Storage Unit Licence Agreement (Malaysia)
STORAGE UNIT LICENCE AGREEMENT
Contracts Act 1950 (Act 136) | Civil Law Act 1956 (Act 67) | Stamp Act 1949 (Act 378)
THIS STORAGE UNIT LICENCE AGREEMENT is entered into on [Agreement Date]
BETWEEN:
(1) [Operator Name], whose storage facility is at [Facility Address] (hereinafter referred to as the "Operator"); AND
(2) [Customer Name], of [Customer Address] (hereinafter referred to as the "Customer").
1. STORAGE LICENCE
1.1 The Operator hereby grants the Customer a personal licence to use storage unit no. [Unit Number], measuring approximately [Unit Size] (the "Unit"), at [Facility Address] for the storage of the following goods: [Goods Description] (the "Goods"), having an estimated value of [Estimated Value].
1.2 The licence commences on [Start Date] and continues on a [Period Type] basis until [End Date] or until terminated in accordance with this Agreement.
2. STORAGE FEE AND DEPOSIT
2.1 The Customer shall pay the Operator a monthly storage fee of [Monthly Fee], payable in advance on or before the 1st day of each calendar month.
2.2 The Customer shall pay a deposit of [Deposit] upon signing this Agreement. The deposit is refundable within 14 days of the Unit being cleared and vacated, less deductions for unpaid fees or damage to the Unit.
2.3 If the storage fee remains unpaid for more than 21 days, the Operator may seal the Unit and restrict access. If the fee remains unpaid for 30 days after sealing, the Operator may exercise the lien over the Goods under Section 170 of the Contracts Act 1950.
3. PERMITTED AND PROHIBITED GOODS
3.1 The Customer shall not store in the Unit any of the following: food or perishable items; flammable, explosive, or hazardous materials; illegal goods; live animals; cash or negotiable instruments; or any item prohibited by law.
3.2 The Customer warrants that all goods stored comply with the Environmental Quality Act 1974 (Act 127), the Customs Act 1967, and all applicable Malaysian legislation.
4. ACCESS
4.1 The Customer may access the Unit during the authorised access hours of [Access Hours].
4.2 The Operator may access the Unit at any time in the event of an emergency, or with 24 hours' notice for routine inspection or maintenance.
5. LIABILITY AND INSURANCE
5.1 The Operator shall take reasonable care of the Unit and the Goods as a bailee for reward under the Contracts Act 1950. The Operator shall not be liable for loss or damage caused by circumstances beyond its reasonable control including acts of God, fire, flood, or theft by third parties, unless caused by the Operator's negligence.
5.2 The Customer is strongly advised to obtain and maintain contents insurance for the Goods stored. The Operator's liability shall not exceed RM 5,000 per incident unless the Customer has declared a higher value and the Operator has confirmed cover in writing.
6. GENERAL PROVISIONS
6.1 This Agreement is governed by the laws of Malaysia.
6.2 Either party may terminate this Agreement on 30 days' written notice. The Customer must remove all Goods upon termination.
6.3 This Agreement shall be stamped at LHDN under the Stamp Act 1949 (Act 378). The cost of stamping shall be borne by the Customer.
Operator
________________
Signature
Customer
________________
Signature
What Is a Storage Unit Licence Agreement (Malaysia)?
A Storage Unit Licence Agreement in Malaysia grants defined rights to use the licensed subject matter on the terms it specifies.
Self-storage is a growing sector in Peninsular Malaysia, with operators including StoreHub, StorHub, Extra Space Asia, and various local providers in Kuala Lumpur, Selangor, Penang, and Johor Bahru. Storage units range from small lockers to large warehouse spaces measured in square feet, and are used by individuals, e-commerce businesses, and corporations for residential overflow, business inventory, and records management. Self-storage facilities are typically classified as industrial or commercial land use under local authority zoning by-laws.
Under the Contracts Act 1950, the bailee for reward — the storage operator — owes a duty to take reasonable care of the stored goods and is liable for loss or damage caused by its negligence. This duty was affirmed in Malaysian courts applying principles from the English case of Houghland v RR Low (Luxury Coaches) Ltd [1962] 1 QB 694. The licensor cannot wholly exclude liability for negligence under a printed standard form licence if the exclusion clause would be unreasonable under common law principles applicable in Malaysia.
