Kiosk Licence Agreement (Malaysia)
KIOSK LICENCE AGREEMENT
Contracts Act 1950 (Act 136) | Distress Act 1951 (Act 251) | Local Government Act 1976 (Act 171)
THIS KIOSK LICENCE AGREEMENT is entered into on [Agreement Date]
BETWEEN:
(1) [Licensor Name], of [Licensor Address] (hereinafter referred to as the "Licensor"); AND
(2) [Licensee Name], of [Licensee Address] (hereinafter referred to as the "Licensee").
1. GRANT OF LICENCE
1.1 The Licensor hereby grants to the Licensee a personal, non-exclusive, non-transferable licence to occupy and use the kiosk space at [Kiosk Location], comprising approximately [Kiosk Area] (the "Kiosk"), for the sole purpose of conducting the following permitted activities: [Permitted Trading Activities].
1.2 The Licence shall commence on [Start Date] and expire on [End Date] (the "Licence Period"), unless earlier terminated in accordance with this Agreement.
1.3 This Agreement creates a licence only and does not create a tenancy, lease, or any interest in land. The Licensor retains management and control of the Kiosk and the Building at all times.
2. LICENCE FEE AND DEPOSIT
2.1 The Licensee shall pay the Licensor a monthly licence fee of [Monthly Fee] (the "Licence Fee"), payable in advance by the 7th day of each calendar month.
2.2 The Licensee shall pay a deposit of [Deposit] upon execution of this Agreement, refundable within 30 days after the expiry or termination of this Agreement and the satisfactory vacation and restoration of the Kiosk, less deductions for unpaid fees or damage.
2.3 If the Licence Fee is not paid within 14 days of the due date, the Licensor may charge interest at 1.5% per month on the outstanding amount and may restrict the Licensee's access to the Kiosk.
3. KIOSK OPERATIONS
3.1 The Licensee shall operate the Kiosk during the required operating hours of [Operating Hours], or such hours as directed by the mall management.
3.2 The Licensee shall at its own cost obtain and maintain all licences and permits required by law for its business operations, including a business licence from the relevant local authority under the Local Government Act 1976 and a food premises licence from the Ministry of Health Malaysia where applicable.
3.3 The Licensee shall comply with all building management rules, regulations, and guidelines issued by the Licensor from time to time regarding the use of the Kiosk and the Building.
3.4 The Licensee shall not sell, display, or promote any goods or services outside the Kiosk area or the permitted trading activities stated above without the Licensor's prior written consent.
4. TERMINATION
4.1 The Licensor may terminate this Agreement immediately upon written notice if the Licensee: (a) fails to pay the Licence Fee for two or more consecutive months; (b) breaches the permitted activities clause; (c) loses any required licence or permit; or (d) becomes insolvent or enters into liquidation.
4.2 Either party may terminate this Agreement by giving 30 days' written notice after the initial 6-month period of the Licence Period.
4.3 Upon termination or expiry, the Licensee shall remove all its fittings, equipment, and stock from the Kiosk within 3 days and restore the Kiosk to its original condition.
5. GENERAL PROVISIONS
5.1 This Agreement is governed by the laws of Malaysia including the Contracts Act 1950 (Act 136).
5.2 This Agreement shall be stamped at LHDN under the Stamp Act 1949 (Act 378). The cost of stamping shall be borne by the Licensee.
5.3 This Agreement constitutes the entire agreement between the parties with respect to the Kiosk and supersedes all prior representations or arrangements.
Licensor
________________
Signature
Licensee
________________
Signature
What Is a Kiosk Licence Agreement (Malaysia)?
A Kiosk Licence Agreement in Malaysia grants defined rights to use the licensed subject matter on the terms it specifies.
Kiosk licences are prevalent in major shopping malls in Kuala Lumpur, Petaling Jaya, Johor Bahru, and Penang, where mall operators grant short-term trading licences for kiosks in common mall areas, atria, corridors, and designated retail zones. Mall operators including Pavilion Kuala Lumpur, Sunway Pyramid, Mid Valley Megamall, and 1 Utama Shopping Centre regularly use kiosk licence agreements as the instrument for temporary and seasonal retail concessions. The licence fee structure typically includes a base monthly licence fee plus a percentage of monthly gross turnover, and the licensor typically provides utilities connections and security within the mall.
