From digital safety and environmental enforcement to tax reforms and public hygiene standards, several new laws and regulations will come into effect in 2026, shaping many aspects of daily life in Malaysia.
These changes will influence how children access social media, how businesses issue invoices, what individuals and companies pay in taxes, and how public safety and cleanliness are enforced. Below is an overview of what to expect and how these measures may affect you.
Digital and online safety regulations
The Online Safety Act 2025, passed in 2024 and gazetted earlier this year, will take effect at the beginning of 2026. The law places legal responsibilities on application service providers and social media platforms to address harmful online content, including cyberbullying, scams, and child exploitation.
According to Minister in the Prime Minister’s Department (Law and Institutional Reform), Datuk Seri Azalina Othman Said, the Act also establishes an online safety committee to guide enforcement. Platforms that fail to act against harmful content could face legal consequences, while users especially minors can expect stricter moderation and safety controls.
In addition, Malaysia plans to prohibit social media use for children under the age of 16. This initiative mirrors similar policies introduced in countries such as Australia and will require platforms to verify users’ ages through electronic know-your-customer checks. Parents will need to ensure compliance, as under-16 users may be blocked from creating new accounts.
Social media platforms such as TikTok, Instagram, Facebook, WhatsApp, and Telegram with more than eight million users will also be required to hold an ASP(C) licence. Failure to comply could result in fines of up to RM500,000, potentially affecting platform operations and content policies.
Taxation and business regulations
The e-invoicing system will be rolled out in phases starting in 2026. Businesses with annual revenue between RM1 million and RM5 million must comply by 1 January 2026, while those earning between RM500,000 and RM1 million will follow by 1 July 2026. Businesses earning below RM500,000 remain exempt for now.
This means larger small and medium enterprises will need to adopt digital invoicing systems, which may require updates to accounting processes, while smaller businesses will not yet be affected.
Several tax changes will also take effect. Stamp duty on residential property purchases by foreigners will increase from 4% to 8%. A new 2% tax will be imposed on Limited Liability Partnership profit distributions exceeding RM100,000.
At the same time, the stamp duty exemption threshold for employment contracts will rise from RM300 to RM3,000 per month. New personal tax reliefs have also been introduced, including RM1,000 for local tourism spending under Visit Malaysia 2026, RM3,000 for childcare expenses including after-school transit for children up to 12, and RM2,500 for CCTV installations and household waste grinders.
While foreign property buyers and certain partnerships may face higher costs, families and local travellers may benefit from expanded tax reliefs.
Vehicle tax exemptions have also been refined. Under Budget 2026, tax exemptions will only apply to vehicles priced at RM300,000 and below. This move aims to prevent luxury vehicle buyers from benefitting from exemptions intended for affordable cars.
Transport and public safety measures
Starting January 2026, traffic fine discounts will be automated under the Kejara 2.0 system. Drivers who pay within the first 15 days can receive a 50% discount, while those who delay beyond 30 days must pay the full amount. Demerit points will be applied immediately once a summons is issued.
This system removes the reliance on periodic discount campaigns and requires drivers to pay closer attention to payment deadlines to avoid penalties or blacklisting.
In addition, all registered buses will be required to comply with new internal electrical wiring safety standards to continue operating. While this measure aims to enhance passenger safety, bus operators may need to invest in upgrades, which could affect operational costs.
Public hygiene and environmental enforcement
Stricter penalties for littering will be enforced under amended waste management laws. Offenders may face fines of up to RM2,000 and be sentenced to up to 12 hours of community service, such as cleaning public spaces, while wearing a clearly identifiable vest.
In Selangor, illegal dumping offences may attract penalties ranging from RM1,000 to RM100,000 under the Solid Waste and Public Cleansing Management Act 2007.
From January 2026, businesses operating food premises in 20 designated city areas must comply with the BMW toilet standard, bersih (clean), menawan (attractive), and wangi (pleasant-smelling). Failure to meet these standards may result in business licence renewals being denied.
Restaurants, cafes, and retail outlets will need to upgrade their facilities to meet hygiene requirements or risk enforcement action.
Image Credit : Astro Awani
