Quotation Template (Malaysia)

A Quotation Template in Malaysia records the goods or services supplied and the amount payable for them.

Malaysian businesses registered with the Companies Commission of Malaysia (SSM) under the Companies Act 2016 routinely issue Quotations as part of the commercial procurement process, particularly in the construction, manufacturing, professional services, and technology sectors. A Quotation differs from a Proforma Invoice in that a Proforma Invoice is issued after agreement is reached and functions as a preliminary invoice for customs or financing purposes, whereas a Quotation is a pre-contractual offer that invites acceptance.

Under the Sales Tax Act 2018, a supplier registered with the Royal Malaysian Customs Department (JKDM) with annual taxable turnover exceeding RM 500,000 must include Sales Tax at 10% (or 5% for prescribed goods) in the Quotation. Service providers registered under the Service Tax Act 2018 must include Service Tax at 8% (increased from 6% on 1 March 2024 under the Service Tax (Amendment) Act 2022) on prescribed taxable services. Failure to separately state SST in the Quotation may create disputes over the contractual price if the customer accepts the quoted amount believing it to be SST-inclusive.

A Quotation in Malaysia must be distinguished from an Estimate or a Tender. An Estimate is an approximate calculation of likely costs without commitment, whereas a Quotation is a firm offer with a fixed price. A Tender is a formal offer submitted in response to a Request for Proposal (RFP) or Request for Quotation (RFQ) under a competitive procurement process — governed by Treasury Instructions for government tenders administered by the Ministry of Finance Malaysia (Kementerian Kewangan) or by the private buyer's procurement procedures.

For construction projects in Malaysia, Quotations for building works must comply with the Construction Industry Development Board (CIDB) Act 1994 if the supplier is a registered CIDB contractor. All contractors performing construction works valued above RM 200,000 must hold a valid CIDB contractor registration, and their Quotations should reference their CIDB Grade and category.

The legal framework governing the Quotation Template (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Quotation Template (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies Act 2016 (Act 777) sets the foundational requirements.

A Quotation in Malaysia is needed whenever a supplier or service provider wishes to make a formal, documented offer to a prospective customer that will become binding upon acceptance.

A Quotation is required when a Malaysian technology company responds to a customer's request for pricing on software development, IT infrastructure, or managed services. The Quotation documents the agreed scope, deliverables, timeline, and price before any service agreement is signed under the Contracts Act 1950.

A Quotation is needed when a contractor or supplier participates in a competitive bidding process for a private sector project. Unlike a government tender governed by Treasury Circular 5/2007, private sector Quotations create contractual obligations upon acceptance without further formality.

A Quotation is required when a professional services firm — such as an accountancy firm registered with the Malaysian Institute of Accountants (MIA) under the Accountants Act 1967, or a law firm regulated by the Malaysian Bar under the Legal Profession Act 1976 — provides fee proposals to clients. The Quotation defines the scope of engagement and fees, forming the basis of the engagement letter or service agreement.

A Quotation is needed when a manufacturer quotes prices to a distributor or retailer for a new product line. The accepted Quotation forms the pricing basis for the subsequent Supply Agreement or distributorship arrangement under the Companies Act 2016.

A Quotation is required for import and export transactions where a Malaysian exporter responds to an overseas buyer's inquiry. Quotations for international trade must address Incoterms 2020 (e.g., FOB Penang, CIF Singapore) and whether the price is inclusive of export duties under the Customs Act 1967 administered by JKDM.

Parties in Malaysia should prepare a Quotation Template (Malaysia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

A valid and effective Quotation in Malaysia must contain the following essential elements.

Quotation Number and Date: Each Quotation must carry a unique reference number and the date of issue in DD/MM/YYYY format. The Quotation number is the primary document reference for Purchase Order matching and SST invoice correlation under JKDM audit requirements.

Supplier Details: The Quotation must state the supplier's full legal name, SSM registration number under the Companies Act 2016, registered address, and SST registration number (where applicable under the Sales Tax Act 2018). Contact details including the name and designation of the issuing officer should also appear.

Customer Details: The Quotation must identify the customer — including company name, SSM number, and address. For government customers, include the ministry or department code under the Government Financial Management Act 1969.

Scope of Goods or Services: Each item must be described with sufficient specificity — product code, description, unit, quantity, and unit price in RM. For services, describe the scope, deliverables, and timeline. Ambiguity in scope is a primary source of disputes resolved before the Sessions Court of Malaysia.

SST Treatment: Where the supplier is SST-registered, the Quotation must separately state the SST amount and rate (10% Sales Tax or 8% Service Tax) and the supplier's SST registration number. The total price inclusive of SST must be clearly stated.

Validity Period: The Quotation must state the period during which the offer is open for acceptance — for example, 30 days from the date of issue. Under Section 6 of the Contracts Act 1950, a proposal lapses if not accepted within the stated or reasonable time.

Payment Terms: The Quotation must state the payment terms — net 30 days, advance payment percentage, or milestone payments. Late payment provisions should reference the Contracts Act 1950 as amended by the Late Payment (Amendment) Act 2023.

Acceptance Method: The Quotation should specify how acceptance is to be communicated — by signing and returning the acceptance copy, by issuing a Purchase Order, or by email confirmation — to create certainty about when the binding contract is formed under Section 7 of the Contracts Act 1950.

Additional compliance elements for a Quotation Template (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.