Legal Updates for April 2024

Key Changes to the Occupational Safety and Health Legislation in Malaysia

The Occupational Safety and Health Act 1994 ("OSHA") establishes the legal framework relating to the occupational safety and health in Malaysia. The overall objectives of the OSHA are to:

(a)        secure the safety, health and welfare of persons at work against risks to safety or health arising out of the activities of persons at work;

(b)        protect persons at a place of work other than persons at work against risks to safety or health arising out of the activities of persons at work;

(c)        promote an occupational environment for persons at work which is adapted to their physiological and psychological needs; and

(d)        provide the means where the associated legislation on occupational safety and health may be progressively replaced by a set of regulations and approved industry codes of practice operating in combination with the provisions of the OSHA designed to maintain or improve the standards of safety and health.

After almost three decades, the Occupational Safety and Health (Amendment) Act 2022 ("Amendment Act") was passed with royal assent on 4 March 2022. It will come into force on 1 June 2024, together with two new subsidiary legislation, namely the Occupational Safety and Health (Plant Requiring Certificate of Fitness) Regulations 2024 and the Occupational Safety and Health (Licensed Person) Order 2024. The Amendment Act brings about substantial amendments to the OSHA which seeks to enhance the existing legislation on occupational, safety and health in Malaysia, in particular by expanding the scope and applicability of the OSHA to all places of work throughout Malaysia including the public services and statutory authorities, with very limited exceptions.

This Update provides some of the significant amendments introduced by the Amendment Act.

Large Scale Solar Photovoltaic Plant – Fifth Competitive Bidding Round (LSS PETRA)

Following the announcement by the Ministry of Energy Transition and Water Transformation (PETRA) in January 2024, the Energy Commission ("EC") had on 1 April 2024 issued the following documents (in Bahasa Malaysia) relating to the fifth competitive bidding round for the Large Scale Solar ("LSS") programme, also known as LSS-Peralihan Tenaga SuRiA (“LSS PETRA”), via its website to call for bids to develop up to 2,000MWac of solar power plants in Malaysia:

  1. Notification Notice of the Implementation of the Competitive Bidding Program for the Development of Large Scale Photovoltaic (PV) Solar Power Plants (Large Scale Solar - LSS) in Peninsular Malaysia; and
  2. Procedures for Purchasing Documents - Request For Proposal (RFP) Competitive Bidding Program for the Construction of Large Scale Solar Photovoltaic (PV) Plant Janakuasa (LSS) in Peninsular Malaysia.

The Request for Proposal ("RFP") may be purchased online from 9.00am on 1 April 2024 to 5.00pm on 16 April 2024 at a price of Ringgit Malaysia three thousand (RM3,000) per RFP.

This Update provides the key features of LSS PETRA.

Solar for Rakyat Incentive Scheme (SolaRIS)

On 27 March 2024, the Ministry of Energy Transition and Water Transformation announced a special incentive known as the Solar for Rakyat Incentive Scheme ("SolaRIS"). The SolaRIS aims to encourage the installation of solar photovoltaic systems by domestic consumers. In line with the SolaRIS, the Government has also announced a further additional quota of 100MW for the Net Energy Metering Rakyat programme. This Update highlights the key features of these initiatives.