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Trade

Trade is a vital component of Malaysia’s economy, encompassing import-export activities, wholesale and retail commerce, e-commerce, and supply chain management. As a strategic trade hub in Southeast Asia, Malaysia enforces regulations and licensing to ensure legal compliance and facilitate international trade growth.

Foreign-owned companies intending to engage in wholesale, retail, or trade activities in Malaysia must obtain the WRT License.

 

What is a WRT License?

The Wholesale, Retail & Trade (WRT) License is a mandatory license issued by the Ministry of Domestic Trade and Cost of Living (KPDN). It allows foreign companies to conduct trade-related business in Malaysia, including wholesale, retail, import-export, and distribution operations.

 

Eligible Business Types for WRT License:

  • Import and export trading companies
  • Wholesalers and retailers (e.g., department stores, e-commerce platforms)
  • Trade agents and distributors
  • Chain restaurants, supermarkets, and franchises

 

Why is the WRT License Important?

  1. 1. Legal Compliance: A WRT License is required for foreign-owned companies to legally operate trade-related businesses in Malaysia.
  2. 2. Market Access: It is a prerequisite for opening retail outlets, launching e-commerce platforms, or engaging in distribution operations.

 

WRT License-Related Policies and Benefits:

  1. 1. Foreign Investment Access: 100% foreign ownership is allowed in most sectors, with streamlined approvals for specific industries.
  2. 2. Trade & Investment Incentives: Eligible companies may apply for Investment Tax Allowance (ITA) and Market Development Grant (MEF) to expand internationally.
  3. 3. Import Duty Benefits: Eligible goods may receive import duty exemptions under Malaysia’s Free Trade Agreements (FTAs).


Industries That Require a WRT License:

  • Import & Export Trade: 
    Companies trading electronics, machinery, food, garments, etc.
  • Wholesale & Retail: 
    Retail outlets, department stores, franchise operations

 

Development Trends in Malaysia's Trade Sector:

The government’s National Trade Blueprint emphasizes:

  • Digital Trade: 
    Advancing e-commerce and cross-border digital trade
  • FTA Expansion: 
    Facilitating trade within ASEAN and under the Regional Comprehensive Economic Partnership (RCEP)
  • Smart Logistics & Supply Chains: 
    Enhancing warehousing and cross-border logistics efficiency

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