Is freelancing while employed legal in Malaysia? What I found out
by Khalid Musa·May 23, 2026
I asked a lawyer friend and did my own research. Here's the practical answer.
The general rule: There is no Malaysian law that prohibits employees from freelancing outside of work hours. Freelancing while employed is generally legal.
The important exceptions:
1. Your employment contract. Many contracts include a "non-compete" or "exclusive service" clause. Read yours. If it says you cannot engage in outside work without written permission, freelancing without approval is a breach of contract — not illegal, but grounds for termination.
2. Conflict of interest. Freelancing for a direct competitor of your employer is problematic regardless of what your contract says. Even if it's technically legal, it could be grounds for dismissal.
3. Using employer resources. Using company time, equipment, or confidential information for freelance work is clearly wrong and potentially an actionable breach.
Best practice: Read your contract. If there's any ambiguity, check with HR or get written permission. Work on your own time with your own tools on projects that don't compete with your employer.