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A Children's Court will be set up with the power to sentence young male offenders to caning.
The move follows government concern over a rise in juvenile crime and 'social problems' among young people.
In conservative Malaysia, children who idly gather at shopping centres are considered a problem.
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The Children's Court, for people under 18, will comprise a Sessions Court judge and two advisers.
The court will have jurisdiction to try all offences by children except those punishable by death.
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It will be empowered to order that boys receive up to 10 strokes with a light cane. Girls will be exempt from caning.
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