In a statement today, SSM addressed concerns raised by Transparency International Malaysia and discussions on social media.
It asserted that the Companies (Access to Register and Information Relating to Beneficial Ownership) Regulations 2025 are in line with international best practices and Malaysia’s national security interests.
The new regulations, which took effect on Jan 10, limit access to BO information to specific parties.
SSM said the framework was introduced under the Companies (Amendment) Act 2024 and the Limited Liability Partnerships (Amendment) Act 2024, which came into force on April 1 last year and Jan 31 this year, respectively.
These reforms were developed following extensive public consultation and debate in Parliament.
“Malaysia’s BO reporting framework is designed to balance transparency with the protection of personal data, national interests and security,” it said.
Under the regulations, only a defined group of users are granted access to BO data.
They include the beneficial owner or their authorised representatives, enforcement agencies listed under the Anti-Money Laundering Act, reporting institutions conducting anti-money laundering and counter-terrorism financing work, and the finance ministry for procurement-related matters.
SSM said this approach aligns with global trends.
Asean countries (including Singapore, Thailand and Indonesia), China, Japan and South Korea also restrict access to BO data, limiting it to regulatory or government bodies.
In Europe, nations like France, Germany and the Netherlands have curtailed public access following a 2022 European Court of Justice ruling that unrestricted public access constitutes a serious infringement of privacy and data protection rights.
“These global developments signal a broader international shift towards re-evaluating the extent of public access to BO data, with an emphasis on balancing corporate transparency with personal data protection and national security,” it said.
To date, more than 636,000 active companies in Malaysia – representing more than 92% of the total – have complied with the new BO reporting requirements.
SSM has also announced that similar access regulations will soon be introduced for limited liability partnerships.
It emphasised that enforcement provisions are stringent, and any person found guilty of knowingly providing false BO information may face up to 10 years’ imprisonment, a RM3 million fine, or both.
Institutions granted access to BO data must report any discrepancies with their own records within 30 days or risk penalties.
“SSM remains committed to transparency, good governance and accountability, while ensuring that personal data and national interests are safeguarded,” it said.
It welcomed engagement with stakeholders to continuously improve the effectiveness and credibility of Malaysia’s corporate regulatory framework.