Under the Strata Management Act 2013 (Act 757), kiosk spaces within strata commercial developments must comply with the by-laws and commercial activity guidelines of the Management Corporation. In addition, all kiosk operations must comply with applicable local authority requirements — including trading licences issued by the Kuala Lumpur City Hall (DBKL), Petaling Jaya City Council (MBPJ), or the relevant Majlis Perbandaran under the Local Government Act 1976 (Act 171).
The Distress Act 1951 (Act 251) applies to kiosk licences that are structured as licences to occupy commercial premises, giving the licensor a right to distrain the licensee's goods for unpaid licence fees in the same way as for rent arrears. This remedy is available before the Magistrates' Court under Section 4 of the Distress Act 1951. Kiosk licence agreements for a fixed term should be stamped at LHDN under the Stamp Act 1949 (Act 378) to be admissible as evidence.
The legal framework governing the Kiosk Licence Agreement (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 Kiosk Licence Agreement (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The National Land Code 1965 (Act 56) sets the foundational requirements.
When Do You Need a Kiosk Licence Agreement (Malaysia)?
A Kiosk Licence Agreement in Malaysia is required whenever a mall operator, building owner, or commercial landlord grants a trader the right to operate from a kiosk, island unit, or temporary trading space.
A Kiosk Licence Agreement is needed when a small or medium enterprise (SME) registered under the Companies Act 2016 or a sole proprietor registered under the Registration of Businesses Act 1956 (Act 197) wishes to trade from a shopping mall kiosk without entering into a full shop lot tenancy. Kiosk licences are shorter in duration and involve lower upfront commitment than conventional retail tenancies.
A Kiosk Licence Agreement is required when a brand launches a seasonal or pop-up activation — such as a Raya, Chinese New Year, or Deepavali festive promotion — in a mall common area for a period of days or weeks. The short-term, revocable nature of a licence is appropriate for temporary promotions that do not justify a formal tenancy.
A Kiosk Licence Agreement is needed when a food and beverage operator establishes a kiosk or cart within a food court, hospital lobby, university campus, or office tower common area, where the building operator maintains overall control and cleaning obligations for the shared space.
A Kiosk Licence Agreement is required when a telecommunications company such as Maxis, Celcom, or Digi (now CelcomDigi Berhad) operates a sales and service counter kiosk within a shopping mall, hypermarket, or transit hub under a licence from the property owner.
A Kiosk Licence Agreement is needed when a government agency or statutory body permits a private operator to run a kiosk within a government building, public hospital, or KTMB or Prasarana rail station, where public access and regulatory obligations impose conditions beyond those in a standard commercial tenancy.
What to Include in Your Kiosk Licence Agreement (Malaysia)
A complete Malaysia Kiosk Licence Agreement must contain the following essential elements.
Parties: Full legal names and identification details of the licensor (building owner or mall management company) and the licensee (kiosk operator). For corporate parties, include the SSM registration number under the Companies Act 2016. The licensor should confirm its authority to grant the licence, whether as registered owner, principal tenant, or authorised management corporation under the Strata Management Act 2013.
Kiosk location and description: Precise identification of the kiosk space — level, unit number or zone code, gross floor area in square metres, and a plan attached as a schedule showing the exact location within the building. Any fixtures, fittings, or utilities provided by the licensor should be itemised.
Licence period: Start date and end date in DD/MM/YYYY format, or a rolling monthly term. Most mall kiosk licences run for 6 to 24 months, with renewal at the mall operator's discretion. The licence period distinguishes this instrument from a long-term tenancy.
Licence fee structure: Monthly base fee in Malaysian Ringgit (RM), any turnover-based component (percentage of gross sales), and the payment schedule. The licensor typically issues a monthly invoice and the licensee pays by the 7th day of each month.
Deposit: The deposit amount (typically 2–3 months' licence fee), conditions for deduction, and timeline for refund after the licence ends and the kiosk is vacated and restored to its original condition.
Permitted trading activities: Specific description of the goods or services the licensee is authorised to sell from the kiosk. Any changes to the product range require prior written consent of the mall management, consistent with mall tenant mix policies.
Operating hours: The licensee's obligation to operate during the mall's standard trading hours and to comply with any extended hours directives of the mall management.
Licensee's compliance obligations: Compliance with local authority trading licences under the Local Government Act 1976, food handling licences from the Ministry of Health Malaysia (MOH) where applicable, fire safety requirements under the Fire Services Act 1988, and the mall's tenancy guidelines and house rules.
