Malaysia requires a licence from the Ministry of Tourism, Arts and Culture (MOTAC) to run a tour operating or travel agency business. The categories, requirements and what to prepare.
1. The travel market in Malaysia
Most new agencies in Malaysia focus on outbound holidays & inbound tours. Decide early whether you will sell to travellers in Malaysia, design trips in Malaysia for visitors and foreign agents, or both: the answer shapes your licence, suppliers and marketing.
Clients will expect quotations in MYR or their own currency, fast replies, and clear terms before they pay.
2. Licences and registration
Under section 5 of the Tourism Industry Act 1992 (Act 482), you may not operate a tour operating or travel agency business without a valid licence from the Ministry of Tourism, Arts and Culture (MOTAC).
MOTAC licenses different categories of business, including inbound, outbound and ticketing, each with its own minimum paid-up capital and ownership rules set out in MOTAC's application guideline. Licensed agencies must show their licence number in their advertising.
3. Company, tax and banking
Register the company with the Companies Commission of Malaysia (SSM) and with the Inland Revenue Board, and check whether SST applies to your services.
4. Set up sales and operations
Before the first enquiry arrives, decide how you will capture leads, build quotations, confirm suppliers, invoice and collect payments. For your market, plan these workflows from day one:
5. Launch checklist
Tick these off before you take your first payment in Malaysia.
Frequently Asked Questions
Do I need a MOTAC licence to run a travel agency in Malaysia?
Yes. The Tourism Industry Act 1992 prohibits operating a tour operating or travel agency business without a valid licence.
Sources
Official pages this guide is based on, checked on 11 October 2026. Rules and fees change: confirm the current requirements with the authority before you apply. This guide is general information, not legal advice.