Malaysia’s workplace safety laws have undergone a major transformation with the Occupational Safety and Health (Amendment) Act 2022. One of the most striking changes? Fines have increased by up to 10 times!
This amendment strengthens enforcement, raises penalties, and ensures stricter compliance to protect workers from occupational hazards. Employers must now take workplace safety more seriously than ever to avoid severe consequences.
Penalties Increased by 10X: What’s Different?
The Factories and Machinery Act (FMA) 1967 has been repealed, and all safety legislations are now fall under the Occupational Safety and Health Act (OSHA) 1994. Below is a side-by-side comparison of few key changes of the requirement before and after the amendment:
| Requirement | Previous Provision (Before Amendment) | New Provision (After Amendment – 2022) |
|---|---|---|
| Penalty for failure to comply with general duties of employers and self-employed persons (Sections 15–18) | Fine up to RM50,000 or not more than 2 years’ imprisonment or to both | Fine up to RM500,000 or not more than 2 years’ imprisonment or to both |
| Penalty for failure to comply with safety notices (Improvement/Prohibition Notice under Section 15) | Fine up to RM50,000 or not more than 5 years’ imprisonment or to both, plus RM500 per day for continuing offences | Fine up to RM500,000 or not more than 2 years’ imprisonment or to both, plus RM2,000 per day for continuing offences |
| General penalty for violations (If no specific penalty is stated in the Act) | Fine up to RM10,000 or not more than 1 year imprisonment or to both, plus RM1,000 per day for continuing offences | Fine up to RM100,000 or not more than 1 year imprisonment or to both, plus RM2,000 per day for continuing offences |
| Penalty for failure to establish a Safety and Health Committee (if 40 or more employees) | Fine up to RM5,000 or not more than 6 months’ imprisonment or to both | Fine up to RM100,000.00 or not more than 1 year imprisonment or to both |
| Penalty for failure to appoint a Safety and Health Officer (as required by law) | Fine up to RM5,000 or imprisonment not more than 6 months or to both | Fine up to RM50,000.00 or imprisonment not more than 6 months or to both |
| Duty of principal | Not explicitly stated as it will be part of the employers’ general duties towards people other than his/her employees. | The principal is now responsible to ensure the safety and health of his/her contractor, subcontractor, or employees employed by subcontractors under the direction of the principal.
Failure to comply will result in a fine up to RM500,000 or not more than 2 years’ imprisonment or both. |
| Penalty for employee discrimination (for reporting unsafe conditions or cooperating with authorities) | Fine up to RM10,000 or not more than 1 year imprisonment or to both | Fine up to RM100,000 or not more than 1 year imprisonment or to both |
| Penalty for failure to notify DOSH of workplace occupation | Not explicitly required as the requirement was previously prescribed in FMA 1967, which was factory-centered. | Employers must notify DOSH before occupying a workplace of the type that has been gazetted/prescribed by DOSH; failure to do so results in a fine up to RM100,000 or not more than 1 year imprisonment or to both |
| Employee rights to refuse unsafe work (New Requirement!) | Not explicitly stated | Employees can refuse work if they believe imminent danger exists, and employers must take corrective action |
| Duty for employers to conduct and implement risk assessment (New Requirement!) | Not explicitly stated as it will be part of the employers’ general duties to ensure workplace safety and health. | Risk assessment is required to be conducted by the employer/principal for processes that may impose any occupational safety and health risk to any person at the workplace.
Failure to comply will result in a fine up to RM500,000 or not more than 2 years’ imprisonment or to both. |
| Appointment of OSH Coordinator (New Requirement!) | Not explicitly stated | Fine up to RM50,000.00 or imprisonment of 6 months or to both |
What Employers Must Do Now
With fines skyrocketing by up to 10 times, businesses can no longer afford to overlook occupational safety and health. Here’s what employers need to focus on:
✅ Review and update safety policies or processes to comply with new legal requirements.
✅ Conduct frequent workplace safety audits / inspection to prevent violations before they happen.
✅ Educate employees on their rights, including their ability to refuse unsafe work.
✅ Establish Safety and Health Organization (including Safety and Health Committee and appointment of Safety and Health Personal) as per the law to avoid non-compliance penalties.
Final Thoughts
The Occupational Safety and Health (Amendment) Act 2022 is a wake-up call for all businesses in Malaysia. The 10X increase in fines means non-compliance can now be a costly mistake. Employers must act now to strengthen workplace safety, avoid severe penalties, and protect their workforce.
With hefty fines and stricter enforcement, the real question is: Is your workplace truly compliant? Now is the time to make safety a priority!
