Influencer disclosure in Malaysia: what to label, and what LHDN expects

What the Content Code says

The Malaysian Communications and Multimedia Content Code is the industry code administered by the Communications and Multimedia Content Forum (CMCF), registered under the Communications and Multimedia Act 1998. Its 2022 revision brought social media influencers and online marketplaces into the advertising section of the code.

Two points matter most for brands.

• Paid content is advertising. Reviews, endorsements and testimonials made in exchange for payment in cash or “any other reciprocal arrangement” count as advertisements and must be disclosed. Lawyers reading the code note that “reciprocal arrangement” can cover non-cash deals such as free product. Treat gifted posts as needing disclosure too.
• Endorsements have to be genuine. A testimonial must reflect the creator’s own experience. A script that has the creator claim results they haven’t had, or a “real customer review” written by your team, breaks the code.

How to label a paid post

Use the platform tools and say it in words. The tools add a standard label that viewers recognise. The words cover reposts, screenshots and viewers who don’t notice small print.

On the platform

• TikTok: before posting, the creator turns on content disclosure in the post settings and picks the paid partnership option. TikTok then shows a “Paid partnership” label on the video.
• Instagram: the creator adds the paid partnership label and tags your brand account. The post then shows “Paid partnership with” your handle under their name, and you can see its insights.

In the caption and the video

Put the disclosure at the start of the caption, where it isn’t cut off by “more”, in the language of the post. For example:

• “Iklan: kerjasama berbayar dengan @brand.”
• “Ad · Paid partnership with @brand.”
• “广告 · 与 @brand 的付费合作。”

For videos and livestreams, the creator should also say it out loud near the start, for example “This video is sponsored by…”. Tags like #sp, #collab or #thanks buried among other hashtags don’t make the relationship clear. This is the standard we recommend: a viewer should understand the relationship without having to work it out.

Sectors with extra rules

• Medicines and health products. Advertisements for medicines and many health products need approval from the Medicine Advertisements Board under the Medicines (Advertisement and Sale) Act 1956, and the approved material carries a KKLIU number. A creator video counts as an advertisement, so it needs approval like any other.
• Investments and financial products. The Content Forum has reminded creators that investment-related content may fall under Securities Commission Malaysia rules. Don’t brief creators to talk about returns.
• Children. If a campaign features children, plan for consent from parents, limits on working hours and how the content shows them. The 2026 draft below adds safeguards for children who appear regularly in monetised content.

The 2026 influencer guidelines draft

On 2 September 2026 the Content Forum published draft influencer guidelines for public consultation. Feedback closed on 30 September 2026. As reported by The Star, the draft covers:

• AI-generated content, including virtual influencers claiming experiences they couldn’t have had, and disclosure when AI or editing changes how a product or person looks.
• Fake followers, bought comments and fabricated testimonials.
• Health promotions, age-restricted products and financial promotions.
• Livestream selling, contests and giveaways.
• Digitally altered body images, child safety, and cultural and religious sensitivities.

The final text hadn’t been published when we last reviewed this page. If you use AI to make or edit creator content, retouch skin or body shape in beauty and fitness content, or run livestream sales, check the final guidelines before your next campaign. We’ll update this guide when they’re out.

Gifted products and LHDN

LHDN’s guideline on the tax treatment of social media influencer income, dated 14 January 2026, treats influencing as an activity that produces taxable income. Influencers have to declare both cash and non-cash income. Reported examples of non-cash income include sponsored products, free services, discount vouchers and digital rewards that have a monetary value.

That changes what a brand should put in writing:

• Give every product a value. List the retail value of anything you send in the agreement or delivery note. The creator then has a figure to declare, and you have a record.
• Pay against an invoice. Ask creators for an invoice or a signed payment acknowledgement. LHDN expects influencers to keep income and expense records for seven years, and clean paperwork from you makes that easier.
• Don’t present gifting as tax-free. Nano creators often take product-only deals. Some won’t know the rules, so a one-line note in your brief helps them.

The guideline also lets influencers deduct expenses incurred in producing that income under Section 33 of the Income Tax Act 1967, such as internet charges, filming and editing costs. That part is for creators and their tax advisers, not for brands.

A brand checklist

1. The agreement says the post must use the platform’s paid-partnership label.
2. The brief gives the disclosure line in the post’s language, placed at the start of the caption.
3. Videos and livestreams include a spoken disclosure in the first few seconds.
4. No scripted claims of results the creator hasn’t had.
5. Health, beauty-with-claims and financial products are checked against their sector rules before the brief goes out.
6. Every gifted product has a written value. Paid work has an invoice.
7. Your team checks each post when it goes live and asks for a fix the same day if the label is missing.

Sources

1. LHDN, Garis Panduan Layanan Cukai ke atas Pendapatan Pempengaruh Media Sosial, 14 January 2026.
2. RinggitPlus, LHDN Clarifies How Influencer Income Should Be Taxed, 20 January 2026.
3. The Star, New guidelines for influencers to cover AI-generated content, child exploitation and fake claims, 2 September 2026.
4. DNH, Social media influencer marketing: legal risks and a practical compliance guide, accessed 27 October 2026.