Licenses related to Distributive Trade and Petroleum or Petroleum Products

Licenses and Permission related to the Distributive Trade

Foreign Participation (with foreign equity at 51% and above) in the Malaysian Distribution Trade Sector which includes wholesalers, retailers, franchisors, direct sellers, suppliers who distribute goods to the domestic market, and commission agents or other representatives including international trading companies need to obtain permission from the Ministry of Domestic Trade and Consumer Affairs to operate.

Unregulated Service Industry

1. Management Consultancy and Management Consulting Services;

2. Cleaning and Cleaning Services;

3. Hair Saloon Center;

4. Market Research;

5. Translation and Interpretation;

6. Laundry Service;

7. Market research;

8. Packaging Services;

9. Photography Services; and

10. Personal and Home Appliances Rental Service

Convenience Store

Convenience stores with foreign involvement are regulated. Owners of convenience stores with foreign interests need to obtain permission from KPDNHEP to operate by applying to the Services Industry Division, KPDNHEP.

Online Business

All online businesses must be registered with the Companies Commission of Malaysia (SSM).

For companies that conduct online business with foreign involvement (i.e. foreign ownership over 51%) and are operating in Malaysia must comply with the following:

Businesses that companies apply are not regulated by the Services Industry Division;

Companies must comply with the Consumer Protection (Electronic Trade Transactions) Regulations 2012; and

Companies must comply with all existing laws and regulations in Malaysia as they are subject to physical business.

Permission under the Petroleum Development Act (PDA) 1974

Application for permission to initiate or continue any business marketing or distribution of petroleum or petroleum products shall be made to the Ministry of Domestic Trade, Co-Operation and Consumers.

KPDNHEP regulates marketing and distribution activities of petroleum materials or petroleum products through four (4) types of PDA Authorization issued based on the following activities:

1. To operate gas stations / skid tank / portable container system / taking over gas stations

2. To carry out bunkering services

3. To operate petroleum transportation services

4. To carry out wholesale marketing of petroleum / LPG based materials

If you would like to know more, please contact Bestar.