On 30 July 2025, the Countervailing and Anti-Dumping Duties (Amendment) Bill 2025 (“the Bill”) was tabled for its first reading in the Dewan Rakyat (House of Representatives) of the Malaysian Parliament.¹
 
The Countervailing and Anti-Dumping Duties Act 1993 (“the Act”) serves as a cornerstone of Malaysia’s trade defence regime. Enacted to protect domestic industries from unfair trade practices, the Act provides the legal framework for the imposition of countervailing or anti-dumping duties on imported goods that are either sold below fair market value or benefit from foreign government subsidies – practices which may cause material injury to Malaysian industries. The Act aims to ensure fair competition and to safeguard the economic interests of local manufacturers.
 
The Bill seeks to modernise and strengthen this framework by introducing key amendments aligned with international trade practices and Malaysia’s obligations under the World Trade Organisation (“WTO”) agreements.
 
This article highlights the key amendments that will be introduced under the Bill on the premise that the Bill will be passed by the Malaysian Parliament without amendment.

1.

Introduction of Anti-Circumvention Measures   One of the most significant amendments under the Bill is the introduction of express anti-circumvention provisions – an area previously unregulated under the Act. These measures are designed to close loopholes used by exporters or producers to bypass the effects of countervailing or anti-dumping duties, such as rerouting goods through third countries.   A new definition of “circumvention” is proposed to section 2 of the Act, broadly defined as “an action of an exporter or a producer of the subject merchandise to avoid or undermine the countervailing or anti-dumping duties imposed by the Government” to capture a wide range of evasive conduct.   To operationalise this framework, the Bill introduces new sections 37A and 37B into the Act:  the proposed new section 37A provides that the Malaysian Government (“Government”) may conduct an anti-circumvention investigation upon the petition by an interested person or on the Government’s own initiative based on information received. The provision also sets out the procedures to be adopted by the Government to determine whether to initiate an anti-circumvention investigation; and  the proposed new section 37B prescribes the procedures and scope of determinations in relation to an anti-circumvention investigation, incorporating WTO-consistent procedural safeguards such as the publication of a notice of initiation, disclosure of the essential facts under consideration and opportunities for interested parties to provide comments before a final determination is made.  Where circumvention is found to exist, the proposed new subsection 37B(5) empowers the Minister of Investment, Trade and Industry to extend the existing countervailing or anti-dumping duties, or to impose new duties on imports from the exporters or producers who are found to be circumventing.

2.

Separation of Administrative and Expiry Reviews   Sections 13 and 28 of the Act currently govern the administrative review of countervailing and anti-dumping duties respectively. The Bill introduces significant reforms by structurally distinguishing administrative reviews from expiry reviews, which were previously regulated under the same provisions.   To effect this separation, the Bill repeals paragraphs 13(1)(d) and 28(1)(e) of the Act, which had empowered the Government to conduct administrative reviews when information suggested that duties due for termination should be maintained. These provisions are now replaced with dedicated expiry review mechanisms under the proposed new sections 13C and 28C:  the proposed new section 13C sets out the circumstances under which the Government is required to conduct an expiry review of countervailing duties, including the evidentiary thresholds and the preliminary assessment process; and  the proposed new section 28C introduces corresponding provisions for expiry reviews of anti-dumping duties.

3.

Consolidated Review Procedures   The Bill repeals several existing subsections – namely subsections 13(2) to 13(8) in relation to countervailing duties, as well as subsections 28(2) to 28(8) in relation to anti-dumping duties – which previously governed administrative review procedures but are now rendered obsolete by the introduction of more detailed provisions.   In their place, the Bill introduces a unified procedural framework for all types of review – administrative, refund, expedited and expiry – through the proposed new sections 13D and 28D:  the proposed new section 13D sets out the procedures and scope of determinations applicable to all reviews of countervailing duty initiated under the Act; and  the proposed new section 28D provides corresponding procedures and determinations for all reviews of anti-dumping duties under the Act.

4.

Suspension of Investigations and Duration of Duties   Subsections 12(1) and 27(1) of the Act currently provide that countervailing and anti-dumping duty investigations may be suspended at any time if the Government accepts undertakings or price undertakings respectively.   The Bill refines these provisions to provide greater clarity and alignment with WTO practices:  subsection 12(1) of the Act is amended to expressly permit the suspension of a countervailing duty investigation where the Government accepts an undertaking from the government of an exporting WTO member to eliminate or limit the subsidy, or an undertaking from any exporter to revise its prices; and  subsection 27(1) of the Act is similarly amended to allow the suspension of an anti-dumping duty investigation where the Government accepts an undertaking from an exporter to revise its prices or to cease exports into Malaysia at dumped prices, provided the Government is satisfied that the injurious effects of dumping have been eliminated.  In addition, the Bill amends sections 12A and 27A of the Act to clarify that countervailing and anti-dumping duties may remain in force for a maximum of five years, either from the date of imposition or from the date of conclusion of the most recent expiry review. This amendment formalises the WTO-mandated “sunset” principle and ensures that duties are not imposed indefinitely.

5.

Other Key Amendments   In addition to the above, the Bill introduces several other technical or procedural amendments:  Provisional Measures: Subsections 9(1) and 24(1) of the Act presently allow the Government to apply provisional measures after a preliminary determination of injury to prevent further injury during the investigation process. The Bill amends these sections by replacing the phrase “during the period of investigation” with “during the investigation”, aligning the Act with relevant articles of the WTO agreements;  Administrative Review Petitions: Proposed amendments to subsections 13(1) and 28(1) of the Act require parties seeking an administrative review in relation to countervailing or anti-dumping duties to submit a formal petition to the Government. New subsections (9) to (13) are introduced into both sections 13 and 28 of the Act to regulate the threshold evidential requirements and the preliminary assessment process;  Construction of Export Price: Subsection 17(2) is amended to allow the Government greater discretion in constructing the export price where the actual export price is unavailable or unreliable. Under the revised provision, the Government may construct the price on any reasonable basis, not just those provided by exporters or producers; and  Overlapping Reviews and Judicial Reviews: The Bill amends section 34A and introduces a new subsection 34A(3A) to regulate overlapping review and judicial review processes. Specifically, where a party has initiated judicial review under subsection 34A(1), that party is now precluded from filing any request for any form of review of the countervailing or anti-dumping duties while the judicial review is pending.

​​Comments

 
The proposed amendments to the Act represent a substantial and long-overdue reform of Malaysia’s trade remedies framework. With the last revision dating back to 1999, these changes are necessary to ensure the legal regime remains responsive to modern trade realities. By introducing clear anti-circumvention rules, the Bill is expected to enhance the efficiency and effectiveness of Malaysia’s trade defence mechanisms in addressing the evasion of duties.
 
While the Bill remains subject to debate in Parliament and may be amended during the legislative process, it nonetheless marks a major step forward in modernising Malaysia’s trade policy toolkit.
 
Article by Lim Koon Huan (Partner), Manshan Singh (Partner), Ho Pui Yan (Associate) and Lim Shu Yi (Associate) of our Anti-Dumping and Trade Remedies Practice.
 
 

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