What is the WRT licence and do foreign-owned companies need it?
WRT means wholesale and retail trade. A foreign-owned company doing distributive trade generally needs approval from the Ministry of Domestic Trade and Cost of Living (KPDN) under its foreign participation guidelines. Reported capital requirements, such as RM1 million, are described inconsistently, so confirm the current rule with KPDN.
Distributive trade covers wholesale, retail, import and export, and franchising. KPDN administers guidelines on foreign participation in the distributive trade sector.
What sources agree on
- Foreign-owned companies (commonly meaning more than 50% foreign equity) in these activities usually need KPDN approval or licence before trading.
- Larger formats like hypermarkets and superstores face extra conditions.
What sources disagree on
- The Expatriate Services Division (ESD) registration table lists RM1,000,000 paid-up capital for foreign-owned companies running a wholesale, retail and trade licence, and many consultancy guides repeat RM1 million.
- In March 2026 the Domestic Trade Minister said no specific provision under existing laws sets a RM1 million paid-up capital threshold for foreign entities, that mandatory 51% local ownership in sensitive sectors is not provided for, and that KPDN is improving its Foreign Participation Guidelines (GPPA).
- The ESD figure belongs to immigration registration, a separate process from KPDN's approval. Until KPDN publishes revised guidelines, plan for both views.
What to do
- Confirm directly with KPDN whether your product line and ownership structure need approval.
- Do not start selling until approval is in hand.
- Keep the answer in writing for your records.
A locally owned Sdn Bhd selling goods does not need this foreign-participation approval, but may need other trade licences.
Legal basis
- KPDN Foreign Participation Guidelines in the Distributive Trade Sector (GPPA)
Sources
Applies to 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- Does a Malaysian Sdn Bhd need a resident director?Yes. A private company needs at least one director who ordinarily resides in Malaysia, meaning their principal place of residence is in Malaysia. Citizenship is not required for directors, but residence is. Alternate or substitute directors do not count towards that minimum.
- Can foreigners own 100% of a Sdn Bhd in Malaysia?Yes, in most sectors. Malaysia generally allows 100% foreign shareholding in a Sdn Bhd, with no minimum local shareholder under the Companies Act 2016. Some sectors have foreign equity limits or licence conditions, and the company still needs a resident director and a licensed Malaysian company secretary.
- Which business sectors restrict foreign ownership in Malaysia?There is no single list in the Companies Act. Restrictions come from sector regulators: for example financial services, telecommunications, energy, media, some retail formats, and certain licensed professions. Limits can be a foreign equity cap, a local partner or a licence condition. Check the regulator for your activity before incorporating.
- Does a foreign owner need a Malaysian resident director for a Sdn Bhd?Yes. At least one director must ordinarily live in Malaysia. A foreign owner living abroad therefore needs a resident director, who may be a Malaysian, permanent resident or foreigner holding a long-term pass such as an Employment Pass. A nominee takes on real legal duties, so choose carefully.
- Can a foreign-owned Sdn Bhd hire expatriates and what company capital is expected?Foreign staff need immigration approval, mainly an Employment Pass, through the Expatriate Services Division (ESD) and MYXpats. From 1 June 2026 the minimum basic monthly salary is RM20,000 for Category I, RM10,000 to RM19,999 for Category II and RM5,000 to RM9,999 for Category III. ESD also lists paid-up capital of RM250,000 to RM500,000, depending on foreign ownership.