FATF status

Malaysia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Malaysia was undertaken in 2018. According to that Evaluation, Malaysia was deemed Compliant for 20 and Largely Compliant for 18 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 4 of the Effectiveness & Technical Compliance ratings.

The Malaysian government has implemented various measures to combat corruption, including the establishment of the Malaysian Anti-Corruption Commission (MACC) and the introduction of the Whistleblower Protection Act. Despite these efforts, corruption remains a concern, particularly in public procurement, where favoritism and political connections can influence outcomes. Recent amendments to anti-corruption laws have introduced corporate liability, but enforcement challenges persist, as highlighted by the low number of businesses with effective anti-corruption programs.

Malaysia's economy grew by 3.7 percent in 2023, supported by resilient domestic demand and a recovery in tourism, following a post-COVID rebound. The country attracted $39.7 billion in actual foreign investment in 2023, bolstered by its strategic location, skilled workforce, and developed ICT infrastructure, while the government continues to implement reforms to enhance competitiveness and address issues related to subsidies and reliance on foreign labor.

Malaysia's investment climate is favorable for foreign direct investment (FDI), supported by a strategic location, a skilled workforce, and a robust manufacturing ecosystem. In 2023, the country approved $69.5 billion in investments, with actual foreign investments reaching $39.7 billion, bolstered by government incentives aimed at attracting high-value jobs and integrating local companies into global supply chains. The government continues to implement reforms to enhance competitiveness and streamline investment processes, making Malaysia an attractive destination for foreign investors.