Charting a Responsible Future: Malaysia's National Action Plan on Business and Human Rights 2025-2030

Perdana Putra
The Perdana Putra which houses the office of the Prime Minister of Malaysia. Credit: Wikimedia Wikimedia

Integrating human rights into business is essential for sustainable growth and success. It's not just managing risks, it fosters a more just society, promotes stable economic expansion, increases brand value, attracts talent, and builds stakeholder trust.

The United Nations Guiding Principles on Business and Human Rights (UNGPs), adopted by the UN in 2011, provides the global benchmark for preventing and addressing business-related human rights abuses. These are built upon three core pillars: The State's duty to protect, corporate responsibility to respect, and access to remedy. Embedding these principles throughout value chains benefits both societal well-being and a business's long-term viability.

Within ASEAN, the drive for National Action Plans on Business and Human Rights (NAPBHR) gained traction with Indonesia's draft plan in 2017, followed by Thailand's adoption of the region's first NAPBHR in 2019, signalling growing regional momentum.

Malaysia just launched its NAPBHR 2025-2030 on the 12 August 2025 and this is a significant stride forward, this initiative is spearheaded by the Legal Affairs Division, Prime Minister's Department (BHEUU, JPM), under the stewardship of YB Dato' Sri Azalina Othman Said. This action plan demonstrates Malaysia's commitment to embedding human rights principles within its economic activities, ensuring responsible and sustainable growth.

The development of this plan is done carefully with the collaboration with related line agencies namely the Ministry of Human Resources, the Ministry of Natural Resources and the Environment and the Malaysian Anti-Corruption Agency. This plan primarily focuses on three thematic areas; Labour, Environment, and Governance issues. The writing of this plan was closely monitored by a dedicated Working Group comprising the Legal Affairs Division, SUHAKAM and UNDP.

The development of Malaysia's NAPBHR is the culmination of years of foundational work and extensive collaboration. This robust framework has been built through close coordination between the Government (BHEUU, JPM), SUHAKAM and Business and Human Rights (BHR) specialists, supported by the United Nations Development Programme (UNDP). This collaboration has been instrumental in shaping a plan specifically tailored to Malaysia's unique context.

Malaysia's journey towards a National Action Plan began in 2010 with SUHAKAM's human rights discussions, leading to the development of a strategic framework in 2015. Regional momentum increased when the ASEAN Intergovernmental Commission on Human Rights (AICHR) encouraged member states to adopt such plans. Inspired by these advancements and pressing domestic needs, the Malaysian government announced its intention to develop its own NAPBHR in 2019, with BHEUU, JPM tasked with spearheading its development and implementation.

The Imperative for Implementation: Why the NAPBHR Matters

Implementing Malaysia's National Action Plan on Business and Human Rights (NAPBHR) is crucial for the nation's sustainable development and it strengthens its international standing. This framework serves several strategic purposes: it sets clear expectations by localising the UN Guiding Principles on Business and Human Rights (UNGPs) for BHR practitioners. It also enhances policy alignment, unifying national frameworks and coordinating cross-ministerial efforts for improved resource allocation and stronger collaboration on business and human rights issues. The plan serves as a guide to businesses on what is expected and what can be done to further enhance human rights in businesses.

The core principles of the UNGP are further reiterated through key linkages between the states duty to protect and the corporates duty to respect with a clear path for access to remedy should there be human rights violations. This is paramount during the implementation phase as these linkages must not only be clear but workable. In the international front, the NAPBHR will help build systemic confidence within its systems and reduce trust deficits. This will ultimately, demonstrate a clear commitment to global human rights norms through this plan and significantly strengthen Malaysia's international reputation and credibility on the world stage.

What's in the NAPBHR 2025-2030?

The NAPBHR outlines key strategies across three critical thematic priorities: Governance, Labour, and Environment. The National Baseline Assessment (NBA) was developed to critically underscore key areas that the NAP should focus on. The NBA assessed the current state of affairs with regards to policies and strategies in place and where the gaps are pertaining to those polices and strategies. This clearly provides a definitive guide on what should be addressed by the NAP itself.