Termination: Licensor's right to terminate immediately for breach of the permitted use clause, non-payment of fees, insolvency, or breach of local authority regulations. Licensee's right to terminate on 30 days' written notice for a rolling licence.
Additional compliance elements for a Kiosk Licence Agreement (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.
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Forms Legal. (2026). Kiosk Licence Agreement (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/real-estate/leases/kiosk-licence-agreement-malaysia
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year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/real-estate/leases/kiosk-licence-agreement-malaysia}},
note = {Free legal document template. Based on National Land Code 1965 (Act 56)}
}Frequently Asked Questions
A Kiosk Licence Agreement in Malaysia differs from a tenancy agreement in that a licence does not confer exclusive possession of the kiosk space as a legal estate in land, while a tenancy does. Under Malaysian common law, applying the Contracts Act 1950 (Act 136), a licence is a personal permission to occupy that remains revocable by the licensor, whereas a tenancy grants the tenant rights enforceable against third parties including the licensor's mortgagee bank. In a typical mall kiosk arrangement, the mall operator retains the right to relocate the kiosk to a different position within the mall, to share the surrounding common area with other traders, and to close the mall for cleaning, renovation, or events — all of which are inconsistent with exclusive possession. These features support a licence characterisation. The Distress Act 1951 (Act 251) applies to both licences and tenancies for commercial premises, giving the licensor a right to distrain goods for unpaid fees.
A kiosk operator in Malaysia requires a business licence issued by the local authority under the Local Government Act 1976 (Act 171) — for example, from the Kuala Lumpur City Hall (DBKL), Petaling Jaya City Council (MBPJ), or the relevant Majlis Perbandaran. The trading licence specifies the type of goods or services permitted and must be renewed annually. For food and beverage kiosks, an additional food premises licence from the Ministry of Health Malaysia (MOH) under the Food Act 1983 and the Food Hygiene Regulations 2009 is mandatory. Food handlers must hold valid food handler certificates. For kiosks selling pharmaceutical products, a licence from the Pharmaceutical Services Programme under the Pharmacy Act 1951 is required. The kiosk operator's company or sole proprietorship must also be registered with SSM under the Companies Act 2016 or the Registration of Businesses Act 1956.
A mall operator in Malaysia may terminate a kiosk licence before its expiry if the licensee breaches the terms of the agreement — such as non-payment of licence fees, selling goods outside the permitted product range, or violating mall house rules. The licensor may also terminate on reasonable notice for redevelopment, force majeure, or a national emergency affecting the mall, as recognised by Malaysian courts applying the Contracts Act 1950 and the doctrine of frustration under Section 57 of the Contracts Act 1950. For a fixed-term licence, termination without cause before expiry exposes the licensor to a claim for damages representing the licensee's loss of profit for the unexpired period. Mall operators typically include a relocation clause allowing them to move the kiosk to another approved location within the same mall, rather than terminating the licence outright.
A Kiosk Licence Agreement in Malaysia for a fixed term or providing for periodic payments should be stamped at LHDN under the Stamp Act 1949 (Act 378). Stamp duty is assessed under Schedule 1, Item 22 based on the annual licence fee. The rate is RM 1 per RM 250 of annual rent for licences not exceeding one year, with higher progressive rates for longer terms. An unstamped kiosk licence agreement is inadmissible as evidence under Section 52 of the Stamp Act 1949 in proceedings before the Magistrates' Court or Sessions Court, though the agreement remains contractually binding between the parties. Stamping may be done at any LHDN office or through the LHDN e-Stamping portal. The cost of stamping is typically borne by the licensee. Under Malaysia law, National Land Code 1965 (Act 56), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. 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). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
If a kiosk operator in Malaysia fails to pay the licence fee, the licensor has two principal remedies. First, the licensor may terminate the licence agreement for breach and demand vacant possession of the kiosk. Second, for commercial kiosk licences that are structured as licences to occupy commercial premises, the licensor may apply for a Writ of Distress under Section 4 of the Distress Act 1951 (Act 251) at the Magistrates' Court, authorising the court bailiff to seize the licensee's moveable goods within the kiosk to satisfy the unpaid fees. This remedy is available without first obtaining a judgment and is unique to Malaysian law among common law jurisdictions. The licensor may also claim unpaid fees as a debt in the Magistrates' Court (for claims up to RM 100,000) or Sessions Court (for claims up to RM 1,000,000) under the Subordinate Courts Act 1948.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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