Goods stored in a self-storage unit may be subject to lien by the facility operator for unpaid storage fees under Section 170 of the Contracts Act 1950, which permits a bailee to retain the goods until the charges are paid. Where the licensee abandons the goods or fails to pay fees for a specified period, the operator may apply to the Magistrates' Court or Sessions Court for an order of sale of abandoned goods under Section 30 of the Civil Law Act 1956.
The legal framework governing the Storage Unit 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 Storage Unit 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 Storage Unit Licence Agreement (Malaysia)?
A Storage Unit Licence Agreement in Malaysia is required whenever an individual or business uses a commercial self-storage facility and both parties need a written record of the terms governing access, payment, and liability.
A Storage Unit Licence Agreement is needed when an individual relocating within Malaysia or preparing a property for sale or renovation requires temporary storage for furniture, household effects, and personal belongings. LHDN does not impose stamp duty on residential self-storage licences below a de minimis threshold, but a written agreement protects the customer's rights in the event of damage or loss.
A Storage Unit Licence Agreement is required when an e-commerce seller or SME registered with SSM stores product inventory in a self-storage facility to fulfil orders through Shopee, Lazada, or TikTok Shop. The agreement records the permitted goods, access hours, and the operator's liability for damage to commercial stock.
A Storage Unit Licence Agreement is needed when a company under the Companies Act 2016 stores business records, accounting documents, or legal files in a secure off-site storage facility to comply with document retention obligations under Section 245 of the Companies Act 2016 (which requires financial records to be kept for 7 years).
A Storage Unit Licence Agreement is required when a university student, expatriate, or foreign national stores personal goods during an overseas posting or extended absence from Malaysia. The agreement specifies the licensor's obligations for security, climate control, and pest management during the storage period.
A Storage Unit Licence Agreement is needed when a licensed dealer in scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005 uses a designated storage unit — subject to the unit meeting Department of Environment (DOE) standards for scheduled waste temporary storage under the Environmental Quality Act 1974 (Act 127).
What to Include in Your Storage Unit Licence Agreement (Malaysia)
A complete Malaysia Storage Unit Licence Agreement must contain the following essential elements.
Parties: Full legal names and MyKad or passport numbers of the licensor (storage operator) and licensee (customer). For corporate customers, the SSM registration number and authorised signatory details. The licensor should confirm its legal authority to operate the storage facility, including any licences required from the local authority under the Local Government Act 1976.
Storage unit description: Unit number, floor or level, gross internal area in square feet or square metres, and any specific features such as climate control, CCTV coverage, and 24-hour access. A site plan identifying the unit location within the facility should be annexed.
Storage period: Commencement date in DD/MM/YYYY format and whether the licence is for a fixed term or rolling monthly basis. Rolling licences should state the minimum storage period and the notice period for termination, typically 14 to 30 days.
Storage fee: Monthly fee in Malaysian Ringgit (RM), due date, accepted payment methods (online transfer, credit card, or standing order), and late payment charges. Many operators charge an administrative fee and require one month's advance payment plus a refundable deposit.
Permitted goods: Clear statement of what may and may not be stored. Prohibited items typically include food and perishables, hazardous materials, illegal goods, cash and valuables above specified limits, and any goods subject to regulation under the Environmental Quality Act 1974 or the Customs Act 1967 (Act 235).
Access rights: The licensee's access hours, key or access card procedures, and the operator's right of access for inspection, maintenance, or emergency. The operator's right to seal the unit or restrict access for non-payment of fees should be clearly stated.
Insurance and liability: The operator's limitation of liability for loss or damage to stored goods, the licensee's obligation to maintain contents insurance, and the procedure for filing a claim. The Civil Law Act 1956 and common law principles of bailment govern the operator's duty of care as a bailee for reward.