Under Governance, the plan focuses on strengthening the overarching framework of laws, policies, and enforcement to effectively manage the relationship between business and human rights, ensuring robust and ethical decision-making. The plan highlights key reforms the government should undertake ranging from legal reforms like the Freedom of Information legislation, amendments to the Official Secrets Act 1972, amendments of the Whistleblowers Protection Act 2010, establishment of an oversight body for anti-corruption, amendments of the Persons with Disabilities Act 2008, Anti-discrimination against women, the establishment of Ombudsman Malaysia and the development of a Supply Chain legislation for Malaysia. The governance pillar also focuses on procurement, investment and tax as well as diversity, equity and inclusion and human rights obligation.

The Labour component addresses persistent challenges by aiming to uphold fundamental labour rights at work, including tackling issues like forced labour and promoting fair working conditions across industries. The plan also reiterates the need to align the Employment Act 1955 with other Labour Ordinances, enhance participation of workers in trade unions, social protection, matters pertaining to child labour and all forms of labour exploitation, labour and employee benefits, migrant workers and the emerging gig economy workers.

Lastly, the Environment priority recognises significant environmental threats stemming from business activities and seeks to mitigate these harms by promoting responsible, sustainable practices, thereby aligning economic growth with ecological preservation and human well-being. The area of coverage includes constitutional protection for environmental rights, corporate environmental due diligence, water and waste management issues, polluters pay principle and the precautionary principle, SLAPP and anti- greenwashing legislation and a more transparent EIA report.

The NAPBHR is not a new initiative as there have already been calls for sustainable development and this NAP fits nicely into that framework. Similarly, businesses have been encouraged to practice ESG in their operations as it is very much linked with respecting workers, protecting the environment and sustaining the bottom line. This is the same as what the NAP is propagating, the only difference here is the NAPBHR is couched in "rights", the importance to uphold human rights in business and the need for the state to provide adequate protection through sound policies and laws to uphold this right and ultimately to ensure there is access to remedy as an avenue for human rights violations. The concept of BHR is an over-arching framework that covers all the components needed for a fair, responsible and just business environment.

What's next for the NAPBHR in Malaysia?

The recent Putra Heights gas pipeline leak in April 2025 and following the gruesome accident that took the lives of 15 UPSI students are just two notable incidents that stresses the importance of the three (3) guiding principles of BHR. We ask ourselves if the state has done enough to protect, has the corporate taken adequate precaution to ensure that they practice responsible business conduct and we wonder if there is adequate access to remedy specifically for cases of human rights violations.

The recent launch of the NAPBHR for Malaysia is a significant commitment for the country. This is not merely a plan but is an actionable document in which goals are carefully chosen through years of deliberation with stakeholders including consultations with agencies, businesses and CSO's. The plan stipulates immediate action to be taken within a 12-month period which will kick start the implementation process.

The implementation leverages on the strength of the existing governance structure including a Steering Committee, Technical Committee and a BHR Working Group. The collective function of this mechanism includes monitoring, evaluation, training and learning with a multi-stakeholder's group on BHR comprising relevant agencies, businesses, academia and CSO's.

The Plan has highlighted among others several key actions including, hand holding with businesses on the implementation of the NAPBHR, a self-assessment document to assess where businesses are with reference to BHR, training sessions with agencies and businesses, rating schemes and award, the potential establishment of a Human Rights Tribunal, the potential development of anti- SLAPP legislation, Supply Chain legislation and Corporate Manslaughter legislation for Malaysia.

Forging Ahead: Collective Action for NAPBHR Implementation

A robust governance framework like Malaysia's NAPBHR is crucial for businesses across Malaysia and ASEAN. By integrating diverse stakeholder input, it bridges commercial needs with human rights, fostering responsible, fair, and respectful growth. Integrating human rights isn't just ethical; it's a smart business strategy. It significantly enhances brand reputation and customer loyalty, as consumers increasingly seek socially responsible companies. This also cultivates a better work environment, attracting and retaining top talent, boosting productivity and innovation. Moreover, it proactively minimises legal and reputational risks, ensuring greater stability and market access.

The launch of Malaysia's first NAPBHR is a vital initial step, with the Government committed to its demanding implementation over the next five years. This initiative aligns with Malaysia's 2025 ASEAN Chairmanship theme of "Inclusivity and Sustainability" and was further amplified by a dedicated Business and Human Rights session at the ASEAN Law Forum 2025 in August, focusing on robust regulation, institutional strengthening, regional frameworks, and enhanced corporate responsibility.

(Dr. Punitha Silivarajoo is the Deputy Director General (Policy & Development), Legal Affairs Division, Malaysian Prime Minister's Department.)

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