Occupational Safety and Health Act 1994: Your Complete Guide

The Occupational Safety and Health Act 1994 (OSHA 1994) is Malaysia’s primary law that ensures every workplace operates safely.

It sets clear duties for employers and employees to prevent accidents, protect health, and promote responsible management of workplace risks.

In Malaysia, a single overlooked safety step can turn a productive day into a costly investigation and a national headlines news on The Star.

Regardless, it’s a mislabelled chemical drum or a loose machine guard, OSHA 1994 doesn’t forgive “we didn’t know mah.”

Today, we break down OSHA 1994, covering its purpose, its 2022 amendments, penalties, and the practical steps every employer should take before you get fined.

What Is the Occupational Safety and Health Act 1994 (OSHA)?

OSHA 1994 establishes Malaysia’s national framework for ensuring health and safety at work.

It replaced fragmented rules with a single legal standard promoting self-regulation, where both employer and employee share responsibility. 

The Act is administered by the Department of Occupational Safety and Health (DOSH) under the Ministry of Human Resources. 

It applies to nearly every sector except the armed forces and domestic service.

Why Does OSHA 1994 Matter for Industrial Workplaces?

Safety law protects both people and profit.

Industrial and manufacturing operations involve machinery, heat, chemicals, and repetitive motion, each a potential hazard.

“In 2023, Malaysia recorded a 13.8% increase in occupational injury cases with a total of 38,950 cases as compared to 34,216 cases recorded in 2022”

Proper OSHA compliance lowers downtime, avoids legal prosecution, and strengthens audit and ESG reporting. 

For businesses dealing with exports, it also demonstrates adherence to international safety standards, something which your vendors and partners would notice.

Read more: How to Optimise Your Business Logistics: Warehouse to Customer

Who Is Covered Under OSHA 1994 (after the 2022 Amendments)?

Every workplace is now within the Act’s reach.

The Occupational Safety and Health (Amendment) Act 2022 came into force progressively from 2024. 

Its purpose was to modernise OSHA 1994 for today’s diverse workforce and expand legal coverage beyond traditional employment relationships.

Expansion Highlights

• Mandatory OSH Coordinator (s.29A) for workplaces with ≥5 employees where a Safety & Health Officer is not required. 
• Compulsory written Safety & Health Policy for workplaces with ≥5 employees. 
• Broader DOSH inspection powers and compound fines for non-compliance.
• Recognition of mental health and psychosocial risk factors within “health and safety.”

Notes: Exclusions remain for domestic employment, the armed forces, and work on board ships effective date 1 June 2024.

What Are the Duties of Employers Under OSHA 1994?

Employers carry the primary legal burden of safe working conditions.

A compliant organisation demonstrates the following core obligations:

• Provide and maintain a safe system of work and safe plant.
• Conduct regular risk assessments and safety inspections.
• Display and implement a written Safety and Health Policy (≥ 5 employees).
• Provide adequate information, instruction and training.
• Establish a Safety and Health Committee (≥ 40 employees).
• Report accidents, dangerous occurrences or occupational diseases to DOSH.

These requirements anchor OSHA’s self-regulatory model: Management must identify hazards and take reasonable steps to eliminate or control them before harm occurs.

What About Employees, Designers and Manufacturers?

Safety is a shared responsibility, and it’s not just the employers who has to shoulder the burden.

Employees must:

• Take reasonable care for their own safety and that of others.
• Cooperate with employers on all safety instructions.
• Use safety equipment properly and report unsafe conditions.

Designers, manufacturers and suppliers must:

• Ensure equipment and materials are safe for intended use.
• Conduct testing and provide accurate usage guidelines.
• Maintain records of product safety and notify users of potential hazards.

This extends the Act beyond factory floors to the supply chain, where machinery or chemical products are produced and distributed.

Penalties for Non-Compliance Under OSHA

Non-compliance carries severe financial and criminal consequences.

“Under the amended OSHA, enforcement officers can issue compound fines and immediate improvement notices without court delay.” — Malaysian Occupational Safety Consultant, 2025

Repeated violations will lead to business suspension or licence withdrawal. Executives and directors can also be held personally liable if negligence occurs under their watch.

Read more: PDPA: What Malaysian SMEs Must Know About Data Protection

How Can Employers Stay Compliant with OSHA 1994?

