April 2025 Monthly Roundup

Your quick guide to policy shifts affecting workforce and business mobility

New Penal Code Provisions Add Teeth to Workplace Bullying and Constructive Dismissal Claims

The recently passed Penal Code (Amendment) Act 2025 introduces several new provisions that, while general in scope, carry direct implications for employers and workplace misconduct.

One key update is Section 507b, which criminalises threatening, abusive, or insulting words or acts intended to cause (or likely to cause) harassment, distress, fear, or alarm. This now includes:

• Insults or intimidation from employers
• Negligence in responding to bullying complaints
• Toxic behaviours that contribute to psychological harm

In a workplace context, such acts could not only support a constructive dismissal claim under Section 20(1) of the Industrial Relations Act 1967, but also expose the employer to criminal liability.

Other related updates include:

• Section 507d: Where abusive conduct leads a person to harm themselves (including suicide), the offender faces additional penalties.
• Section 507e: Publishing personal identity information that causes harm (including psychological harm) is now an offence.
• Section 507g(1): Broadens the definition of “harm” to include harm to a person’s body, mind, reputation, or property.

Employers should urgently review grievance procedures, management conduct, and investigation protocols. Failing to address harassment now carries more than just reputational risk—it could amount to a criminal offence.

Malaysia’s Investor Pass: A New Gateway for Global Business Mobility

From 1 April 2025, eligible foreign investors can now apply for Malaysia’s new Investor Pass—a strategic initiative spearheaded by MIDA that streamlines business entry into Malaysia and supports long-term engagement.

Key benefits of the Investor Pass include:

• Six-month stay duration, with an optional six-month extension
• Multiple Entry Visa status, allowing frequent cross-border visits
• Fast-track processing – only five working days

The pass applies to three categories of investors:

1. New Investor: Potential investors who have not had any investment record in Malaysia.
2. Investor in Pipeline: Potential investors who have been identified as interested in making investments in Malaysia, are currently in negotiations with the Malaysian Government, or have applied to MIDA for project approvals.
3. Existing Investor: Investors who have investment records in Malaysia and SSM-registered companies but are not under the employment of the company or any companies in Malaysia. Note: The Existing Investor category is only available for Manufacturing and Selected Services sectors under MIDAs purview. Sectors governed by other agencies will be available in Phase 2.

Applications are submitted via the Xpats Gateway portal, with more details available on the MIDA website.

This pass addresses a long-standing bottleneck for investor mobility and offers companies a smoother pathway to plan site visits, oversee manpower, and engage with stakeholders on the ground.

Read our full breakdown here:
Investor Pass Malaysia 2025: What Business Owners and Workforce Planners Need to Know

Osadi: Your Partner in Workforce Management

At Osadi, we are committed to supporting our clients through these regulatory changes. We’re here to ensure your workforce remains efficient, compliant, and future-ready. Stay tuned for more updates, and don’t hesitate to reach out to our team for personalized assistance as we navigate 2025 together.