THE federal government has not revoked orders allowing the state governments to decide whether to require retail outlets to be licensed to sell alcohol, Finance Minister Tengku Zafrul Abdul Aziz said.

“Allegations that the Finance Ministry (MOH) has rescinded these powers are not true. As I have said earlier, there was some confusion on the implementation at the state level.

“Although the retail sale of alcoholic drinks falls under the Licensing Board, this authority has been delegated to the menteri besar or chief minister through a government order in 1977,” Tengku Zafrul told Parliament during minister’s question time this morning.

“There have been no changes to this order and it will stand,” said the minister.

The minister was responding to Tony Pua (Damansara-PH) who asked about the requiremeent for coffee shops to be licensed to sell beer.

Yesterday, Transport Minister and MCA president Dr Wee Ka Siong said the directive to enforce licences for the retail sale of alcoholic beverages had been cancelled.

“On November 23, the Finance Ministry had issued an official letter to instruct the Customs Department to cancel the implementation of making liquor licenses compulsory for selling alcoholic drinks,” said Wee.

“This is because the Finance Ministry had in 1977 authorised the menteris besar or chief ministers of each state to handle this matter through the Licensing Board under the respective local governments.

“The Customs Department is part of the Licensing Board of each state and it has no power to instruct restaurants and coffee shops to apply for liquor licenses.

“Therefore, the Finance Ministry had cancelled the circular issued on April 7 which asked business owners to apply for liquor licences from the Customs Department before December 31,” said the Ayer Hitam MP.

Tengku Zafrul today said that the order still stood.

“This matter will be resolved by December 31, 2021. Until then, any issues dealing with licensing or exemptions are in the state governments’ purview”

It was reported that starting next year, the Customs Department will require coffee shops and restaurants to apply for a licence to sell alcohol.

The ruling has been slammed for adding to the financial burden on coffee shop and restaurant operators who are already suffering from the economic effects of the Covid-19 pandemic. – December 9, 2021.