A Quick Guide To Retail & Wholesale Rice Licenses In Malaysia
Due to its importance as a staple food, businesses in Malaysia require a license from the Malaysian Ministry of Agriculture & Food Security (KPKM) to legally engage in retail and wholesale trade of rice.
As far as licenses go, this one is quite straightforward, and for businesses in West Malaysia, our guide explains key details you need to handle it yourselves, including:
- requirements & fees
- supporting documents
- application steps
- validity period & renewals
Let’s begin.
Retail rice license
This allows the retailing of rice with a minimum stock of 10,000kg and up.
Requirements
- registered entity under SSM / SKM / Lembaga Pertubuhan Peladang
- applicant is a Malaysian citizen at least 18 years of age / Malaysian-owned company
- has a suitable premise (lower floor in a non-flood prone area)
- no existing retail rice license at the same address
Fee
The fee is RM20 / year for the first 10,000kg, and RM10 / year for every next 10,000kg or part thereof.
Supporting documents
All applications require a valid PBT license for the relevant activity in the premises stated in the application, and additional supporting documents depend on the type of business entity.
SSM Enterprise (Sole Proprietorship / Partnership)
- copy of SSM profile showing rice as the business activity and the address of the business premises for which the license is being applied.
Sdn Bhd / Bhd
- copy of Memorandum and Articles of Association (MAA)
- copy of the SSM profile showing rice as the business activity and the address of the business premises for which the license is being applied
Cooperative / farmers’ organisation
- copy of Certificate of Registration
- copy of by-laws
- copy of meeting minutes extract showing Board of Directors / Committee Members approve the application for a retail rice license including the approved capital allocation
Wholesale rice license
This allows the wholesaling of rice with a minimum stock of 100 MT and up, and requires the following:
Requirements
- registered entity under SSM / SKM / Lembaga Pertubuhan Peladang
- applicant is a Malaysian citizen at least 21 years of age / Malaysian-owned company
- paid up capital of RM100,000 for Bumiputera entities / RM150,000 for non-Bumiputeras (for companies)
- working capital of RM100,000 for Bumiputera entities / RM150,000 for non-Bumiputeras
- suitable storage area (lower floor in a non-flood prone area with exits / entrances that do not block traffic)
- no existing rice license at the same address
Fee
The fee is RM200 / year for the first 100 MT, and RM10 / year for every next 100 MT or part thereof.
Supporting documents
All applications require a valid PBT license for the relevant activity in the premises stated in the application, and additional supporting documents depend on the type of business entity.
SSM Enterprise (Sole Proprietorship / Partnership)
- copy of SSM profile showing rice wholesale as the business activity and the address of the business premises for which the license is being applied
- copy of latest three months’ bank statements under the name of the applicant with a balance of not less than RM100,000 for Bumiputera applicants / RM150,000 for non-Bumiputera applicants
- copy of warehouse rental / S&P agreement / letter of permission to use the warehouse / land title
Sdn Bhd / Bhd
- copy of Memorandum and Articles of Association (MAA)
- copy of SSM profile showing rice wholesale as the business activity and the address of the business premises for which the license is being applied
Cooperative / farmers’ organisation
- copy of Certificate of Registration
- copy of by-laws
- copy of meeting minutes extract showing Board of Directors / Committee Members approve the application for a wholesale rice license including the approved capital allocation
- copy of latest three months’ bank statements under the name of the applicant with a balance of not less than RM100,000 for Bumiputera applicants / RM150,000 for non-Bumiputera applicants
- copy of warehouse rental / S&P agreement / letter of permission to use the warehouse / land title
Application steps
For organisations that meet the above requirements and have all the supporting documents ready, applications are made online through KPKM’s Kawalselia Padi & Beras portal.
First time applicants must register an account after which they can proceed with submitting the application.
Validity period & renewal
Both retail and wholesale rice licenses are generally valid for one year per issuance, and renewals should be done at least 30 days before the expiry date. Renewals can also be done online through the aforementioned KPMP portal.
That’s all from us, and we wish you all the best with your application 😊
Let MISHU handle your KPMP license application
If you’d like help obtaining a rice retail or wholesale license for your supermarket, grocery store, or wholesale facility, our team is here to help prepare documents, liaise with KPMP, and handle license collection and delivery. Speak to us today!