FOOD and beverage (F&B) outlets have been facing uphill battles in getting the required licences to start their businesses due to the red tape involved, making the process tedious, industry players said.

They told The Malaysian Insight that they needed clarity from the authorities on such applications.

Restaurant and Bistro Owners Association vice-president and media liaison officer Jeremy Lim said it was not an easy process, as they had to go through various channels with the respective local councils and departments to obtain the licences. 

“On paper it sounds easy, but in reality it is quite difficult. We have very outdated and archaic laws,” he told The Malaysian Insight.

For example, he said that while on paper it takes 24 to 48 hours to get a licence, the reality was very different as local councils have different requirements. 

In some cases, applicants must show proof that renovation of premises had been 90% completed before an application can be made. 

“It is ridiculous because we are forced to apply for a licence after renting the premises, signing the tenancy agreement and hiring the staff. 

“What if the council rejects the application?” he asked.

Lim said for any F&B operation to commence, the first step was getting a premises licence. 

“The first step in setting up an F&B outlet is to get the premises licence, which will then determine whether it is a pub, restaurant or entertainment venue. 

“Then if the outlet is selling alcohol, they will have to apply for a liquor licence.” 

He said that once both the licences are approved, only then can the operator apply for an entertainment licence, such as for karaoke, live bands, entertainers, DJs and others.

As for the liquor licence, he said it all depended on the tripartite meeting among the local council, police and Customs Department to get approvals. 

“If there are no issues, then with the customs and council approval, the licence will be issued.

“But, the only problem is the tripartite meeting sometimes takes place once a month, and others meet two or three times a year. 

“So, if we want to start our businesses, for example in January, we can’t as we have to wait for the meeting to take place to get their approval for liquor licensing,” he said.

Ease the process

Lim said that for entertainment outlets, the operators must present an architect drawing of the layout, along with a separate request to be submitted to the council’s planning department. 

“Then they will have to wait again for a different tripartite meeting, which will involve the council, police and the Fire and Rescue Department.

“Even then they will have to wait and see when the meeting will be held. If they are lucky, they can get the entertainment licence in six months, otherwise, one would have to wait more than a year. 

“I wouldn’t be surprised if someone says: ‘I didn’t know I needed this licence to operate’. In all honesty it can be quite baffling (getting various licences).” 

He added that the government should make it easier for the entertainment industry to operate. 

“We hope that the law minister (Wan Junaidi Tuanku Jaafar) or the housing and local government minister (Reezal Merican Naina Merican) can look into the process of the Entertainment Act 1992. 

“Maybe they can engage with the entertainment industry to discuss the issue.” 

Lim said that the government must recognise the role the entertainment industry plays in supporting many Malaysians to earn a living. 

“The government should look into this as it affects many people’s livelihoods. 

“More than ever, we need help doing business because the market has just reopened after the pandemic.” 

On the issue of Crackhouse Comedy Club, which is being investigated for not having the appropriate licence to operate, Lim said what happened to the club was unfortunate.

“I wouldn’t be surprised if the club didn’t know that they needed an entertainment licence.

“Sometimes, it is not easy to get the right information on all the right licences an outlet needs to operate.” 

Kuala Lumpur City Hall (DBKL) previously ordered the club in Taman Tun Dr Ismail to close temporarily following a controversial incident of a woman who performed during an open mic session and removed her outer clothing and hijab to reveal a mini skirt underneath.

Deputy Federal Territories Minister Jalaluddin Alias said the decision to close the club was to send a message that the ministry and DBKL would not tolerate behaviour disrespecting the sensitivities of religion, race or sovereignty. – July 20, 2022.