Malaysia Tenancy Agreement Template: Standard Format, Sample Clauses and What a Factory Lease Adds

Key Takeaways

• Malaysia has no official, government-issued tenancy agreement template in force. The Residential Tenancy Act is still being finalised by KPKT (Bernama, 4 August 2026), and it is aimed at homes, not factories or warehouses.
• Under the National Land Code, a tenancy of up to three years can be made in writing in any form, or even orally (section 213). A lease of more than three years is a registered lease in Form 15A (section 221).
• A sound template follows one format: parties, recitals, a schedule of key terms, the grant and term, rent and deposits, tenant and landlord covenants, renewal, default and termination, handover, general clauses, execution and annexures.
• A factory or warehouse agreement needs clauses a house template does not have: permitted industrial use and licences, power supply, floor loading, fire certificate, alterations and reinstatement, and service tax on rent.
• Stamp the signed agreement within 30 days on MyTax. For agreements signed from 2025 the duty is RM1, RM3, RM5 or RM7 per RM250 of annual rent depending on the term (Finance Act 2024, section 27).

People search for a "Malaysia tenancy agreement template", a "sample" or the "standard format" because they want something they can fill in and sign. This guide gives you that structure clause by clause, shows sample wording you can adapt, and explains what changes when the premises is a factory or warehouse rather than a condo. This is general information, not legal or tax advice: have a lawyer review the final agreement.

Is there a standard tenancy agreement in Malaysia?

No. There is no statutory form that landlords and tenants must use. KPKT is still finalising the Residential Tenancy Bill, and the government has said it does not plan nationwide rent controls (Bernama). A "Standard Tenancy Agreement" covering duration, deposits, rent, maintenance, utilities, termination notice and renewal has been discussed as part of that proposed residential law (Bernama, 14 August 2026), but it is not in force, and even when it arrives it is designed for homes.

So every "standard" template you find online is simply a private document that someone drafted. That is legally fine: section 223 of the National Land Code lets an owner grant a tenancy of up to three years "by word of mouth or by a written instrument in any form whatsoever", and section 213 confirms such a tenancy needs no registration. What matters is whether the template covers your deal properly.

Tenancy or lease: the three-year line

This matters for factories. Many industrial tenants sign a 3 year term with an option to renew instead of a 6 year lease. Section 213(3) warns that an unregistered tenancy granted after the Code started does not bind a later buyer or chargee of the property unless it was protected by an endorsement on the register document of title before that dealing. If you are fitting out a factory, ask your lawyer about protecting the tenancy.

What format does a Malaysian tenancy agreement follow?

Most well-drafted agreements put the commercial terms in a schedule at the front or back and keep the main body standard. That way both sides can see the deal on one page. Use this as your template checklist:

What do the standard clauses say? Sample wording

The lines below are sample wording to show the shape of each clause. Replace the brackets with your own terms and have a lawyer settle the final text.

Rent clause

"The Tenant shall pay the monthly rent stated in Section [5] of the Schedule in advance on or before the [7th] day of each calendar month, without deduction, by bank transfer to the account nominated by the Landlord in writing."

Deposit clause

"Upon signing, the Tenant shall pay the security deposit and the utility deposit stated in the Schedule. The deposits shall not be treated as payment of rent. The Landlord shall refund the deposits, free of interest, within [ ] days after the expiry or sooner determination of the tenancy, less any sums lawfully due from the Tenant."

Renewal clause

"If the Tenant gives written notice not less than [ ] months before expiry and is not in breach, the Landlord shall grant a further term of [ ] years at a rent to be agreed, which shall not exceed [ ]% above the rent payable in the last month of the current term."

Permitted use clause (factory version)

"The Tenant shall use the premises only as a [light industrial factory for the manufacture of ____ and ancillary office and storage] and shall at its own cost obtain and maintain every licence and approval required for its business at the premises."

What does a factory or warehouse tenancy agreement add?

A residential template from the internet usually stops at furniture, air conditioners and pets. An industrial tenancy carries much bigger risks, so the template needs extra clauses:

1. Permitted use and approvals. Tie the use to what the land title and the council allow, and say who obtains the business licence. A tenant who cannot license its process at the premises has a factory it cannot run.
2. Power supply. Record the existing supply in amperes or kVA and who pays for any upgrade. Check the figure against the TNB bill, not the advert. FactoryHub's factory power calculator helps you size what your machines need.
3. Floor loading and racking. State the design floor load if known and make the tenant responsible for damage from overloading.
4. Fire certificate and fire systems. Say who holds and renews the Bomba fire certificate where one is required, and who maintains sprinklers, hose reels and alarms.
5. Alterations and reinstatement. Mezzanines, partitions, cranes and new openings need landlord consent and often council approval. Agree in writing what must be removed at the end.
6. Service tax. From 1 January 2026 the service tax on rental or leasing services was cut from 8% to 6%, and the annual sales limit under which MSME tenants are exempt rose from RM1 million to RM1.5 million (Ministry of Finance). The agreement should say whether the rent includes or excludes it.
7. Insurance. Landlord insures the building; tenant insures its stock, machinery and public liability. See who insures what between landlord and tenant for the clause wording.

