The term Logistics Services refers to a planned supply chain management process that implements and controls the flow and storage of goods and services related information between the point of origin and the point of use efficiently and effectively to meet customer requirements.
Licensing and Registration
Investors intending to provide transportation services are required to incorporate the company under the Companies Act, 2016.
The following licenses must be obtained:
(i) Licence for Commercial Vehicle and Haulage
• Transportation Services
Companies intending to provide transportation services to third parties using commercial vehicles are required to obtain a Carrier License A and a company providing services for own use is required to obtain Carrier License C. Both licenses must be obtained from the Land Public Transport Commission (SPAD) for operators in Peninsular Malaysia and Commercial Vehicles Licensing Board (CVLB) for operators in Sabah and Sarawak, in accordance with Commercial Vehicles Licensing Board Act, 1987.
Applications must be submitted to SPAD / CVLB.
• Transportation of Container Bulk, Bulk Liquid and General Haulage
Commercial vehicles used in the transportation of container bulk, bulk liquid and general haulage and freight, must be registered with Road Transport Department Malaysia (JPJ).
To register with JPJ, the following documents are required:
- Registration license with SPAD / CVLB.
- Inspection and weighing reports from Computerized Vehicle Inspection Center (PUSPAKOM).
- Ad Valorem Registration Fee (AVRF) Certificate and valuation (for trailers and semi trailers
in Peninsular Malaysia).
A separate application must be submitted to JPJ for each commercial vehicle.
(ii) Licence for Transporting Scheduled Wastes
In accordance with the Environmental Quality (Scheduled Wastes) Regulations, 1989, a company that transports scheduled waste is required to obtain a license from the Department Of Environment (DOE). This license is valid for one (1) year and is renewable.
(iii) Licence for Transportation of Radioactive and Nuclear Materials
Companies wishing to transport nuclear and radioactive materials are required to acquire a Class D License from the Atomic Energy Licensing Board (AELB).
Companies intending to provide transportation services are required to comply with the equity conditions imposed by SPAD / CVLB as follows:
• License A Application: The company must have at least 51% Malaysian equity (incl 30% Bumiputera equity) and foreign equity ownership up to 49% is allowed. Approval will be subject to a decision by the Licensing Committee. For courier service providers, foreign equity ownership up to 100% is allowed.
• License C Application: Foreign equity ownership up to 100% is allowed.
Specific Immigration Procedure
The company must apply for approval to hire expatriates from the Expatriate Committee from Immigration Department. Upon approval of the expatriate position, the company should proceed their application for an Employment Pass to the Immigration Department for endorsement. Spouses and expatriate children can apply for Dependent Pass after expatriate has been issued with Employment Pass. Dependent Pass can be applied together
with the application of Employment Pass or after the Employment Pass is approved. The spouses and children of expatriates who entered the country on a visit (temporary employment or professional) will be issued a visit (social) pass.
If you would like to know more, please contact Bestar.