Our unique insights into law and business.

Geopolitical developments such as Middle East escalation can significantly impact pricing and supply chains, but the real risk for businesses lies in how their existing Malaysian-law contracts allocate these risks. Many contracts lack effective price adjustment mechanisms, and concepts such as force majeure or commercial hardship often do not provide relief for increased costs. As Malaysian courts generally enforce contracts as agreed, businesses should proactively review and strengthen their contractual frameworks to better manage volatility and avoid disputes.

The EU’s new Packaging and Packaging Waste Regulation (PPWR) reshapes market access for exporters. From August 2026, packaging must meet stricter recyclability, recycled content, reuse and PFAS standards. Malaysian exporters should audit packaging, strengthen documentation, and engage EU buyers early to safeguard continued access to the EU market.

Many foreign companies in Malaysia manage supply chain risk primarily through contracts. In practice, some of the most disruptive risks arise from legal and regulatory factors that sit outside contractual arrangements, including licensing dependencies, labour practices, customs controls and data governance. This article highlights why contracts alone are insufficient, and why companies operating in Malaysia need greater awareness of the legal environment underpinning day-to-day supply chain operations to reduce disruption and build resilience.

Board liability in Malaysia remains personal, local and non-delegable. It cannot be mitigated by HQ approvals or group policies - well-intentioned HQ involvement can unintentionally increase risk, including through shadow director exposure. Malaysian directors are limited in what they can delegate upwards. Sophisticated European groups are adjusting governance structures in 2026 to align HQ oversight with Malaysian legal realities, reducing risk through proper design rather than confrontation.