10 Things Every Malaysian Employer Must Know About the OSH Act 1994 [Act 514], as amended by the OSH (Amendment) Act 2022 [A1648]

The regulatory landscape for business owners in Malaysia changed permanently when the Occupational Safety and Health (Amendment) Act 2022 (OSHA 2022) officially came into full force on 1 June 2024. Signed into effect by the Ministry of Human Resources, this amendment marks the most radical overhaul of Malaysian workplace safety laws in three decades.

If you are a director, HR manager, or business owner operating in Malaysia, a passive approach to safety is no longer just a liability — it is a direct path to severe financial penalties and potential jail time. The old protections of the Factories and Machinery Act 1967 (FMA) are gone, replaced by a comprehensive framework that leaves zero room for non-compliance.

Here are the 10 critical statutory shifts every Malaysian employer must understand to protect their business and their people.

Naja Safety runs HIRARC with your team and trains your supervisors to keep the register current.

1. The Act Now Covers Almost Every Workplace

Under the old framework, safety laws primarily targeted heavy industries like manufacturing, construction, and mining. The amended Act broadens the scope significantly.

The law now applies to most places of work throughout Malaysia, including the service sector, retail, tech startups, statutory authorities, public services, and even remote work corporate setups. Section 1(2) extends it to all places of work throughout Malaysia including in the public services and statutory authorities. If you employ people in Malaysia, you are likely covered.

Exclusions. The Act does not apply to: domestic employment as a domestic servant within the meaning of the Employment Act 1955; the armed forces; and work on board ships governed by the Merchant Shipping Ordinance 1952 and the Sabah and Sarawak merchant shipping ordinances of 1960 (Act 514, First Schedule). Self-employed persons have duties too: section 18B's risk-assessment duty names them alongside employers and principals.

2. The "5-Worker Rule" Mandates a New Corporate Appointment

The most misunderstood trigger in the market is the threshold for mandatory safety personnel. Under the new Section 29A, if your company employs five or more employees, you are statutorily required to appoint a dedicated Occupational Safety and Health Coordinator (OSH Coordinator).

This means that small and medium enterprises (SMEs), small offices, and boutique agencies that previously flew under the regulatory radar are now fully required to have an in-house OSH-C.

3. OSH Coordinators Must Be Professionally Trained

The Act doesn't itself require coordinator training. DOSH recognises a 21-hour OSH Coordinator course run by DOSH-registered training centres. The coordinator must be one of the employer's own employees.

Failing to appoint a competent OSH Coordinator leaves your organization open to non-compliance citations during a routine labour or safety inspection.

That training must be delivered by a training centre registered with DOSH for OSH Coordinator competency. Naja Safety is not on that register — we will tell you who is.

4. Maximum Penalties for General Duty Breaches Increased Tenfold

The cost of ignoring workplace safety has drastically increased. Under the previous Act, the maximum fine for general employer duty violations was RM50,000.

5. Directors and Officers Face Personal Liability Under Section 52

One of the most significant changes is the strengthened personal accountability under Section 52. If a company commits an offence under the Act, directors, CEOs, managers, and corporate officers may be held personally liable if the offence was committed with their consent, connivance, or was attributable to their neglect.

However, Section 52 also provides a due-diligence defence: an officer who can prove they exercised all due diligence to prevent the commission of the offence shall not be personally liable.

6. Risk Assessment Is Now a Statutory Duty (Section 18B)

Employers must now conduct documented risk assessments for all operational processes. Section 18B of the amended Act makes this a statutory duty, not merely a recommendation.

DOSH’s recommended methodology is Hazard Identification, Risk Assessment, and Risk Control (HIRARC). While HIRARC is the standard DOSH expects to see, the legal obligation is the underlying duty to assess and control risk — not the format itself. Failing to produce up-to-date risk assessment documentation during a DOSH inspection can constitute a direct violation of employer duties.

7. The Right to Remove Yourself from Imminent Danger (Section 26A)

Section 26A gives employees the right to remove themselves from imminent danger if the employer, once informed, fails to act.

Employers must establish clear protocols to receive, assess, and rectify these internal safety reports immediately.

8. The Repeal of the Factories and Machinery Act 1967 (FMA)

To streamline enforcement, the old FMA 1967 has been officially repealed and integrated into the single, unified framework of the amended Act.

All regulatory matters concerning industrial machinery, certificates of fitness (CF), and factory designs are now managed under modern subsidiary regulations under the DOSH framework.

9. Stricter Statutory Duties Mandated for "Principals"

If your business utilizes sub-contractors, freelancers, or third-party service providers, you cannot contract away your safety liabilities.

The amended Act places explicit duties on "Principals" to ensure the safety and health of everyone working under their broader corporate umbrella. If a contractor's employee gets injured on your premises, your business can be held legally responsible for failing to audit the contractor's safety protocols.

10. You Must Establish Clear Written Emergency Procedures

Section 15(2)(f) requires the development and implementation of procedures for dealing with emergencies at the workplace. Good practice also means documenting them and training staff. This goes beyond having a basic fire extinguisher on the wall.

Your emergency procedures must account for medical crises, industrial accidents, and sudden structural failures, and they must be actively communicated to all staff members through training drills.