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Malaysia: Update on the Companies (Amendment) Act 2024 and the revised beneficial ownership reporting requirements

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In brief

We are pleased to share upcoming developments in relation to the Companies (Amendment) Act 2024 (“CA 2024“) which will anchor the revised beneficial ownership (BO) reporting framework.

1. Implementation Plan

The approval process of the CA 2024 through the Malaysian Parliament was completed in December 2023. The CA 2024 subsequently received Royal Assent on 24 January 2024 and finally, the CA 2024 was gazetted on 2 February 2024. At this point in time, the CA 2024 has yet to be enforced.

We now understand that the enforcement date of the CA 2024 is likely to be on/around 1 April 2024. As previously advised, the revised BO provisions cover the following key areas:

  1. The expanded criteria of a beneficial owner.
  2. Register of beneficial owners to be maintained at the registered office.
  3. Mandatory requirement for a company to obtain BO information.
  4. Submission of the BO information to the CCM via an online platform known as the e-BOS system.
  5. Self-disclosure obligation by a BO of a company.

Please refer to our client alert issued on 24 October 2023 for details relating to the key changes to the BO provisions. 

2. Looking Ahead

To coincide with the commencement of the enforcement of the CA 2024, we anticipate that the Companies Commission of Malaysia (CCM) will introduce new BO reporting guidelines and practice directives on the implementation of the revised BO reporting obligations. This may include templates of the BO reporting documents and other compliance requirements. We also expect the CCM to provide a transition period (likely three months) for companies to identify and notify the CCM of their BOs.

Our corporate services team will consider and follow up with separate communication in due course with directional guidance on the required documents and proposed course of action to comply with the revised BO reporting requirements.

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Andre heads the Corporate, Commercial & Securities and Competition Practice Group of Wong & Partners, and the regional mergers & acquisitions (M&A) practice of Baker McKenzie's Asian offices. His practice covers mergers and acquisitions, corporate securities, venture capital and private equity, and competition.
Andre is recognised in the leading legal directories including Chambers and Legal 500, and has published numerous articles in leading business publications in relation to corporate and competition law. He has also worked in the Singapore and London offices of Baker & McKenzie International.

Author

Ee Von Teo is a partner in the Corporate, Commercial & Securities Practice Group of Wong & Partners. Ee Von is an experienced partner in the area of M&A and has worked on numerous award-winning deals across the years. She was also awarded Young Lawyer of the Year by the Asian Legal Business Malaysia Law Awards 2017, and recognized in the Asian Legal Business' 40 under 40 list of leaders in 2018. Ee Von has been recognized as a Notable Practitioner by IFLR1000 since 2018, and clients commend her for being "excellent."
She is a frequent speaker and moderator on the Malaysian corporate landscape and legislation at international conferences, including those organized by the American Chamber of Commerce (AMCHAM).

Author

Poh Seng Lim is the General Manager in B&M Consultancy Services, Kuala Lumpur office.

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