Manager
Attorney at Law (Germany)
Malaysia: Consultation on proposed sustainability reporting amendments to the Companies Act 2016
- ASEAN Newsflash - Q3 2026
- Expanded powers of the registrar
- New reporting and assurance framework
- Strengthened director´s accountability
The Companies Commission of Malaysia (SSM) invited comments on a consultative document concerning proposed amendments to the Companies Act 2016 on sustainability reporting until 16 June 2026. The proposals include empowering the Registrar to determine the scope, form and application of sustainability reporting requirements, introducing phased reporting thresholds and an assurance framework, strengthening directors‘ accountability and establishing a framework for sustainability assurance providers.
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Proposed amendments
Expanded powers of the registrar
The Malaysia Digital Action Plan 2030 sets forward several ambitious national targets. By 2030 Malaysia intends for the digital economy to account for 30 % of the GDP and create 500,000 high-value job opportunities. The Government also aims to provide 95 % of public services online end-to-end while achieving public-sector savings of RM 4.5 billion through digitalization. Further targets relate to Malaysia’s international rankings for digital competitiveness and AI readiness.
The proposed amendments would empower the Registrar to determine the scope, form and application of sustainability reporting requirements under a mandatory comply-or-explain approach.
New Reporting and Assurance Framework
The proposed framework introduces phased reporting requirements based on company size, with a corresponding implementation timeline and phased assurance framework.
| Qualifying Thresholds | Phase 1 | Phase 2 | Phase 3 |
| RM 1 billion – RM 2 billion; or ≥ 500 employees | 2028 | 2029 | 2032 |
| RM 100 million – RM 1 billion; or 250 – 499 employees | 2030 | 2031 | ./. |
| RM 15 million – RM 100 million; or 100 – 249 employees | 2032 | 2033 | ./. |
| Below RM 15 million or 100 employers | Not subject to sustainability requirements (voluntary opt-in) | ||
Table 1: SSM´s proposed qualifying thresholds and implementation timeline for sustainability reporting (No. 53).
| Qualifying Thresholds | Internal Assurance | Limited Assurance | Reasonable Assurance |
| RM1 billion – RM 2 billion;
or ≥ 500 employees |
2028 – 2030 | 2028 – 2030 | ./. |
| RM100 million – RM1 billion;
or 250 – 499 employees |
2030 – 2032 | 2030 – 2032 | ./. |
| RM15 million – RM100 million;
or 100 – 249 employees |
2032 – 2034 | 2032 – 2034 | ./. |
| Below RM15 million or 100 employees | Not subject to sustainability requirements (voluntary opt-in) | ||
Table 2: SSM’s proposed phased assurance timeline (No. 59)
Strengthened Directors’ Accountability
Sustainability disclosures would become part of the business review and directors’ report. The amendments also include board approval requirements, a directors’ compliance declaration and penalties for non-compliance.
Sustainability Assurance Providers
The proposed amendments would introduce a framework for sustainability assurance providers and allow further requirements to be prescribed by the Registrar.