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(1) |
Warehousing services Warehousing operators may apply for one of the following three (3) licence categories, depending on their operational needs: (a) Ordinary Warehouse (b) Public Bonded Warehouse (c) Private Bonded Warehouse
There are no equity ownership requirements imposed by the Royal Malaysian Customs Department for Ordinary Warehouse and Private Bonded Warehouse licences. However, companies applying for a Public Bonded Warehouse licence are required to have a minimum of 30% Bumiputera equity ownership.
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(2) |
Transportation services Companies providing transportation services using commercial vehicles must obtain the appropriate carrier licence, as follows: (a) Carrier License A Issued to companies providing transportation services to third parties. (b) Carrier License C Issued to companies using vehicles for their own operations.
Licences are issued by the Land Public Transport Commission (SPAD) for operators in Peninsular Malaysia and the Commercial Vehicles Licensing Board (CVLB) for operators in Sabah and Sarawak, pursuant to the Commercial Vehicles Licensing Board Act 1987.
The applicable equity conditions are as follows: (a) Carrier License A application:
The company must maintain a minimum of 51% Malaysian equity ownership, including at least 30% Bumiputera equity. Foreign equity ownership of up to 49% is allowed, subject to approval by the Licensing Committee. For courier service providers, up to 100% foreign ownership is allowed.
(b) Carrier License C application: Up to 100% foreign equity ownership is permitted.
Different licenses are required for the transportation of container bulk, bulk liquid and general haulage, schedules wastes, radioactive and nuclear materials.
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(3) |
Freight forwarding/Customs Clearance and Shipping Services
Companies intending to operate as Freight Forwarding Agents, Customs Agents, or Shipping Agents must obtain the relevant licences from the Royal Malaysian Customs Department, in accordance with Section 90 of the Customs Act 1967. Minimum paid-up capital of RM100,000 is required for companies registered under CA 2016.
To qualify for a Freight Forwarding Agent / Customs Agent Licence, a company is required to first obtain International Integrated Logistics Services (IILS) status from Malaysian Investment Development Authority prior to applying for the licence from the Customs Department.
The equity requirements are as follows: (a) Freight Forwarding Agent/Customs Agent A company granted IILS status is permitted to have 100% foreign ownership. (b) Shipping Agent Up to 100% foreign equity ownership is allowed. |
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(4) |
Integrated Logistics Services (ILS)
ILS typically include freight forwarding, warehousing, transportation, and value-added services such as distribution, procurement, and supply chain management, provided in an integrated framework.
Companies undertaking ILS activities must obtain the relevant operating licences from the applicable licensing authorities.
Eligible ILS companies may apply for one of the following incentives: (a) Pioneer Status Provides a 70% exemption on statutory income for a period of five years. (b) Investment Tax Allowance (ITA) Provides a 60% allowance on qualifying capital expenditure incurred within five years. To be eligible for these tax incentives, an ILS company must have at least 60% Malaysian equity ownership. |
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(5) |
International Integrated Logistics Services (IILS)
A company offering integrated, end-to-end (door-to-door) logistics solutions across the logistics supply chain as a single entity at a regional or global level may apply for IILS status, subject to approval by the Royal Malaysian Customs Department. However, obtaining IILS status does not automatically qualify the company for tax incentives under the Promotion of Investments Act 1986.
An IILS company that is approved is allowed to have 100 percent foreign equity ownership.
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(6) |
Cold Chain Facilities
Cold chain facilities companies provide services such as cold room, refrigerated truck, and related services. To operate in this sub-sector that involving warehousing and transportation services, investors must incorporate a company under the CA 2016 and obtain the relevant operating licences, including a Public or Private Bonded Warehouse licence and a Class A commercial vehicle and haulage licence.
Companies offering cold chain facilities for local agricultural produce may qualify for tax incentives in the form of Pioneer Status or ITA. Eligible companies must act as independent service providers and derive at least 60% of their revenue from cold room facilities, refrigerated transportation, and related services.
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Disclaimer All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage. |
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