SSM Extends Compound Reduction of Up to 98.75% Until 31 December 2026
Who qualifies
The Companies Commission of Malaysia (SSM) has extended its compound reduction incentive to 31 December 2026. Companies can now enjoy a reduction of up to 98.75% on compounds under the Companies Act 1965 and Companies Act 2016.
The incentive originally ran from 16 April to 30 September 2026. With the extension, companies have three more months to settle outstanding compounds at a much lower cost.
The Companies Commission of Malaysia (SSM) has extended its compound reduction incentive to 31 December 2026. Companies can now enjoy a reduction of up to 98.75% on compounds under the Companies Act 1965 and Companies Act 2016.
The incentive originally ran from 16 April to 30 September 2026. With the extension, companies have three more months to settle outstanding compounds at a much lower cost.
Why you should act now
Huge savings. Compounds that have built up over years can be settled for a fraction of their original value.
Clean compliance record. Settling compounds helps directors avoid further enforcement action, including court proceedings.
A fresh start. Dormant or non-compliant companies can be put back in order, or closed properly.
Limited time. After 31 December 2026, compounds are expected to return to their normal rates.
What to do
Check your company’s status and compounds with SSM.
Lodge any outstanding documents, such as overdue annual returns and financial statements.
Decide the company’s future: keep it active, apply for strike-off, or wind it up.
Pay the reduced compounds before 31 December 2026.
