RM1 Million Fine For Companies Repeatedly Violating SOPs In New Ruling

An amendment will raise the maximum compound rate from RM1,000 for companies that commit offences.

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Companies and government agencies that violate the standard operating procedures (SOPs) of COVID-19 control can be fined up to RM1 million.

The ruling will take effect after amendments to the Prevention and Control of Infectious Diseases Act 1988 (Act 342).

Health Minister Khairy Jamaluddin said the increased fine – up from RM1,000 – is among the amendment to Act 342, which would be tabled in the Dewan Rakyat this coming Thursday.

He said the maximum fine could be imposed on large companies that are repeat offenders and had triggered new COVID-19 cluster several times, as is the case right now.

It is not necessary to pay RM1 million after Act 342 is amended and gazetted. It;s just that the maximum compound that can be imposed for companies, government agencies and others is RM1 million.
Health Minister Khairy Jamaluddin on amendments to Act 342

Guidelines On The Method Of Setting Fines

Khairy, who spoke in a talk titled ‘Menilai Ketegasan KKM’ on TV1, assured that there will be guidelines to ensure that the RM1 million fine is not issued recklessly.

Khairy added that the value of RM1 million, compared to RM50,000 as in the Emergency Ordinance, is more for recurring offences among large companies.

For example, large companies in the manufacturing sector that trigger clusters, while making annual profits of billions of ringgit, will be issued the maximum fine.

“If the compound is RM50,000, that’s nothing for them … ‘gaping teeth’ and can’t prevent or change their behavior,” he said on the Special Narrative Talk program with Sayed Munawar Sayed Mustar as host, which was broadcast live on RTM1, tonight.
Health Minister Khairy Jamaluddin on amendments to Act 342

At the same time, Khairy explained that the compound rate for individuals remained as stipulated in the Emergency Ordinance, which is RM10,000, with strict guidelines.

The guidelines are to ensure justice for those who could not afford it, apart from imposing appropriate values on those who made huge profits and yet ignored the SOP.

We will have very clear guidelines. Maybe RM1,000 for a minor offense, and repeat offense will pay a higher fine.
Health Minister Khairy Jamaluddin on fine guidelines

He said these guidelines are important as hawkers, burger sellers had been unfairly fined RM10,000 under the Emergency Ordinance.

Additional Improvements

Khairy added that several other matters will also be amended in Act 342.

These include provisions for the segregation of quarantine at home and the use of devices to individuals quarantined in the act.

Another amendment is to include the delegation of ministerial powers to officers. For example, not only MOH enforcement officers, but also local authority enforcement officers can enforce Act 342.
Health Minister Khairy Jamaluddin on fine guidelines on other amendments to Act 342

The details of the amendment to Act 342 will be communicated to all Members of Parliament tomorrow, to ensure that they understand and support the amendment when it is tabled in the Dewan Rakyat.