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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.
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

MALAYSIA

Reported in 2022, last reported in 2023

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Restriction in public procurement
It is reported that all individuals and enterprises intending to do business with the Malaysian Government must register with the relevant authorities: the Ministry of Finance (MOF) for goods and services and the Construction Industry Development Board (CIDB) for works, to obtain their Contractor Registration Certificate (PPK) and Government Procurement for Works Certificate (SPKK). Penalties for non-compliance or substandard performance include suspension of registration for up to five years, effectively barring opportunities to compete for government contracts during that period. While exemptions from registration exist under certain circumstances, subject to the approval of MOF/CIDB, tender deposits may not be waived for international bidders. Registered local suppliers and contractors are exempt from tender deposit requirements, whereas foreign bidders must provide deposits ranging from MYR 60,000 (approx. 13,000 USD) to MYR 1 million (approx. 212,000 USD). Additionally, successful bidders must provide performance bonds issued by financial institutions licensed to operate in Malaysia. While this policy is widely reported, no specific official text detailing these practices has been found online.
Coverage Horizontal

MALAYSIA

N/A

Pillar Public procurement of ICT goods and online services  |  Indicator Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
Malaysia is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2012.
Coverage Horizontal

MALAYSIA

Reported in 2018, last reported in 2025

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
Maximum foreign equity shares
Although no general limits are placed on foreign equity ownership in the telecommunications sector, a restriction applies in the case of a single government‑controlled company. It is reported that the national telecommunications company, Telekom Malaysia, is subject to a foreign ownership ceiling of 30%, with individual investors permitted to hold no more than 5%.
Coverage Telekom Malaysia

MALAYSIA

Since September 2016, last amended in July 2019

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Nationality/residency requirement for directors or managers
Companies Act 2016 No. 777
The Companies Act 2016 prescribes the minimum number of directors in a company. Section 196.1 provides that a private company shall have a minimum of one director who ordinarily resides in Malaysia by having a principal place of residence in Malaysia (‘resident director’). For a public company, it shall have a minimum of two resident directors.
Coverage Horizontal

MALAYSIA

Since September 2016, last amended in 2024

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Commercial presence requirement for digital services providers
Companies Act 2016 No. 777
A foreign company may carry on business in Malaysia by either incorporating a local company or registering a branch in Malaysia.
Coverage Horizontal

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.
Coverage Horizontal

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

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