MACC Act Section 17A Malaysia | Directors And Senior Managers Liable Too ?

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Directors and Senior Managers Will Be Liable Under MACC Act Sections 17A

To All Directors In Malaysia, If You don't know this "ABC", it May Cost You RM 1,000,000 !


On 5 April 2018, the new Section 17A of the Malaysian Anti-Corruption Commission Act 2009 ("MACC Act 2009") was passed which introduces corporate liability on commercial organizations in Malaysia. The introduction of Section 17A of the MACC Act 2009, which takes effect on 1 June 2020, enables commercial organizations and associated persons, especially the top management including senior managers or directors, are also liable and can be punished if their employees or associates are involved in bribery or corruption.

For example:

Loong is a Sales Manager in a logistic company. He always buy some "gifts" to his key clients who always grant the tender to him. Some internal staffs and other suppliers are not happy as they deem that the tender process is biased. Some complaints to the management of the logistic company but no actions are taken. If Loong is being investigated by the MACC later, he may be possibly charged for paying bribes to the customers to get sales. The company directors may also be liable for not taking "adequate procedure" to stop the bribery.

Punishment Under Section 17A


If you, as the directors or seniors managers are convicted, the penalty under Section 17A (2) is a fine of not less than 10 times the value of bribe or RM1 million, whichever is higher, or imprisonment for up to 20 years, or both.

So it is important for you to learn the policy and regulation of Anti Bribery and Corruption (ABC) to minimize being liable for bribery and corruption committed by your staff.

Some people may think : "Well, my company implements "No Gift Policy", So I don't have to worry about it. If any of my staffs convicted, it is his/her problem, not my (directors) problems"

Unfortunately, this may not be considered as "adequate procedures" under the section 17A. According to the Malaysian Anti-Corruption Commission (MACC) investigation director Datuk Norazlan Mohd Razali said :

"Section 17A of the MACC Act 2009 does not provide immunity to the corporate sector if the organisation is suspected to be involved in bribery, even though it already has its own corruption prevention procedures. For example, an organisation may have policies regarding such procedures, but do not have proper training to deal with bribery cases involving their employees and they also do not educate their staff. So, the procedures are ineffective and the company can be charged in court in the event of corruption."


So, As a director, What should you do now?

We are a well-established corporate training company that has helped many companies to train their workforce effectively over 12 years. Our trainers are MACC resource trainers.

In this 1 day (7 hours) workshop, you will learn about the Anti Bribery & Corruption - Individual and Corporate Liability under the Malaysian Anti Corruption Commission Act 2009 and how it might impact your organisation.

You can click the Whastspp icon below to enquire more details about the workshop, or, directly regsiter through below "Register Now" Link

Note : This Workshop is HRDF Claimable


Course Objective

By the end of the course you will be able to:

  • Understand and comprehend the basics about Ethical conduct and its related principles,
  • Identify existing / potential ethical conduct within the organization or emanating from external sources, which may have an impact on Business Continuity activities
  • Explore Legal Impact(s) due to ineffective management of unethical business conduct.
  • Understanding and implementation of Anti Bribery Laws in Malaysia
  • What directors and senior managers shall do to minimize the risk

Public Program Date:

Classroom Training - 18 September 2020 (9am to 5pm)

Our online Courses are HRDF Claimable. Kindly Contact Us for the arrangment of HRDF claiming, or Whatsapp us if you have any questions.