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Employment contracts in Malaysia are subject to stamp duty under the Stamp Act 1949. With stricter enforcement by LHDN, employers must ensure compliance—especially for newly hired staff. From 1 January 2026, non-compliance may result in penalties.
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Electronic signatures are legally recognised in Malaysia under the Electronic Commerce Act 2006 (ECA), allowing documents to be signed electronically for commercial and legal purposes, provided the signature is linked to the signer, indicates their approval, and is reliable and secure, making e-signatures a practical solution for remote and low-risk transactions.
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Starting October 2025 (for payments due in November 2025), EPF contributions will be mandatory for all non-Malaysian employees — except domestic workers. This aligns with global standards and promotes fair treatment for all workers in Malaysia.
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The Inland Revenue Department (LHDN) is tightening enforcement under a new framework of the Stamp Act 1949, making it crucial for employers to stamp employment contracts within the required timeframe. This move highlights the importance of proper documentation to ensure tax and legal compliance in employment relationships.
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