/web/20241209191545/https://trade.ec.europa.eu/access-to-markets/en/barriers/details?isSps=false&barrier_id=11404
- https://web.archive.org/web/20230919071332/https://ustr.gov/sites/default/files/2015%20NTE%20Combined.pdf
- https://web.archive.org/web/20221220004845/https://ppp.treasury.gov.my/topik/fail/4/muat-turun
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