It warned that these regulations risk undermining corporate transparency reforms and public accountability.
TI-M president Raymon Ram said the implementation of the restrictive regulations in January had cast doubt over Putrajaya’s commitment to transparency.
“Restricting access to BO data, despite no such prohibition under Division 8A of the Companies Act 2016, the Companies Commission of Malaysia Act 2001, or the Capital Markets and Services Act 2007, runs counter to these principles.
“Transparency must be meaningful and accessible, not symbolic and obstructed,” he said in a statement.
In 2024, an amendment to Division 8A of the Companies Act 2016 was introduced to define BO and mandated companies to maintain and update such registers.
However, the Companies (Access to Register and Information Relating to Beneficial Ownership) Regulations 2025, which came into force on Jan 10, significantly limited access to these registers.
Currently, access is restricted to the beneficial owners themselves, their authorised representatives, Bank Negara Malaysia, select enforcement and financial bodies, and the finance ministry. Requests must also be made in person and with written institutional authorisation.
Ram said that with such restricted access, journalists, civil society groups and researchers were effectively barred from accessing and using the data to expose corruption, conflict of interest and illicit fund transfers.
He cited countries like the UK, Denmark and Ukraine, which have implemented open BO registers to combat corporate secrecy, and build investor and public trust.
“Open data empowers stakeholders to monitor who controls companies, especially those linked to public procurement, state contracts or politically exposed persons.”
Ram also suggested implementing secure digital access platforms to streamline information retrieval and reduce bureaucratic burdens.
He also called for the strengthening of civil society engagement by enabling oversight and enacting a robust Freedom of Information Act.
He said these steps are essential if Malaysia is serious about achieving the goals outlined in the National Anti-Corruption Strategy and becoming one of the top 27 countries in the Corruption Perceptions Index by 2028.