Government pledges to slash red tape for business applications, says Hannah Yeoh

PETALING JAYA, KUALA LUMPUR (KL), 26 SEPTEMBER 2026 —

Malaysia’s government pledges full digitalisation of business applications to slash red tape, with KL business licences extended and entertainment deposits cut by 70%

The Malaysian government has committed to fully digitalising business application processes to eliminate bureaucratic delays, with Minister in the Prime Minister’s Department (Federal Territories) Hannah Yeoh announcing sweeping reforms aimed at reducing administrative burdens and corruption risks. Speaking at the Malaysia Retail Chain Association’s (MRCA) Installation and 34th Anniversary Night in Petaling Jaya, Yeoh outlined concrete steps—including extended licence renewals and slashed entertainment deposits—to ease operational costs for businesses amid evolving digital and consumer trends.

The move shows a direct response to long-standing complaints from entrepreneurs about time-consuming approval processes and the need for constant follow-ups with government officers. Yeoh framed the reforms as a reciprocal obligation, stating that while businesses must adapt to global shifts—such as the rise of online commerce—the government must also streamline its own systems.

"I may not have the money to put cash in your hands, but I promise to review and cut out corruption, to cut out unnecessary processes so that you can save money and time, and make business easier for everybody," she said, emphasising that retailers already face enough challenges navigating digital transformation and shifting consumer behaviours.

The government’s immediate reforms include extending the validity of eligible Kuala Lumpur City Hall (DBKL) business licences from one year to up to three years, with discounts incentivising longer renewals: a 5% reduction for two-year renewals and a 10% discount for three-year terms. Deposits for concerts and local shows in the capital have been slashed by 70%, a direct boost to the entertainment and events sector.

Yeoh also urged physical retailers to pivot from traditional shopping models by transforming malls into multifunctional community hubs, offering integrated food, cultural, and entertainment experiences to counter the dominance of online shopping. She highlighted the need for compelling in-person value propositions, particularly as e-commerce continues to reshape consumer habits.

The digitalisation push extends beyond licencing to broader administrative efficiency, with Yeoh stressing that the government will eliminate redundant procedures to reduce costs and corruption opportunities. The reforms align with broader regional trends, where Southeast Asian governments are increasingly turning to automation and single-window systems to attract investment. However, the success of Malaysia’s initiative will hinge on execution—particularly whether the promised digitalisation translates into seamless, corruption-free processes for businesses.

Yeoh’s remarks also signal a recognition of demographic shifts, advising traditional retailers to leverage younger talent to accelerate digital adoption, noting that both youth and senior citizens are now active on e-wallet and online purchasing platforms.

For Kuala Lumpur-based businesses, the licence extensions and deposit cuts offer immediate relief, though the broader digitalisation timeline remains unspecified. The MRCA event, attended by retail leaders, provided a platform for Yeoh to underscore the government’s commitment to reducing friction in business operations.

Her call for retailers to embrace innovation—such as integrating digital tools and reimagining physical spaces—reflects a dual strategy: easing regulatory burdens while pushing the private sector to adapt to a rapidly changing market. The next phase will likely involve closer collaboration between government agencies and industry associations to ensure the digital systems are user-friendly and corruption-resistant, with Yeoh’s promise of regular reviews suggesting ongoing adjustments based on feedback.

Related: Hannah Yeoh