Recent comments by Prime Minister Tan Sri Muhyiddin Yassin at a convention that “only the pubs and bars have yet to resume businesses, but I feel maybe if they don’t open at all is a good thing” underscore the increasingly hostile climate to alcoholic beverages in the Southeast Asian country.

Besides political theatrics, some very real challenges face bars around in Malaysia, many of which remain closed under the country’s COVID-19 restrictions.

In Kuala Lumpur the city’s municipal authority, the Dewan Bandaraya Kuala Lumpur (DBKL), suspended the issuance of liquor licenses on June 2.

This suspension was imposed while the federal and local authorities revised liquor guidelines and laws, in parallel with changes to drink driving legislation.

While changes to laws around intoxicated drivers were approved on August 29th in Parliament, DBKL’s on-going liquor license freeze is leading to widespread frustration amongst venue owners and industry associations.

In addition to halting the progress of new businesses that were intending to serve alcohol, many bars, restaurants and nightclubs also have expiring licenses (which typically take around three months to renew).

Rather than extending an amnesty to venues that have expired licenses, DBKL’s enforcement operations have reportedly been stepped up to punish those operating with expired permits.

Beyond the liquor freeze, DBKL has issued restrictions on foreigners from setting up new businesses in 20 different license areas, including restaurants, bistros and cafes.