Guide to Obtaining A Liquor License in Malaysia

Securing a liquor license in Malaysia can be a challenging process, especially for foreign business owners navigating local laws and regulations. With stringent requirements, varying laws, and extensive documentation, the process requires careful planning and compliance.

In this article, we’ll take a look at the types of liquor licenses, application requirements, regulations, and the process for securing a liquor license in Malaysia.

Types of Liquor Licenses in Malaysia

There are 5 types of liquor licenses that you can apply for depending on your business activities and plans. Each liquor license serves a specific purpose, depending on the establishment that you are looking to set up as detailed below: 

1. Public House License

This license allows businesses to sell all types of alcoholic beverages for consumption on-premises, specifically for bars, clubs, and pubs. The application fees range from RM 1,000 to RM 5,000.

2. Liquor Retail License

As its name suggests, a Retail License allows for the sale of all types of liquor for consumption off-premises. It is specifically for retail premises like liquor stores and convenience stores. Application fees for a retail liquor license range from RM 1,000 to RM 3,000.

3. Wholesale License

A Wholesale License enables the holder to sell alcoholic beverages to other retailers and wholesalers and is mandatory for wholesale distributors. The application fee for this license ranges from RM 1,500 to RM 4,000.

4. Liquor Manufacturing License

For breweries and distilleries specializing in liquor and alcoholic beverages, it is mandatory to have a liquor manufacturing license in Malaysia to start their manufacturing operations.

Please note that the process for applying for a new liquor manufacturing license is highly complex, especially for foreigners. Moreover, obtaining approval from local authorities is currently extremely challenging. Therefore, investors looking to set up liquor manufacturing operations prefer to buy breweries and distilleries rather than starting new operations.

5. Beer House License

A Beer House License is specifically for the sale of beer and occasionally wine for consumption on premises only. No other liquor or alcoholic beverages are permitted with this license. It is created specifically for beer gardens and microbreweries with an application fee of RM 500 to RM 2,000.

Requirements for Liquor License in Malaysia

What Are the Eligibility Criteria for Liquor License Application in Malaysia?

Regardless of whether you are a foreigner or a local, the following criteria must be met to be eligible for a liquor license application in Malaysia:

• Must be at least 21 years of age
• Clean criminal record
• The business must be registered with the Companies Commission of Malaysia (SSM).
• Must have suitable and approved premises for selling alcohol 
• Must provide proof of ownership of the premises through a tenancy agreement or a land title
• Demonstrate sufficient financial resources
• Premises located in a zone that is approved for selling alcohol 
• Premises comply with health and safety regulations
• Muslim shareholders or partners are not allowed 

Required Documents to Apply for Malaysian Liquor License Application

To apply for a Malaysian Liquor License, the following documents must be drafted, applied, and compiled for submission along with the license application:

• Copy of Business Registration
• Certified true copies of the applicant’s MyKad or passport
• Stamped rental agreement or permission letter from the property owner 
• Copy of property owner’s identification card certified by the Commissioner of Oaths (if renting the property)
• Floor plan of the premises with measurements
• Location plan showing the street address of the premises
• Two photographs of the premises with exterior and interior views from different angles
• Approval Letters from local authorities (Police Department, Health Department, etc.)
• Fire Safety Certificate 

Regulations and Compliance for Obtaining A Liquor License in Malaysia

Regulations for Selling Alcohol in Malaysia

As alcohol is a strictly regulated product in Malaysia, there are certain compliances and regulations to keep in mind to avoid getting in trouble with the local authorities or being heavily fined. These regulations include:

• Age Restriction: The sale of alcohol is prohibited to those below 21 years old.
• Prohibition for Muslims: Selling alcohol to Muslims is illegal, in line with Islamic law.
• Prohibited in Certain Locations: Grocers, sundry shops, and convenience stores are prohibited from selling hard liquor. Beer can be sold only during specified hours and must be kept away from other goods. Additionally, shops near schools and places of worship are prohibited from selling alcohol.
• Local Authority Regulations: Certain local municipal councils and districts may impose additional regulations on alcohol sales that vary from one area to another. 
• Advertising Restrictions: Businesses must adhere to advertising guidelines for alcohol such as only featuring individuals above the age of 21 and providing a clear disclaimer that it is strictly for non-Muslims above 21 years old. 
• Operating Hours: Depending on the type of establishment and local regulations, operating hours for selling alcohol may differ as follows:
  • Convenience stores and sundry shops: 7 AM to 9 PM
  • Pubs, bars and restaurants: 10 AM to 12 AM (midnight)
  • Wholesale and retail outlets: 7 AM to 9 PM

Health and Safety Compliances for Alcohol-Selling Premises

Aside from product regulations, your business premises must comply with the local safety and health regulations set by local governing bodies. Failure to comply with the following will result in suspension of business operations, heavy fines, and criminal charges in severe cases:

• Fire Safety Compliance: Obtaining a fire safety certificate from the Malaysian Fire and Rescue Department (BOMBA) to ensure buildings are compliant with fire safety regulations.
• Health and Safety Standards: Obtaining certifications from the Ministry of Health which include:
  • Hazard Analysis Critical Control Point (HACCP): Certification for food safety management systems 
  • Good Manufacturing Practice (GMP): Ensures that products are controlled according to quality standards and are consistent in quality.
  • Occupational Safety and Health Management Systems (OSHMS): Certification for workplace safety.
• Building Safety Regulations: Building must comply with local regulations on building and safety standards, involves inspections to ensure premises meet building codes

How to Apply For A Liquor License in Malaysia

The process to secure a liquor license in Malaysia requires extensive documentation and compliance with local health & safety and alcohol related regulations. Emerhub’s local experts will compile the necessary documentation and liaise with the Royal Malaysian Customs Department (RMCD) to help you secure the license. 

Moreover, we will provide regulatory insights and advise you on the right liquor license as per your planned business activities.

Following is the process to apply for a liquor license in Malaysia:

1. Determine License Type: Decide which liquor license is best based on your planned business needs and future activities. 
2. Documentation Preparation and Submission: Prepare all the necessary documents as outlined and submit them to the RMCD website.
3. Pay Application Fee: Each type of liquor license has a different fee structure that they must pay to the RMCD.
4. Inspection and Review: Officials from the RMCD will inspect your premises to ensure compliance with health and safety regulations.
5. Await Approval: After submission, the authorities usually take around 2 to 6 months to process the application. The exact time depends on the type of license and scale of operations.

Interested in obtaining a liquor license for your business in Malaysia? Fill out the form below and our local representatives will reach out to you.