MEETING FEEDBACK ON THE IMPLEMENTATION OF LICENSE DEPOSIT CHARGE BY MAJLIS PERBANDARAN HULU SELANGOR (MPHS) ON NOVEMBER 26, 2025 - SKLR/HS/1/2025

To: FMM Hulu Selangor Member Companies

With due respect, reference is made to the above matter.

Following the meeting held on November 26, 2025, between the Yang Dipertua (YDP) of MPHS, Puan Julaihah, and the FMM Selangor and Kuala Lumpur Branch led by Branch Chairman Dr. Helena  together with the Hulu Selangor Regional Committee Members, to seek clarification on the proposed license deposit policy, FMM engaged with the YDP to obtain clearer information on the matter, as the proposed policy may carry significant operational and cost implications for industries in Hulu Selangor. The YDP clarified that the deposit charges are imposed under Undang-Undang Kecil Majlis (Pelesenan 2007),Bahagian 2, Perenggan 4, as a security measure to ensure compliance with stipulated conditions, particularly concerning issues such as open burning, air pollution, stray dog and etc. Subsequently, feedback and updates were shared by the YDP during MPHS Council Meeting No. 11/2025, reflecting the council’s intention to strengthen regulation and monitoring of business operations while enhancing compliance with the conditions set by the local authority.

Attached herewith is the response letter from the MPHS Licensing Department (Ref: 81.dlm.MPHS.73/19 JLD.2) dated 3 December 2025,providingofficial feedback on the implementation of the License Deposit imposed by MPHS for your information and further reference /images/articles/2025/MAKLUM BALAS BERKAITANMERSYUARAT PENJELASAN CAJ DEPOSIT LESEN.pdf.

(a) Industrial Category

• The license deposit is fixed at RM5,000 for businesses involved in manufacturing, processing, and storing activities.
• Payment in instalments is allowed; however, applicants are required to submit an appeal letter to the Licensing Department to request instalment payment.

(b) SME Industrial Category

• For SMEs in the industrial category engaged in selling and storing activities with a license fee exceeding RM500, the deposit is set at three times the license fee. For businesses/industries classified as Small and Medium Enterprises (SMEs), if the deposit amount exceeds RM3,000, a maximum deposit of RM3,000 will be charged. Appeal letters may be submitted to the Licensing Department.

• Applicants are required to submit a valid SME certification http://mybpi.smecorp.gov.my/ document as supporting evidence before the deposit amount can be approved. Appeal letters can be submitted to the Licensing Department if necessary.

MPHS has provided a concession for the payment of the license deposit. The deposit may be paid in two instalments, applicable to all applicants:

• The first instalment during the license renewal in 2026
• The second instalment during the license renewal in 2027

Please refer to the official letter from MPHS /images/articles/2025/MAKLUM BALAS BERKAITANMERSYUARAT PENJELASAN CAJ DEPOSIT LESEN.pdf. for detailed explanations.

This information is extended to all FMM Hulu Selangor members for their attention and necessary action.

Please click here to view the circular

For further inquiries, please contact Ms Nor Azelawati Binti Zainudin of FMM Selangor & Kuala Lumpur atTel:03-55692950 or email at fmmselangor@fmm.org.my