In Malaysia, worker accommodation has become a key focus for businesses, especially those employing large numbers of foreign workers. Beyond providing a place to stay, companies are now legally responsible for ensuring safe, clean, and compliant housing under the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446).
If your company hires or manages workers in Malaysia, understanding these standards is crucial — not only for compliance but also for protecting your brand reputation and workforce welfare.
What Is Act 446?
Act 446, officially known as the Workers’ Minimum Standards of Housing and Amenities Act 1990, sets out the minimum housing standards every employer must meet when providing accommodation to workers.
Amended in 2020, the law now covers all sectors — including construction, manufacturing, services, plantations, and security.
The goal is clear: to ensure every worker in Malaysia has access to safe, dignified, and hygienic living conditions.
Key Requirements Under Act 446
Here’s what employers must provide under the Act:
• Minimum 3 square meters of living space per worker
• Clean water and electricity supply
• Toilet and bathroom facilities in good condition, segregated by gender
• Proper ventilation and lighting in all living areas
• Fire safety equipment and emergency exits
• First aid kits and access to medical care
• Separate sleeping areas for male and female workers
These are not just recommendations — they’re legal obligations.
Certificate of Accommodation (CoA)
Before housing workers, employers must apply for a Certificate of Accommodation (CoA) from the Department of Labour (JTKSM).
The CoA confirms that your facility meets Act 446 standards.
Operating without a CoA can result in fines up to RM50,000 per offence and possible suspension of business operations.
It’s a compliance step every responsible employer should take seriously.
Types of Worker Accommodation in Malaysia
Depending on industry and site conditions, there are several approved types of accommodation:
• Centralised Labour Quarters (CLQ): Purpose-built dormitories with shared facilities, designed to meet full compliance.
• Converted Buildings: Shop lots or existing structures adapted for worker housing, subject to local authority approval.
• Cabin-Based Housing: Portable and modular units, ideal for short-term or construction projects.
Each option must meet Act 446 safety, hygiene, and space standards
Why Compliance Matters
Compliance is more than a legal checkbox — it’s an ethical commitment.
Companies that invest in proper worker housing benefit from:
✅ Better worker morale and retention
✅ Stronger corporate reputation
✅ Lower health and safety risks
✅ Compliance with international labour standards
Ultimately, it’s about doing what’s right — ensuring that every worker lives with dignity and safety.
Moving Forward
Malaysia is moving toward stricter enforcement of Centralised Labour Quarters (CLQ) and improved oversight under Act 446.
Employers and accommodation providers are encouraged to upgrade facilities, obtain their CoA, and work with licensed housing partners to maintain long-term compliance.
By doing so, we can create a safer and more sustainable work environment for all.
Final Thoughts
Understanding worker accommodation standards in Malaysia is not just about following the law — it’s about setting a higher standard for worker welfare.
Whether you manage 10 or 1,000 employees, compliance with Act 446 Malaysia reflects your company’s values and commitment to ethical business practices.
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