What is KPDN in Malaysia?

If you plan to run a trading, retail, or wholesale business in Malaysia, you may come across the term KPDN. Many business owners are unsure what it is and whether they need approval from it.
February 27, 2026 by
What is KPDN in Malaysia?
CONZLAB BERHAD 202301040401 (1534320P), Jeffrey Eh

What is KPDN?

KPDN stands for the Kementerian Perdagangan Dalam Negeri dan Kos Sara Hidup (Ministry of Domestic Trade and Cost of Living Malaysia).

It is a government body that regulates domestic trade, consumer protection, and business licensing in Malaysia.


What Does KPDN Do?

KPDN is responsible for regulating businesses that buy and sell goods locally.

Its main roles include:

  • Issuing trading licenses
  • Monitoring retail and wholesale businesses
  • Protecting consumer rights
  • Preventing illegal trading activities
  • Controlling supply of essential goods


Why is KPDN Important for Businesses? ​

If your company is involved in trading goods, you may need KPDN approval before operating legally.

This is especially true for:

  • Wholesale businesses
  • Retail companies
  • Import/export traders
  • Distributors and suppliers

Without proper approval, businesses may face fines or license rejection.

What is a KPDN License?

A KPDN license is commonly required for:

1. Wholesale, Retail, and Trade (WRT) License


This is the most common KPDN approval.

It is required for:

  • Foreign-owned companies
  • Import/export businesses
  • Wholesale and distribution companies

This license ensures the business complies with Malaysia’s trade regulations.

2. Controlled Goods Permits

KPDN regulates certain controlled items such as:

  • Sugar
  • Cooking oil
  • Petrol and diesel
  • Flour

Businesses dealing with these goods may need additional permits.

Who Needs KPDN Approval?

You may need KPDN approval if:

  • Your company has foreign shareholders
  • You operate a wholesale or distribution business
  • You import and resell goods in Malaysia
  • You apply for a WRT license

Documents Usually Required for KPDN Applications

While requirements vary, common documents include:

  • Company registration documents
  • Business profile
  • Shareholder details
  • Office tenancy agreement
  • Business activity description

What Happens if You Operate Without KPDN Approval?

If your business requires KPDN approval but does not have it, you may face:

  • Business operation issues
  • License rejection
  • Government penalties
  • Difficulty opening trade accounts

Need Help with KPDN Registration?

Navigating KPDN requirements can be confusing without proper guidance. Our experienced team can assist you with KPDN applications, documentation, and compliance to ensure your trading business operates legally and smoothly under KPDN

Contact us today to simplify your KPDN approval process.

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What is KPDN in Malaysia?
CONZLAB BERHAD 202301040401 (1534320P), Jeffrey Eh February 27, 2026
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