10 FAQs On Alcohol Licenses In Malaysia

Though Malaysia is a majority Muslim country, Non-Muslims are pretty much free to live life on their own terms, including leisure activities such as alcohol consumption.

Where there’s demand there’s supply, and In this post, we address ten top questions about obtaining alcohol licenses in Malaysia.

Let’s begin!

1. What types of alcohol licenses are there in Malaysia?

The three alcohol licenses most relevant to SME operators are:

1. Retail::For retailers selling alcohol to end consumers for off-premise consumption.
2. Wholesale: For wholesalers selling alcohol to retailers and other wholesalers.
3. Public House: For F&B outlets serving alcohol for on-premise consumption

All three are issued by the Local Authorities of the district your business address is in.

The licenses are business activity-specific – for example, a bar that both serves alcohol and sells whole bottles for customers to bring home must obtain Public House and Retail licenses. 

Different Local Authorities have different fees and requirements, so be sure to confirm the details with them – or ask us to do it for you!

2. What are requirements for alcohol licenses?

Again, specific requirements vary between districts, but you’ll generally need to satisfy four requirements to qualify for an Alcohol License.

1. Have a registered business entity

There are no restrictions on type of business entity, so business owners can choose between the following::

• Sole Proprietorship
• Conventional Partnership
• Limited Liability Partnership, or
• Sendirian Berhad

If you’re unsure which entity best aligns with your goals, our side by side comparison of business structures for SMEs might come in handy 🙂

2. Have a suitable premise

Both retail and wholesale premises selling alcohol cannot be located in the following areas:

• near religious institutions, schools, residential areas, and community centres.
• business premises under multifamily residential buildings like condominiums
• known crime hotspots

Additionally, alcohol wholesale premises must operate from industrial areas designated by the Local Authority and Excise Act 1976

3. Obtain approval documents from local agencies

Your premise must receive approval letter from you district:

• Police Department
• Customs Department
• Health Department, and
• Local Council

Here are two things you should know:

1. It is at their discretion to physically inspect the premise and interview business owner(s) before giving approval.
2. Each agency has a set interval when they process all new applications, usually once every three to four months.

And yes, you can and should apply to each agency simultaneously for the quickest results!

4. No Muslim shareholders / owners / partners

This one might seem obvious, but Muslims in Malaysia are prohibited from owning businesses that serve or sell alcohol.

Additionally, all shareholders, partners, and owners must be at least 21 years old.

3. Do I have to go for a police interview?

Yes, most Local Councils require you to pass an interview by the local police and screening by the Customs Department.

In addition to questioning you, they will also conduct a background check to ensure you have no criminal record, and unfortunately, without police approval, applicants cannot obtain an alcohol license.

4. How much does an alcohol license cost?

There is no definitive answer as rates vary significantly between Local Authorities!

For example, a Retail Alcohol license in Selangor currently costs RM840 while the same license in Batu Gajah costs RM180!

There’s also no guarantee online sources are up-to-date, so the best way to find out is to contact your Local Authority.

Generally, be ready to pay up to RM1,000 for each license, valid for one year, after which they must be renewed for the same price.

5. Can you apply for an alcohol license online?

We wish we could give you a solid answer, but this also varies by Local Authority! 

Some like Dewan Bandaraya Kuala Lumpur support online applications via their e-LESEN portal.

Others, especially in more rural areas, will need physical submission.

6. Where do I get a liquor license application?

Visit your Local Authority’s official web portal and either do a search or call their customer service hotline. 

7. How do I apply for a DBKL liquor license?

We’re singling out DBKL as it’s one of the main Local Authorities the MISHU team deals with. We’re also simplifying it, but the process has four main steps:

1. Register a business entity
2. Find a premise that satisfies DBKL’s requirements
3. Obtain approval letters from your local Police, Health, Customs, and Council.
4. Submit your Liquor License application through DBKL’s licensing portal, including the approval letters and your business details as supporting documents

Expect the approval process from the various agencies to take several months and the license fee to be around RM1,000 per license.

8. Is a license needed to sell beer in Malaysia?

Probably not.

Every Local Authority the MISHU team has dealt with only requires alcohol licenses for sale of beverages with 20% or higher alcohol content. Unless you’re selling vodka disguised as beer you don’t need a specific license to sell beer in the following areas:

• Kuala Lumpur
• All of Selangor
• Johor Bahru
• Bandar Iskandar Puteri
• Melaka
• Ipoh

Of course, we say probably because each Local Authority sets their own rules, so yours may in fact require an alcohol license to sell beer – best thing to do is consult them,

9. Do I need alcohol licenses for a restaurant?

Yes if you intend to sell or serve alcohol:

• If you only serve alcohol for on premise consumption, you need a public house license.
• If you plan to sell bottles or cans for customers to take away, you need a retail alcohol license.
• If you plan to do both, you’ll need both licenses!

While each license incurs a separate fee, you can usually apply for a public house and retail alcohol license from your Local Authority simultaneously.

On a related note, if you intend to advertise that you serve or sell alcohol, note that some Local Councils have specific requirements for signboards advertising alcohol, and some ban them altogether.

10. How do I get a bar license in Malaysia?

These steps apply regardless of where you want to set up your bar: 

1. Prepare documentation for the application (undergo inspections / interviews).
2. Advertise your business in the newspaper 
3. Submit the application to your Local Authorities.
4. If everything is in order, you will get your license, valid for one year.

Note: If there is any objection from the public, you will not be issued a license, so pick a suitable location!

Also, a bar needs other licenses too – see our guide on licenses for F&B outlets in Malaysia!

Let MISHU handle your alcohol license application

Need help with dealing with Local Authorities and compiling documentation to apply for your alcohol license? Our team would love to help – get in touch today!