For Malaysian employers, regular monitoring keeps risks low, avoids DOSH penalties, and protects your workforce from preventable harm.

1. Conduct a Safety Audit

Start with what you can see, touch, and control.

Review your:

• Production floor
• Workflow for potential hazards.
• Employees’ unsafe behaviour
• Poor lighting
• Unlabelled chemicals
• Exposed wiring

All before they lead to an incident.

Tip: Keep photographic evidence, inspection forms, and action logs ready for audits, DOSH officers value documentation as proof of due diligence.

2. Appoint a Safety and Health Coordinator

Even small enterprises are not exempt.

Under the 2022 amendment, employers with fewer than 40 workers must appoint a Safety and Health Coordinator. 

This individual acts as a liaison between the organisation and DOSH, ensuring proper reporting and training records are kept.

• If you employ ≥5 workers and do not require an SHO
• Appoint an OSH Coordinator (s.29A)
• OSH requires the OSH-C course (administrative requirement)

3. Prepare a Written Safety and Health Policy

Your policy is your company’s declaration of responsibility.

For any workplace with five or more employees, OSHA 1994 requires a written policy that outlines:

• The organisation’s safety objectives.
• Responsibilities of management and employees.
• Emergency procedures and communication lines.
• Commitment to training and continuous improvement.

Display the policy prominently in Bahasa Malaysia and English. DOSH often inspects for visibility, not just existence.

4. Provide Regular Training and PPE

Safety is learned, not assumed.

Schedule ongoing training that addresses both general and role-specific hazards, such as forklift operation, chemical handling, and fire safety. 

Make sure all employees know how to use PPE correctly, this is very important.

• Conduct basic fire and first-aid training twice yearly.
• Refresh machinery safety training every 6 to 12 months.
• Keep attendance logs and sign-off sheets as proof of compliance.

“A trained worker is a safer worker, lack of awareness is the most common root cause of industrial injury.” — DOSH Malaysia, 2025

5. Establish a Safety and Health Committee

As mentioned, If your workplace employs 40 or more workers, OSHA requires a Safety and Health Committee. 

Tasks include:

• Meet at least once every 3 months
• Recommending improvements or budget allocations for safety.
• Documenting meeting minutes for internal and DOSH records.

In larger industrial sites, factories, warehouses, and logistics hubs, committees often serve as the first alert system for unsafe trends.

6. Keep Records and Report Incidents Promptly

What isn’t recorded might as well not exist.

DOSH requires all employers to report accidents, dangerous occurrences, and occupational diseases within 7 days. 

• Log near-misses (close calls) as part of preventive monitoring.
• Use a standard incident form (JKKP 6 or equivalent).
• Maintain at least 7 years of safety documentation for inspection.

Reminder: Malaysian DOSH officers can request past records during random inspections or complaint follow-ups, even without prior notice. Having an employee safety handbook helps!

7. Build a Habit of Continuous Improvement

Safety culture is a living system, not a binder on a shelf.

Regularly review safety performance indicators such as absenteeism, near-miss frequency, and audit results. 

Benchmark progress and celebrate improvement milestones with your team. Even having a “it’s been [x] days since an incident” is both funnyand helpful.

Conclusion: Building a Culture of Safety 

Compliance with OSHA 1994 is a mark of responsible leadership.

By meeting statutory duties, organisations safeguard their people, reduce financial risk, and align with Malaysia’s national goal of zero workplace fatalities. Regular audits, transparent reporting and ongoing training turn compliance from a burden into a competitive advantage.

This guide was produced by PRESS, a PR agency in Kuala Lumpur supporting clear and ethical communication on employment and safety issues in Malaysia.

Disclaimer: This guide is for general information only and does not constitute legal advice, laws change, so please consult a qualified Malaysian OSH professional or lawyer for your specific situation.

Sources:

• Department of Occupational Safety and Health Malaysia (DOSH) Annual Report 2024
• Occupational Safety and Health Act 1994 (Act 514)
• Occupational Safety and Health (Amendment) Act 2022
• MahWengKwai & Associates, “Amendments to the OSHA 1994” (2024)
• Employment Hero Malaysia, “Occupational Safety and Health (Amendment) Act Explained” (2023)
• Rajah & Tann Asia, “Key Changes to Malaysia’s Occupational Safety and Health Legislation” (2024)