Malaysia’s National Action Plan for Business and Human Rights: Implementation Kicks Off

The Legal Affairs Division of the Prime Minister’s Department has launched the National Action Plan on Business and Human Rights (2025-2030) (“NAPBHR”)!

Launch of Malaysia’s National Action Plan

The Malaysian government has launched the National Action Plan on Business and Human Rights (2025-2030) (“NAPBHR”) on 12 August 2025. YB Dato’ Sri Azalina Othman, Minister in the Prime Minister’s Department (Law and Institutional Reform) officiated the ceremony held at the Asian International Arbitration Centre (AIAC) in Kuala Lumpur. The NAPBHR is our first national framework that integrates human rights into business and corporate governance. Read more about the launch event on our News post here.

Why has Malaysia come up with it?

Human rights are fundamental rights and freedoms inherent to all human beings. They are universally recognised legal entitlements to ensure that we are able to live freely and with dignity. Internationally, the Universal Declaration of Human Rights (“UDHR”) is the foundational document for all international human rights law. Nationally, the basis for human rights protection is constitutionally grounded in the fundamental liberties (in Part II of the Federal Constitution).

In the business context, the United Nations Guiding Principles on Business and Human Rights (“UNGPs”) is a framework guiding responsible business conduct and addressing human rights abuses in business operations and global supply chains. At the global level, the UNGPs were adopted in 2011. Since then, the UN Working Group on Business and Human Rights have strongly encouraged states to develop their respective National Action Plan to implement the UNGPs domestically, according to each state’s circumstances and priorities.

In Malaysia, the development of the NAPBHR was spearheaded by the Legal Affairs Division of the Prime Minister’s Department (Bahagian Hal Ehwal Undang-Undang, “BHEUU”). The Human Rights Commission of Malaysia (“SUHAKAM”) provided foundational work and strategic policy direction, based on its Strategic Framework in 2015, while the United Nations Development Programme (“UNDP”) provided technical support.

In order to develop the NAPBHR, Malaysia’s first National Baseline Assessment (“NBA”) was initiated in July 2022 to assess the legal and policy gaps in UNGP implementation.  It reviewed some of the most salient human rights impacts by businesses, particularly those affecting vulnerable groups like migrant workers and indigenous peoples. The NBA was completed and published in August 2024 (available here).

Based on the NBA, and with further stakeholder and public engagement sessions, the Malaysian government then produced the NAPBHR.

We attended the event: Unveiling Insights and Actions: Malaysia's Baseline Assessment on Business and Human Rights (25 October 2023)

What does it cover?

The NAPBHR is a government-led policy document that sets a framework and expectations for both the government and the private sector. Its timeline requires for specific actions to be completed by 2030. It articulates Malaysia’s expectations on all business operating in the country, from multinational corporations (MNCs) to small and medium-sized enterprises (SMEs).

Reflecting the UNGPs, the NAPBHR is anchored on three key pillars:

1. “The State duty to protect human rights” – affirming that all countries owe a duty to uphold the human rights of their people, such as the fundamental rights guaranteed in our Federal Constitution;

2. “The corporate responsibility to respect human rights” – ensuring that business activities do not contribute to the infringement of human rights, especially towards marginalised communities; and

3. “Access to remedy” – where victims of human rights infringements are able to seek remedial actions and compensation for their loss and suffering.

The NAPBHR covers the following key thematic areas:

• Governance – promoting the integration of human rights into corporate operations conducting due diligence, and strengthening anti-corruption efforts

• Labour – addressing issues such as forced labour, child labour, fair wages, and the rights of workers

• Environment – embedding environmental and human rights commitments into corporate policies, preventing greenwashing, and engaging with indigenous communities and environmental defenders

• Special issues – focusing on other areas such as children’s rights, digital rights, and the rights of refugees and asylum seekers

Actions needed now

The core expectation for the private sector under the NAPBHR is the corporate responsibility to respect human rights. This expectation applies to all companies, regardless of their size, sector, or location, throughout their operations and value chains.

Specifically, the NAPBHR states that companies should:

1. Adopt a progressive policy that articulates the company’s commitments towards human rights, responsible business conduct, and implementing Human Rights and Environmental Due Diligence (“HREDD”).

2. Implement HREDD by undertaking to proactively identify, prevent, mitigate and account for how the company addresses its actual and potential adverse human rights impacts. This also includes ensuring that HREDD policies are embedded into core management systems and integrated across all regular business processes (i.e., governance, risk management, procurement, and compliance)

3. Establish and operate effective operational-level grievance mechanisms to allow affected individuals and communities to raise complaints regarding the company’s human rights impacts.

4. Communicate publicly and transparently on how human rights impacts are addressed by the company. This means that reporting will shift from basic “sustainability” disclosures to the provision of substantive information, which are evidence-based and audited for validity.

In summary, the private sector’s core duty under the NAPBHR is to embed HREDD into every part of its operations and value chain to proactively prevent, mitigate, and remedy any adverse impacts on human rights.

Some highlights for Kiu & Co.

Reflecting on our work in accelerating the transition to sustainable development, the launch of the NAPBHR is a significant milestone. It is to-date, Malaysia’s clearest policy document about the role of business in Malaysia in relation to human rights, accountability, and sustainable development. Businesses are now officially expected to respect human rights. Where all matters regarding human rights used to be the exclusive responsibility of the public sector, this is a paradigm shift in the narrative of the role of business.

We welcome the directness of the NAPBHR in promoting HREDD as it frames due diligence as a crucial element for responsible business conduct. The NAPBHR has also holistically described the elements needed of effective HREDD processes and illustrates lenses that should be considered (e.g., gender equality, children’s rights, indigenous peoples’ rights). We strongly support the NAPBHR’s emphasis on meaningfully consulting stakeholders in the course of business, reflecting the fact that businesses must respect human rights in order to earn and retain their social license to operate.

We are particularly delighted about the commitment to recognise the right to a clean and healthy environment in the Federal Constitution. Additionally, the NAPBHR serves as an important policy direction for institutional and legal reform to enhance environmental justice. For example, the proposed increase in Free Prior Informed Consent (FPIC) protocols and the development of legislation addressing Strategic Lawsuit Against Public Participation (SLAPP).

Lastly, we find that the NAPBHR’s emphasis on the distinctions between ESG and BHR (at pages 18-19) to be a missed opportunity. ESG is underpinned by the principles of sustainable development, which in turn are premised upon human rights principles Indeed, BHR should be seen as the necessary, authoritative, and legally informed engine that drives credible and impactful corporate action in any ESG strategy.

Conclusion

The NAPBHR is more than just a 5-year plan for the Malaysian government to address human rights within the business context. It is also a powerful tool to be harnessed by the private sector to be more competitive and to stay at the forefront of the new aspirations of markets.

“Businesses must measure success not only by profits, but by ethical conduct, sustainability, and respect for human rights.” - YB Dato’ Sri Azalina Othman, Minister in the Prime Minister’s Department (Law and Institutional Reform) during the Launch of the NAPBHR

Most importantly, the NAPBHR has introduced and set the expectations for a rights-based approach to economic development and business activities, thereby establishing the crucial precondition for Malaysia’s true progress toward sustainable development that leaves no one behind.