How long is a factory tenancy, and what rent is normal?

Look at real registered deals rather than adverts. In JPPH-registered transactions for Selangor and Kuala Lumpur, there were 2,487 registered factory tenancies over 24 months, with a median rent of RM1.54 psf/month, typically RM1.02 psf/month to RM2.24 psf/month, and a typical term of 24 months. Terrace factory rent had a median of RM3,700 a month for about 2,000 sq ft (Selangor & Kuala Lumpur transaction prices and rents). These are the registered records available so far, not every tenancy in the market.

A 2 or 3 year term with an option to renew keeps the agreement on the tenancy side of the three-year line. If you need longer security for a heavy fit-out, a registered lease in Form 15A is the proper route.

How do you sign and stamp a tenancy agreement, and what does it cost?

Step by step

1. Agree the key terms in a letter of offer, then fill in the template schedule.
2. Both parties sign, with witnesses, and companies affix their stamp if their constitution requires it.
3. Stamp the agreement within 30 days of signing (LHDN). Since 1 January 2026, tenancy agreements are in Phase 1 of LHDN's Stamp Duty Self-Assessment System: you need a tax identification number, log in to MyTax, upload the agreement, fill in the form, self-assess the duty, pay, and keep records for 7 years (LHDN STSDS). Our MyTax stamping walkthrough shows the screens.
4. Keep the stamped original with your title search, inventory and photographs.

Stamp duty rates

Source: Finance Act 2024, section 27, amending item 49 of the Stamp Act 1949.

Worked example at the registered terrace factory median: RM3,700 a month is RM44,400 a year, which is 178 units of RM250 (rounding the part unit up). A 2 year term costs 178 x RM3 = RM534 in stamp duty. Try your own figures in the tenancy stamp duty calculator.

Late stamping costs RM50 or 10% of the unpaid duty, whichever is higher, if stamped within 3 months after the deadline, and RM100 or 20% after that (LHDN). The person liable for duty is set out in the Third Schedule of the Stamp Act 1949 (LHDN), and your agreement can say how the cost is shared.

What are the common mistakes with a free template?

• Using a condo template for a factory, so power, floor loading, fire safety and reinstatement are not covered at all.
• Leaving the permitted use blank, then finding the council will not license the tenant's process.
• Signing a 5 or 6 year "tenancy" without a registered lease, believing it gives the same protection.
• Forgetting the service tax line, which leads to an argument on the first invoice.
• Not checking that the person signing is the registered owner or holds a valid power of attorney.
• Missing the 30-day stamping deadline.

Frequently Asked Questions

What is a standard tenancy agreement?

It is a common term for a ready-made agreement with the usual clauses: parties, premises, term, rent, deposits, each side's obligations, renewal, termination and execution. In Malaysia there is no official government version in force, so any "standard" template is a private document. A Standard Tenancy Agreement is being discussed under the proposed Residential Tenancy Act, which covers homes only.

Can I draft my own tenancy agreement in Malaysia?

Yes. The National Land Code allows a tenancy of up to three years to be made in any written form, or even orally. Drafting it yourself is legal, but for a factory or warehouse the sums and risks are large, so have a lawyer review it before signing.

Where can I download a tenancy agreement?

Many templates circulate online, but none is an official form. Use any template only as a starting point, check it against the clause checklist in this guide, and add the industrial clauses on use, power, fire safety, alterations and service tax if the premises is a factory or warehouse.

How do I stamp a tenancy agreement in Malaysia in 2026?

Log in to MyTax and use e-Duti Setem under the Stamp Duty Self-Assessment System, which covers tenancy agreements from 1 January 2026. Upload the signed agreement, self-assess the duty at RM1, RM3, RM5 or RM7 per RM250 of annual rent depending on the term, and pay within 30 days of signing.

Is a residential template good enough for a factory or warehouse?

Usually not. A house template does not deal with permitted industrial use, power supply, floor loading, the fire certificate, reinstatement of alterations or service tax on rent. These are the points that cause the most costly disputes in industrial tenancies.

Does a tenancy agreement longer than 3 years need to be registered?

A letting of more than three years is a lease under section 221 of the National Land Code and is made in Form 15A for registration at the land office. A tenancy of three years or less needs no registration, but it may not bind a later buyer or chargee unless it is protected by an endorsement on the title.

Is there SST on factory or warehouse rent?

Service tax applies to rental or leasing of non-residential property by a registered landlord. The rate was reduced from 8% to 6% from 1 January 2026, and MSME tenants with annual sales up to RM1.5 million are exempt. State in the agreement whether the rent includes or excludes it.

FactoryHub is dedicated to helping every client find the right factory or warehouse. To compare factories for rent, or to check a tenancy before you sign, call Peter Tan (REN 12771) at 016-666 6872 or Jason Low (PEA 1478) at 012-288 1834. Browse factories for rent in Klang.