Commercial lease in Malaysia: Template, Key Clauses and Local Law (2026)

What a Malaysian commercial lease is, and what local law requires A commercial lease or tenancy in Malaysia lets a business occupy a shop, office, warehouse or industrial unit in return for rent. Malaysia has no dedicated commercial tenancy statute. The agreement is governed by the Contracts Act 1950 and the common law, while the National Land Code 1965 sets the rules on registration. The most important line to understand is the three year line: - Tenancy (three years or less). An agreement for a term of three years or less is a tenancy, and it does not need to be registered at the land office. This covers most commercial occupation.

• Lease (more than three years). An agreement for more than three years is a lease. It must be completed in the statutory form (Form 15A) and registered with the land office under the National Land Code. An unregistered lease that should have been registered can be treated as void as a lease. Two more rules apply to both: - Stamp duty. A tenancy or lease must be stamped. Under the Stamp Act 1949, an unstamped agreement is not admissible as evidence in court. Duty is charged per RM250 of annual rent, by term: RM1 for up to one year, RM3 for over one to three years, RM5 for over three to five years and RM7 for over five years. The old RM2,400 rental exemption was removed from 1 January 2025. Stamping should be done within 30 days of signing, and the tenant usually pays, though the parties can agree otherwise.
• Registration vs stamping. Stamping is a tax step for every agreement. Registration at the land office is a separate step needed only for a lease over three years. This is general guidance, not legal advice. Confirm the current position with the Inland Revenue Board (LHDN), the land office or a Malaysian lawyer before you rely on any clause. Last verified October 2026. ## Malaysia commercial tenancy template Copy the block below and fill the bracketed fields. This suits a tenancy of three years or less; a lease over three years also needs Form 15A and land office registration. ``` COMMERCIAL TENANCY AGREEMENT Made on [DATE] BETWEEN: [LANDLORD NAME], NRIC / company no. [no.], of [address] ("Landlord") AND [TENANT NAME], company no. [no.], of [address] ("Tenant") 1. PREMISES The Landlord lets to the Tenant the unit at [full address, title details, area] (the "Premises"), for use only as [permitted use]. 2. TERM The term is [N, three years or less for a tenancy] from [START] to [END]. [Option to renew.] 3. RENT AND DEPOSIT Monthly rent is RM [AMOUNT], payable in advance by [date]. The Tenant pays a security deposit of [N months] rent and a utility deposit of [amount], refundable less lawful deductions. 4. STAMP DUTY The parties will stamp this Agreement within 30 days of signing. [State who pays the stamp duty.] 5. USE, FIT-OUT AND ALTERATIONS The Tenant will use the Premises only for the permitted use and will not alter the structure without the Landlord's written consent. [Fit-out, reinstatement on exit.] 6. MAINTENANCE AND OUTGOINGS The Landlord maintains [structure, main systems] and pays [quit rent, assessment]. The Tenant maintains [interior] and pays [utilities, service charges]. 7. ASSIGNMENT AND SUBLETTING The Tenant may not assign or sublet without the Landlord's written consent. 8. RENEWAL AND RENT REVIEW [Renewal option, notice window and how any rent review is set.] 9. TERMINATION Either party may end this Agreement on [N] notice, or for a breach not cured in [N] days. [Early exit and deposit forfeiture terms.] 10. GOVERNING LAW This Agreement is governed by the laws of Malaysia. Signed: Landlord: __________ Tenant: __________

- **Rent and deposit (clause 3).** State the rent, the deposit (often two to three months), the utility deposit and the conditions for return.
- **Stamp duty (clause 4).** Stamp within 30 days. Remember the duty is charged per RM250 of annual rent by term, and the old RM2,400 exemption no longer applies.
- **Outgoings (clause 6).** Split quit rent and assessment (usually the landlord) from utilities and service charges (usually the tenant), and say so clearly.
- **Renewal and review (clause 8).** Set the renewal option, the notice window and how a rent review is calculated, so a renewal does not turn into a fresh negotiation under pressure. ## Red flags to check before you sign - A term over three years that is not registered on Form 15A, which can be void as a lease.
- An unstamped agreement, which is not admissible as evidence in court.
- Stamp duty worked out on an old basis, such as the removed RM2,400 exemption.
- Quit rent, assessment and service charges left unallocated.
- A permitted use that does not fit the business or the local authority's zoning.
- A deposit with no clear return conditions. ## A stamp duty worked example Stamp duty on a Malaysian tenancy is easier to get right with a worked example. Suppose the monthly rent is RM3,000 and the term is two years. The annual rent is RM36,000. Duty is charged per RM250 of annual rent. Divide RM36,000 by RM250, which gives 144 units. For a term over one year up to three years, the rate is RM3 per unit, so the duty is 144 multiplied by RM3, which is RM432. Two points often trip people up. First, the old RM2,400 exemption that used to be deducted from the annual rent was removed from 1 January 2025, so do not subtract it. Second, the rate depends on the term band, not just the rent, so a longer term at the same rent costs more per unit. Stamp within 30 days of signing to avoid a late penalty, and remember that stamping is a separate step from land office registration, which is only needed for a lease of more than three years. Confirm the current rate with LHDN before you rely on a figure. ## A note on jurisdiction and Adira's coverage Stamp duty figures and the registration rules can change, so confirm the current position with LHDN or the land office. Adira is India first in its depth today and uses an international setting for other jurisdictions. Deep, verified Malaysian coverage is on Adira's roadmap rather than established today, so treat any Malaysia specific output as a draft to check locally. ## Where a contract workspace helps A template gets you a sound Malaysian commercial tenancy. The ongoing work is keeping every agreement consistent, tracking each stamping deadline, renewal date and notice window, and holding signed versions in one place so nothing lapses. When drafting, review and tracking live in one AI workspace tuned to how your company leases, the stamping deadline, rent and renewal dates stay visible instead of sitting in a folder. [Adira](https://adiralaw.com) is one workspace built to work this way, with Malaysian depth on its roadmap. This template alone is enough to put a fair tenancy in place today.