Bonded Storage Warehouse in Shah Alam: What the Building Needs Before Customs Will License It

Written by Jason Low, PEA 1478 · Updated 2026-10-27

Short answer

A bonded storage warehouse in Malaysia is a building licensed by Royal Malaysian Customs under section 65 of the Customs Act 1967, where duty and tax on stored goods are suspended until the goods leave. Before the licence is issued, the building needs a CCC or CFO, one main entrance, fencing, 24-hour monitored alarms and CCTV, and a public warehouse needs at least 20,000 sq ft.

Key Takeaways

A bonded storage warehouse is a licensed warehouse (Gudang Berlesen, GB) under section 65 of the Customs Act 1967. Duty and tax on the goods stored there are suspended until the goods are released for local use or re-exported (Royal Malaysian Customs: Licensed Warehouse).
The building is checked before the licence is issued. Customs lists a CFO, CCC or local council approval, strong and safe construction with only one main entry and exit, fencing, CCTV that Customs officers can access, a 24-hour monitored alarm and an electronic inventory system (JKDM licensing requirements).
A public licensed warehouse (GBA) has a minimum floor area: 20,000 sq ft for non-critical goods and 50,000 sq ft for critical or mixed goods. Stacking does not count toward that area.
A bonded warehouse is not the same as an LMW. A Licensed Manufacturing Warehouse under section 65A is a factory that manufactures export goods, and at least 80% of its production value over 12 months must be exported (JKDM Annual Report 2024).
For a tenant in Shah Alam, the lease matters as much as the licence. Fencing, CCTV and alarm works need the landlord's consent, and the tenancy should run long enough to cover the Customs approval stage.

What is a bonded storage warehouse in Malaysia?

In Malaysia the legal term is licensed warehouse, or gudang berlesen in Malay. Customs describes it as a licence issued under section 65 of the Customs Act 1967 for storing dutiable or taxable goods and other goods approved by the Director General of Customs. The goods sit in the warehouse with duty and tax deferred, and they are only paid when the goods leave the warehouse for the local market. Goods that are re-exported leave without that local payment.

Customs recognises four categories:

Category	Who it is for
Public Licensed Warehouse (GBA)	Stores goods for the public, the usual third-party bonded store
Private Licensed Warehouse (GBP)	Stores critical goods or approved goods owned by the licence holder only
GB PEKEMA	For certified PEKEMA members holding an open Approved Permit from MITI
Port or Airport GBA	Only inside a port or airport outside a Free Zone, for airlines, terminal and port operators and authorities

The JKDM Annual Report 2024 recorded 87 licensed warehouses under the Selangor state office (51 public, 13 private and 23 PEKEMA), with the Subang station listed separately at 68. So the licence is common in this part of Selangor, but each one is tied to a specific approved building.

What does Customs require of the building itself?

This is the part most tenants underestimate. Customs approves premises, not just companies. According to the JKDM licensing page, before a licence is issued the premises must:

be built from strong and safe materials with only one main entry and exit
hold a Certificate of Fitness for Occupation (CFO), Certificate of Completion and Compliance (CCC) or local council approval
have CCTV installed that Customs officers can access
have an alarm system monitored 24 hours
be fenced to a suitable height
not be located near flammable materials, with hazardous goods labelled and segregated
run an electronic inventory control system

For a public warehouse, the licensed area can be a building, fenced open land or both. Pipes, containers, vehicles and heavy machinery may be kept on the open land. Customs also says stacking is allowed but does not count toward the minimum floor area, so a high racked warehouse is measured by its floor, not its cubic space.

Floor area and capital thresholds

Requirement	GBA public	GBP private
Paid-up capital, non-critical goods	RM250,000	RM100,000
Paid-up capital, critical or mixed	RM1,000,000	RM150,000
Goods stored per year, non-critical	No minimum	RM2,000,000
Goods stored per year, critical or mixed	RM3,500,000	RM5,000,000
Minimum floor area	20,000 sq ft (non-critical), 50,000 sq ft (critical or mixed)	Not stated

A GBA applicant must also be a Berhad or Sdn Bhd company with at least 30% bumiputera equity throughout the licence period and at least 30% bumiputera directors or management. The security bond is a bank guarantee: 10% of estimated annual duty for a new GBA and 50% for a new GBP. The licence fee for a private company is RM2,400.

Which Shah Alam warehouses can meet the 20,000 sq ft rule?

