NAPBHR Malaysia 2025-2030: What SME needs to know?
Malaysia’s National Action Plan on Business and Human Rights (NAPBHR) 2025–2030, issued by the Prime Minister’s Department Legal Affairs Division, sets out the Government’s strategic direction and policy priorities for the next five years. This document is not merely aspirational; it signals a clear regulatory and governance shift that businesses operating in Malaysia should take seriously. Companies that act ahead of the regulatory shift are often better positioned to strengthen market access, investor confidence, and long-term business resilience.
Aligning Economic Growth with International Human Rights Standards
Beyond tragedies prevention, the NAPBHR positions human rights as an economic strategy. Malaysia aims to enhance its global competitiveness by aligning national practices with international human rights standards. This alignment is critical for maintaining access to global supply chains, attracting responsible investors, and meeting the expectations of multinational buyers.
The document makes it clear that economic growth and human rights protection are not opposing goals. Weak human rights governance undermines investor confidence, supply chain resilience, and long-term national development. By embedding human rights into business practices, the Government intends to strengthen both economic stability and international credibility.
Legal Reforms Targeting Governance, Labour, and the Environment
A central message of the NAPBHR is that human rights are placed at risk when three pillars are compromised:
- Governance
- Labour
- Environment
To address this, the Government plans to re-examine existing laws and introduce new legislation where gaps are identified. Laws that restrict consumers or workers from filing complaints against companies may be repealed, as they hinder transparency and accountability. In contrast, new legal instruments—such as a Corporate Manslaughter Act and enhanced public reporting requirements—are being considered to strengthen corporate responsibility.
Concrete examples highlighted in the document include:
• Retaliation against whistleblowers
• Exposing workers to hazardous working conditions
• Environmental damage affecting the land and livelihoods of Indigenous communities
• Corporate reporting of emission and its reduction plan
These scenarios are recognized as direct human rights risks that demand legal and institutional reform.
What Businesses Should Do Before Regulations Are Enforced
Importantly, the NAPBHR does not position businesses as passive recipients of future regulation. Instead, it strongly encourages proactive adoption of best practices, regardless of company size. Businesses are advised to protect human rights interests early, rather than waiting for enforcement actions.
Many of the “best practices” outlined in the document are already familiar to companies involved in global supply chains audits such as:
• Supplier Codes of Conduct
• Corporate Social Responsibility (CSR) frameworks
• Third-party social audits such as SMETA, RBA, and similar standards
For manufacturing companies that already comply with social audit requirements imposed by EU or multinational buyers, you are largely prepared for the upcoming policy direction under the NAPBHR.
For companies who are new to this information, NAPBHR highlighted the need for:
• Human Rights Risk Assessments (HRRA)
• Formal Human Rights Policies
• Worker representation and freedom of association
• GHG emission calculation
• Stakeholder engagement
• Effective grievance mechanisms
• Public reporting of human rights and environmental risks
How Thinkinbio Can Support Your NAPBHR Readiness
As businesses prepare for the policy direction outlined in the NAPBHR 2025–2030, practical implementation remains the greatest challenge. Thinkinbio supports organizations in providing awareness trainings in house and translating these human rights expectations into workable, audit-ready systems. Our services include Human Rights Risk Assessments (HRRA), development of Human Rights and Labour Policies, establishment of effective grievance mechanisms, and guidance on worker representation and stakeholder engagement.
Want to learn how we can support your goals?
Explore more about our services here.
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