Malaysia

Standards

National standards organizations

Integration in the international standards network

The organisation in charge of the normalisation and the certification of products in Malaysia is the Department of Standards Malaysia (DSM).
The standards and Industrial Research Institute of Malaysia (SIRIM) is the body accredited by the Malaysian Administration for the development of the activities of standardisation and certification. At the moment, the SIRIM has more than 600 standards, with more than 70 different procedures for certification. The SIRIM grants the SIRIM mark of quality with the Malaysian standards.
For some precise products and production processes, it is necessary to obtain a certificate from the SIRIM. There are certain cases when the approval of some other organisations is necessary, for electrical products for instance, which require the approval of the Department of Electrical Inspectorate under the Ministry of Energy, Telecommunications and the Post. Generally the British standards are used.

Classification of standards

Online consultation of standards

Certification organizations

Legal framework

Independence of justice

Judiciary in Malaysia is not independent. There is excessive influence of the executive over the judiciary, especially in politically motivated cases.

Equal treatment of nationals and foreigners

Foreigners cannot be guaranteed an impartial trial from the country's judiciary.

The language of justice

The judicial language used in the country is Bahasa Malaysia.

Having recourse to an interpreter

Having an interpreter is possible.

Sources of the law and legal similarities

Malaysia is a Federal state with constitutional elective monarchy. It consists of 13 states which enjoy fair amount of federal decentralization. The system of government in the country is closely modeled on that of Westminster parliamentary system, a legacy of British colonial rule.  
The chief of state is the Paramount Ruler, commonly referred to as the King. The King is selected from the nine hereditary rulers (called Sultans) of the Malay states to serve a five-year term; the other four states (which have titular Governors) do not participate in the selection. F ollowing legislative elections, the leader of the party that wins a plurality of seats in the lower house of the parliament becomes the Prime Minister to serve a five-year term, subject to confirmation by the King. Prime Minister is the head of the government and holds the executive powers which include implementation of the law and running the day-to-day affairs of the country . Cabinet is appointed by the Prime minister from among the members of parliament with consent of the Paramount Ruler.
The legislature in Malaysia is bicameral. The parliament consists of: Senate (the upper house) having 69 seats, out of which 43 appointed by the Paramount Ruler and 26 appointed by the 13 state assembles to serve six-year terms; and House of Representatives (the lower house) having 219 seats; with its members elected by popular vote to serve five-year terms. The King can dissolve parliament if he wishes but usually does so upon the advice of the Prime Minister. In general, more power is vested in the executive branch of government than in the legislative. The legislative power is divided between federal and state legislatures. Each state has its own government, a cabinet with executive authority, and a legislature that deals with matters not reserved for the federal parliament . The people of Malaysia have limited political rights.
Judiciary in Malaysia is not independent. There is excessive influence of the executive over the judiciary, especially in politically motivated cases. The main source of the law in Malaysia is the constitution of 1957 (amended in 1963). The country's legal system is based on English common law and the judicial review of legislative acts in the Supreme Court. Islamic law is applied to Muslims in matters of family matters. Each state in Malaysia has its own constitution which sometimes results into variations of law from state to state. Malaysia has not accepted compulsory ICJ jurisdiction. The judicial language used in the country is Bahasa Malaysia; having an interpreter is possible.
On the whole, Malaysia is not yet ruled by law. Foreigners cannot be guaranteed an impartial trial from the country's judiciary. A considerable degree of corruption exists in the country, especially in politics and corporate sector. The country's police force is also plagued with corruption.

Consulting national laws online

Intellectual Property

National organizations

The organisation in charge of the protection of intellectual property is the Kementerian Perdagangan Dalam Negeri Dan Hal Ehwal Pengguna.
Malaysia is a member of the World Intellectual property Organization and signed the Agreement of Paris on the Protection of Industrial Property.
The protection of patents is governed by the 1983 Law. The current regulation came into force on October 1st, 1986. The request for a patent should be presented in Malaysia and this will cover the whole country. Inventions can be patented only if they are new, little obvious and industrially applicable. A patent expires after 15 years but can be renewed in certain cases.
The protection of registered trademarks is governed in Malaysia by the 1976 and 1983 Laws.
In order to register a trademark, it is necessary to seek its registration from the Registrar of Trade Mark and to indicate the user of the brand in the country. As soon as the trademark is registered, it becomes protected and its usage is continuous.

Tax rates

Accounting rules

Tax year

The fiscal year begins on January 1-st and ends on December 31 of the same year.

Accounting regulation bodies

Publication

According to the law all companies have to publish the following recordings : shareholders' details, details concerning the members of the board of directors, details concerning the debt accounts of the company.
Public companies have also to publish their statutory accounts to the shareholders during the annual meeting.

Professional accountancy bodies

Certification and auditing

Independent accountants must analyze the financial statements of the companies.

Accounting news

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