Kuala Lumpur City Hall (“
DBKL”) has announced that, effective 1 July 2026, eligible business licences may be renewed for up to three years instead of renewal on an annual basis.
1 According to Hannah Yeoh, the Minister in the Prime Minister’s Department (Federal Territories), the initiative is aimed at making Kuala Lumpur’s business ecosystem more efficient and business-friendly.
In addition, licensees who opt for two-year or three-year renewals will enjoy discounts of 5% and 10% respectively, subject to certain conditions, including the absence of outstanding compounds or rental arrears with DBKL.
The move will reduce the administrative and operational burden associated with yearly licence renewals and provide businesses with greater certainty for financing and operational planning purposes. In particular, multi-year licences may facilitate applications for business financing or the opening of business accounts, as certain financial institutions require licences with a longer validity period.
Eligible businesses may renew their licences online through DBKL’s eLesen portal or at DBKL counters. The initiative will cover a wide range of business sectors, including office premises, hotels, food and beverage, manufacturing and industrial processing, workshops and engineering, warehouses and storage, livestock and agriculture and trade and commerce.
The initiative is a positive step towards reducing regulatory and administrative burdens on businesses. It is hoped that other local councils throughout Malaysia that require annual renewal of business premises licence will follow this initiative taken by DBKL.
Alert by Joey Tiw (Senior Associate) of the Corporate Practice of Skrine.