The floor area rule rules out most terrace and many semi-detached units straight away. For context, the JPPH-registered tenancies for Shah Alam over 24 months to August 2026 show a median detached factory rent of RM1.50 psf/month, with a median monthly rent of RM12,200 for about 9,170 sq ft (34 tenancies). A public bonded store needs at least twice that median floor area, so in practice the search is among the larger detached warehouses and logistics buildings. You can see the full set of registered prices and rents on FactoryHub's Shah Alam transaction prices and rents.

When I shortlist buildings for a bonded use in Shah Alam, I look at the larger stock in places such as Shah Alam U10 logistics park, HICOM Glenmarie and Seksyen 32, and I check each one against the Customs list before the client spends money on plans. Current units are on the Shah Alam warehouse for rent and detached factory for rent pages.

What should I check on a site visit?

These are the questions I ask on a viewing when a client says the building must become a licensed warehouse:

Is there a CCC or CFO for the whole building, including any extension? An unapproved mezzanine or rear canopy can hold up the licence because Customs needs the approved building.
Can the site work with one main entrance? A warehouse with two gates onto different roads may need one gate closed or controlled.
Is the lot in one piece? Customs requires a new application when premises are added on a lot separated by a river or public road, so a split site is a problem from day one.
What is next door? The rule on flammable materials means a neighbour storing solvents or a chemical plant beside the boundary is worth asking about.
Is the perimeter fence complete and high enough, and can CCTV cover every opening?
Is there a clear floor area figure on the approved plan? The 20,000 or 50,000 sq ft test is about floor, so racking height does not help.

LMW or bonded warehouse: which one does my business need?

People often ask what the difference is between an LMW and a bonded warehouse. A licensed warehouse under section 65 is for storage and related handling. Customs lists permitted activities such as warehousing, break bulk, repacking, relabelling, consolidation, entrepot trade and IPC or RDC activities (JKDM list of activities).

A Licensed Manufacturing Warehouse under section 65A is a factory. The JKDM annual report says an LMW should export at least 80% of its production value over 12 months and may sell no more than 20% locally. Its licence conditions also say only one entity may operate inside the LMW premises, changes to the floor plan or building structure need written Customs approval, and the premises must have 24-hour security with guards, CCTV and alarms (LMW licence conditions). That one-entity rule matters if you planned to share a building with a sister company.

What should the lease say?

A bonded use changes a normal warehouse tenancy in a few ways:

Approval timing. Customs gives policy approval for 6 months, or a reasonable period of up to 12 months, and issues the licence once every condition is met. A tenant should not be locked into a long rent before the building is confirmed workable.
Works consent. Fencing, CCTV, alarm links and gate changes are alterations, so the landlord's written consent belongs in the agreement.
Relocation. A move to another state, or adding a separated lot, means a fresh application, so the term should match the business plan.
Stamp duty. The tenancy is stamped like any other; FactoryHub's tenancy stamp duty calculator gives the figure.

For a wider view of warehouse options, see the warehouse property page and the Shah Alam area page.

If you need a Shah Alam warehouse that can pass a Customs licence check, WhatsApp Jason Low, Probationary Estate Agent PEA 1478 with CID Realtors, on +60 12-288 1834.

Questions people ask

01What does it mean to have a bonded warehouse?+

It means Royal Malaysian Customs has licensed your premises under section 65 of the Customs Act 1967 to hold dutiable goods with duty and tax suspended. You pay when goods are released for local use, and re-exported goods leave without that local payment. The licence is tied to the approved building.

02What is the difference between an LMW and a bonded warehouse?+

A bonded or licensed warehouse under section 65 stores goods and handles them through activities such as break bulk, repacking and consolidation. An LMW under section 65A is a factory that manufactures, and Customs expects at least 80% of its production value over 12 months to be exported.

03Who can own or operate a public bonded warehouse?+

A public licensed warehouse must be run by a Berhad or Sdn Bhd company with at least 30% bumiputera equity and at least 30% bumiputera directors or management. Paid-up capital starts at RM250,000 for non-critical goods and RM1,000,000 for critical or mixed goods.

04How big must a bonded warehouse be in Malaysia?+

For a public licensed warehouse, Customs sets a minimum of 20,000 sq ft for non-critical goods and 50,000 sq ft for critical or mixed goods. Stacking is allowed but does not count toward the floor area.

05Can I rent a warehouse in Shah Alam and turn it into a bonded store?+

Yes, if the building meets the Customs premises list: CCC or CFO, one main entrance, fencing, CCTV, a 24-hour monitored alarm and distance from flammable materials. Get the landlord's written consent for security works and match the lease to the approval period.