Datuk Vincent Lee, president of the Malaysian 4As, said the discussions with Health Minister, Chua Soi Lek, were progressing "step by step" and proposals will be presented to the cabinet on Wednesday.
Although talks are still ongoing, among the suggested proposals is a cap on ads targeting children under 10 years old, as exists in the UK.
A limit on programming content portraying children eating fast food is also being debated. Lee reasserted his conviction that an outright ban on advertising fast food is highly unlikely.
Key companies affected by a ban in Malaysia would be KFC, Pizza Hut and McDonald’s, which spend RM200 million (US$60 million) on advertising combined.