Section 17A: Why Every Malaysian Business Needs an Anti-Bribery Plan

This post is also available in: Melayu

What is Section 17A?

In Malaysia, Section 17A of the MACC Act has made anti-bribery plans non-negotiable since its enforcement in June 2020. With the Malaysian Anti-Corruption Commission (MACC) cracking down on corporate corruption, businesses face unprecedented risks.

This article explores why every Malaysian company needs a robust anti-bribery plan to comply with Section 17A, mitigate risks, and thrive in a transparent market.

Bribery and corruption remain key challenges in Malaysia. Although strict laws are in place, both public officials and private businesses are now held accountable to uphold integrity. Learn how these laws help keep your business honest and compliant.

Introduced via the MACC Act 2009 amendments in 2018, Section 17A holds Malaysian businesses liable for corrupt acts by employees, agents, or partners to gain business advantages. Penalties are severe: fines up to 10 times the bribe amount or RM10 million (whichever is higher), plus potential imprisonment for directors.

From SMEs to multinationals, no company is exempt, especially in high-risk sectors like construction, oil and gas, or procurement. Understanding Section 17A is the first step to safeguarding your business from financial and reputational ruin.

Avoid Millions in Fines

Why Section 17A Makes Anti-Bribery Plans Essential for Malaysian Businesses?

Every Malaysian Business Needs an Anti-Bribery Plan

An anti-bribery plan is your shield against Section 17A liabilities. The law offers a defense: companies with “adequate procedures” can avoid penalties by proving they took proactive steps to prevent bribery. Protect Your Business with Proven Compliance Strategies (ABAC)

These procedures include risk assessments, clear anti-bribery policies, employee training, and due diligence on third parties like suppliers or agents. Without a plan, businesses risk massive fines and loss of trust, as seen in cases like the 2021 Pristine Offshore prosecution, the first under Section 17A. A tailored anti-bribery plan isn’t just compliance—it’s a strategic necessity for survival in Malaysia’s competitive landscape.

Discover actionable insights and learn how Kognifi Sdn Bhd can help you safeguard your organization with Anti-Bribery and Anti-Corruption Training Course

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Building an Effective Anti-Bribery Plan: Key Steps for Compliance

Ready to act? Crafting a Section 17A-compliant anti-bribery plan involves practical steps: conduct a bribery risk assessment, establish a zero-tolerance policy, train staff on recognizing “gratification” (bribes), and monitor third-party relationships.

Many Malaysian companies align their plans with ISO 37001, the global anti-bribery management standard, to streamline compliance. Regular audits and whistleblower channels, protected under the Whistleblower Protection Act 2010, further strengthen your defenses. By integrating these measures, businesses not only meet MACC requirements but also build a culture of integrity that resonates with stakeholders.

If you want to know how to Detect Corruption and Unethical Behaviour, click to take action or join the Kognifi Anti-Bribery Anti-Corruption Training Class

Contact Kognifi to Learning From Our Experience Trainer

Course Instructor

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With Kognifi Sdn Bhd, you get expert trainers, practical workshops, and a curriculum designed to deliver results in Malaysia’s dynamic market.

Shamini’s interactive approach, including tailored scenarios and case studies, makes compliance relatable and actionable. Protect your organization from costly scandals while building trust with stakeholders.

Learning Highlights – Anti-Bribery and Anti-Corruption Training

This course focuses on Malaysia’s anti-corruption laws, strategies to identify and mitigate corruption risks, and best practices for corporate and individual compliance.

Participants will undergo a 1-day classroom training covering 3 modules. The Anti-Bribery Anti-Corruption Training Course includes:

Module 1 · Legal framework and Compliance – Understanding Section 17A of The MACC Act 2009

Activities:

• Framework of Malaysian Anti-Corruption Commission (MACC) Act 2009 · Lecture

• Clarification of key terms, including bribery, corruption, conflict of interest, gratification and facilitation payments · Workshop

• Legal penalties, corporate liability and personal consequences arising from violations of the Act · Group Activity

Module 2 · Identifying and Mitigating Corruption Risks in The Workplace

Activities:

• Common corruption practices across industries · Lecture

• Detecting corruption and unethical behavior · Workshop

• Whistleblowing and ethical reporting mechanisms · Group Activity

Module 3 · Corporate and Individual Responsibility – Best Practices for Compliance

Activities:

•Legal liabilities of organisations and employees · Lecture

•Establishing a zero-tolerance policy · Workshop

•The role of leadership and employee engagement in preventing corruption · Group Activity

This training course is an HRDF Claimable Course and is part of Kognifi’s corporate governance training programs. All our courses are 100% HRD Corp claimable, making it easier for you to invest in your team’s growth.

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