the Guidelines on Foreign Participation in Distributive Trade Services in Malaysia (“Distributive Trade Guidelines”) issued by the Ministry of Domestic Trade and Costs of Living (“MDTCL”) require foreign business operators engaged in the distributive trade services sector to obtain a wholesale and retail trade approval (a “WRT Approval”) from the MDTCL prior to commencing operations.
The Distributive Trade Guidelines provide that “various other distribution formats”, which include “other types of distributive formats and unregulated sectors, including e-commerce”, fall under the purview of the MDTCL.
The Distributive Trade Guidelines do not, however, have the force of law, and no statutory penalties will be imposed for failure to obtain WRT Approval. That being said, e-commerce businesses without WRT Approval may encounter administrative difficulties with various government authorities if they wish to establish a local presence in Malaysia.
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