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On 5 March 2025, the European Commission presented an industrial action plan to drive innovation, sustainability and competitiveness in the automotive sector. The plan seeks to offer a comprehensive strategy aimed at maintaining the global competitiveness of the European automotive industry while navigating the transition to clean mobility and digital integration. Simultaneously, it seeks to address challenges such as access to raw materials, uncompetitive trade practices and rising production costs.

The Department of Industrial Works recently introduced the Draft Industrial Waste Management Act (DIWMA), which remained open for public hearing until 1 April 2025. Similar to some other draft waste laws, namely the Draft Sustainable Packaging Management Act and the Draft Waste Electrical and Electronic Equipment Management Act, the DIWMA adopts the Extended Producer Responsibility principle, obligating operators of industrial establishments to be responsible for the industrial waste they generate until it is fully treated or disposed of.

The Carbon Capture, Utilization and Storage Bill 2025 has been passed by the Dewan Negara and is, at the time of issuance of this client alert, pending Royal Assent. Once the Royal Assent has been provided, the Carbon Capture, Utilization and Storage Act 2025 will be enacted (CCUSA). The CCUSA establishes a robust legal and regulatory framework for CCUS cycle from carbon dioxide capture, transportation, utilization, and storage.

In February 2025, the EU Commission introduced the Omnibus Simplification Package to streamline sustainability regulations. This package includes two proposed Directives: the “Stop-the-clock” Directive, which proposes delaying the CSRD and CSDDD compliance timelines, and a second Directive that suggests substantive changes to both the CSRD and CSDDD. The “Stop-the-clock” Directive is now close to being approved, giving businesses more certainty on the timeline for compliance.

On 21 February 2025, the Ministry of Labor released the revised “Guidelines for Preventing Illegal Harm While Performing Duties (4th Edition).” The revised guidelines emphasize the establishment of an investigation team within three days for suspected illegal harm incidents, with specific team compositions based on organization size. The scope has been expanded to include personnel supervised by workplace managers, applying the same guidelines as for employees. The 4th edition also specifies potential workplace harm behaviors, including violence, bullying, sexual harassment, and discrimination, with examples of workplace bullying such as unrealistic work goals and excessive or trivial task assignments.

The Malaysian Personal Data Protection Department recently published three public consultation papers to gather feedback on proposed guidelines on (i) data protection impact assessments, (ii) data protection by design and (iii) automated decision-making and profiling. The guidelines are part of a set of seven guidelines that are being (and have been) developed to complement the Personal Data Protection Act 2010 (PDPA), as announced by Digital Minister Gobind Singh Deo in January last year.

With the Climate Protection Contracts (KlimaschutzvertrĂ€ge) program (also known as Carbon Contracts for Difference program), Germany has been relying on an innovative instrument to ensure (climate-neutral) competitiveness since 2023. Following the largely positive reception of the first bidding round and the European Commission’s approval under state aid law on 24 March 2025, the course is now set for the implementation of the second bidding round. According to the latest reports, the new federal government also seems to want to give the final green light for the continuation of the program.

On 26 February 2025, the European Commission adopted the Omnibus Simplification Package, aimed at reducing regulatory burdens related to sustainability reporting for European companies. This initiative amends several key directives, including the Corporate Sustainability Reporting Directive, the Corporate Sustainability Due Diligence Directive and the EU Taxonomy Regulation.
These proposals aim to streamline reporting obligations, enhance competitiveness and adjust the scope and timelines of existing regulations.