As 2025 draws to a close, Malaysians are set to see a series of new laws and regulations come into effect starting in 2026. These changes cover key areas such as taxation, traffic enforcement, digital safety, business compliance, and public hygiene, and are expected to impact daily life, businesses, and public behaviour.
Digital Safety & Online Regulations
Online Safety Act 2025
- Social media ban for children under 16.
- Stronger parental controls required for online service providers.
From 1 January 2026, messaging and social media platforms with more 8 million Malaysian users will be automatically licensed as regulated service providers. These changes aim to make the internet safer, particularly for young people, but they will also require digital platforms to tighten age checks and content safety measures.
New Traffic Fines & Demerit System
Standardised Traffic Compound System
- 50% off if paid within 15 days
- 33% off if paid within 30 days
- Full amount after 30 days
- Court action or road license renewal block if ignored after 60 days
This move applies to both JPJ and police traffic fines. Alongside this, the Kejara 2.0 demerit points system is being tightened to ensure points apply whether or not summonses are paid, which could lead to faster suspensions or renewal blocks for repeat offenders.
Key Financial & Tax Changes for 2026
Under the e-Invoicing rollout, companies with annual revenue between RM1 million and RM5 million will be required to comply starting 1 January 2026. Businesses earning between RM500,000 and RM1 million will follow later, with mandatory compliance beginning on 1 July 2026.
Stamp duty on residential property purchases by foreigners will be doubled from 4% to 8%, increasing acquisition costs for foreign buyers. In addition, Limited Liability Partnerships (LLPs) will be subject to a 2% tax on profit distributions exceeding RM100,000. Meanwhile, the stamp duty exemption threshold for employment contracts will be raised significantly, from RM300 to RM3,000 per month, reducing compliance costs for employers and employees.
New Personal Reliefs for Malaysians:
- RM1,000 for local tourism under Visit Malaysia 2026.
- RM3,000 for childcare, including after‑school transit for children up to 12.
- RM2,500 for CCTV installations and household waste grinders.
Key Public Hygiene & Waste Management Changes
Littering Penalties:
- Fine: Up to RM2,000.
- Community service: Up to 12 hours (washing public toilets or sweeping streets)
In Selangor, illegal dumping offences will carry heavier penalties, with fines ranging from RM1,000 to RM100,000 under the Solid Waste and Public Cleansing Management Act 2007.
Meanwhile, from January 2026, food premises in 20 city areas must comply with the BMW toilet standard in order to renew their business licenses. The BMW standard requires toilets to be Bersih (clean), Menawan (attractive), and Wangi (pleasant-smelling). The rule applies to restaurants, cafés, and retail outlets, and failure to meet the standard may result in enforcement action or license renewal rejection.
As we approach the implementation of these new rules and laws in 2026, it’s crucial for the public to stay informed and adapt to these changes. These measures are designed to enhance our society, and we all share the responsibility to embrace and utilize them effectively for a better future.
Source: SAYS
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