Lien and abandoned goods: The operator's right to a lien over stored goods under Section 170 of the Contracts Act 1950 for unpaid fees, and the procedure for dealing with abandoned goods including notice requirements before disposal.
Additional compliance elements for a Storage Unit 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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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Storage Unit Licence Agreement (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/real-estate/leases/storage-unit-licence-malaysia
"Storage Unit Licence Agreement (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/real-estate/leases/storage-unit-licence-malaysia.
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author = {{Forms Legal}},
title = {Storage Unit Licence Agreement (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/real-estate/leases/storage-unit-licence-malaysia}},
note = {Free legal document template. Based on National Land Code 1965 (Act 56)}
}Frequently Asked Questions
A Storage Unit Licence Agreement is legally binding in Malaysia under the Contracts Act 1950 (Act 136) as a contract between the storage facility operator and the customer. The agreement creates both a licence to occupy the storage unit and a bailment relationship at common law, imposing on the facility operator the duty of a bailee for reward to take reasonable care of the stored goods. Malaysian courts applying common law bailment principles hold that a storage operator cannot wholly exclude liability for loss or damage caused by its own negligence or that of its employees, even where the agreement contains a broad exclusion clause. The agreement should be stamped at LHDN under the Stamp Act 1949 if it is for a fixed term or provides for periodic storage fees, to ensure admissibility in civil proceedings before the Magistrates' Court.
Self-storage facility operators in Malaysia typically prohibit storage of the following categories of goods: perishable food and organic materials that may attract pests; flammable, explosive, or hazardous materials regulated under the Environmental Quality (Scheduled Wastes) Regulations 2005 and the Occupational Safety and Health Act 1994 (Act 514); illegal goods or contraband under the Customs Act 1967 (Act 235), the Dangerous Drugs Act 1952, or the Firearms (Increased Penalties) Act 1971; live animals; and uninsured high-value items above specified thresholds such as cash, jewellery, artwork, or antiques. Storage of firearms requires compliance with the Arms Act 1960 (Act 206) and written consent of the facility operator. Breach of the permitted goods clause entitles the operator to terminate the licence and deny access to the unit without refund of the deposit.
If a licensee fails to pay storage fees in Malaysia, the self-storage operator may take several steps. First, the operator typically seals or padlocks the storage unit to restrict access until the outstanding fees are paid, as provided for in the licence agreement. Second, the operator has a lien over the stored goods under Section 170 of the Contracts Act 1950 — the right to retain the goods until the fees are paid. Third, if fees remain unpaid for a specified period (commonly 30 to 60 days), the operator may apply to the Magistrates' Court for an order to sell the goods and recover the debt from the proceeds under Section 30 of the Civil Law Act 1956, after giving the licensee reasonable written notice. Outstanding fees may also be claimed as a debt in the Magistrates' Court for claims up to RM 100,000 under the Subordinate Courts Act 1948.
A self-storage operator in Malaysia is liable as a bailee for reward under the Contracts Act 1950 and common law bailment principles for loss or damage to stored goods caused by the operator's negligence or failure to take reasonable care. The standard of care is that of a reasonably careful person in the position of the operator. This includes maintaining the facility's security, fire suppression systems, and structural integrity. The operator is not liable for damage caused by the customer's own negligence, acts of God, or inherent vice in the goods. Most standard-form storage agreements limit the operator's liability to a specified amount per unit or per incident. However, exclusion clauses that purport to exclude liability for the operator's own negligence entirely may be unenforceable under Malaysian common law. Licensees are strongly advised to maintain contents insurance for stored goods.
The notice period required to vacate a self-storage unit in Malaysia depends on the terms of the licence agreement. For a rolling monthly licence, the standard practice is 14 to 30 days' written notice before the end of a calendar month. For a fixed-term licence, the licensee may vacate without penalty at the end of the fixed term. Early termination of a fixed-term licence before expiry may result in forfeiture of the deposit and liability for the remaining fees until the operator finds a replacement customer, subject to the duty to mitigate under the Contracts Act 1950. Written notice should be given by registered post or email to create a documentary record. The storage unit must be cleared and left clean and free of damage, and the access card or key returned to the operator before the deposit is refunded.
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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