The World: Kuala Lumpur - Malaysia plans to tweak competition laws

The Malaysian government is amending its rules designed to clamp down on foreign-made commercials in order to make them appear less Draconian.

A new version of the so-called "Made in Malaysia" regulations will be introduced later this year. But they will be "positive rather than punitive", according to Vincent Lee, the president of the Malaysian Association of Advertising Agencies.

"There will be a focus on incentives to shoot in Malaysia - such as tax relief - rather than penalties for ads shot abroad," he said. "It's a push-and-pull strategy."

However, existing rules stipulating that 80 per cent of total production costs should be spent in Malaysia are expected to be tightened.

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