Malaysia · Music licensing guide
Background Music Licensing in Malaysia: The Essential Guide for Businesses
To play music in a Malaysian business, you need to clear six rights: public performance of the composition, public performance of the sound recording, reproduction of the sound recording, recording and master rights, publishing rights for commercial use, and the performers’ right to be paid. Consumer apps like Spotify cover none of them. Miss one, and your business is not licensed.
Copyright law is simple: you either have permission, or you don’t. Where the music comes from, what you paid for it and which app plays it do not change that. This guide explains which permissions a Malaysian business needs, how enforcement works, and the simplest way to hold all of them.
Who needs a music licence in Malaysia?
Any business where music can be heard by customers, guests or staff. That includes:
Background music for hotels
Lobbies, lifts, restaurants, spas and guest areas.
Background music for resorts
Pool decks, beach clubs and open-air dining.
Background music for retail stores
Single shops, chains and pop-ups.
Background music for shopping malls
Common areas, atriums and car parks.
Background music for restaurants
Fine dining to casual dining.
Background music for cafés
Independent cafés and coffee chains.
Background music for bars and nightclubs
Including karaoke venues, where enforcement is most active.
Background music for gyms
Workout floors, classes and changing rooms.
Background music for spas
Treatment rooms and reception areas.
Background music for medical clinics
Waiting rooms and treatment areas.
Background music for offices
Receptions, workspaces and staff areas.
Background music for banks
Branches, lounges and queuing areas.
Is music licensing enforced in Malaysia?
Yes. Raids, seizures and prosecutions are active, and karaoke venues are a frequent target.
In July 2025, enforcement officers from the Ministry of Domestic Trade and Cost of Living (KPDN) raided a karaoke outlet at Gurney Paragon Mall in Penang after a complaint from MACP. The society said the outlet had kept playing its music without a licence despite repeated warnings. Officers seized 13 items, including televisions, speakers, microphones and amplifiers, worth around RM18,000.
Enforcement is not left to the societies alone. KPDN acts on complaints under the Copyright Act 1987, and equipment can be seized before any case reaches court.
What the law allows, as stated by PPM
Rights owners can also claim the unpaid licence fees, damages and legal costs. Under the Copyright Act 1987, responsibility sits with the business operating the premises, not with the app, the installer or the staff member who chose the playlist. Bars, nightclubs and karaoke venues face the closest scrutiny: see background music for bars and nightclubs in Malaysia.
What’s inside a song?
A song feels like one thing, but it is made of three parts, and each part can belong to someone different.
Think of a song like a birthday cake.
Many people can bake a cake from the same recipe, just as one song can be recorded by many artists. Each recording has its own owner, but the recipe still belongs to whoever wrote it.
To share the cake with your customers, you need a yes from everyone who owns a part of it. If you also make a copy of the cake to keep, by downloading the song or storing it on a device, that copy needs its own yes. One yes is never enough. And in Malaysia, the singers and musicians who performed on the recording are also entitled to be paid each time it is played in public.
What licences does a business need to play music in Malaysia?
Commercial background music in Malaysia engages six rights, and all six are required. Rights 1 to 5 are permission rights: the owner can refuse or set the terms, and using the music without permission is infringement. Right 6 is a right to be paid: the singers and musicians cannot refuse, but they must be paid.
- 1
Public performance of the composition
Permission to play the song itself, the melody and lyrics, where customers or staff can hear it. More on what a composition licence covers in Malaysia.
Owned by songwriters, composers and publishers - 2
Public performance of the sound recording
Permission to play that specific recorded track: the version your customers actually hear.
Owned by record labels and recording owners - 3
Reproduction of the sound recording
Permission to copy the recording: downloading it, caching it in an app, ripping it from a CD or storing it on a USB or media player. Nearly every music system copies files to play them reliably. A copy made without the owner’s permission is an infringement in its own right. See how recording licences work in Malaysia.
Owned by record labels and recording owners - 4
Recording and master rights
Your music supplier must own or hold rights in the master recordings it supplies for commercial use. Without them, the music is pirated.
Held by your music supplier - 5
Publishing rights for commercial use
Your music supplier must also hold the rights in the compositions it supplies. These explain why permission is needed at all, wherever the music file comes from.
Held by your music supplier - 6
Performers’ right to be paid
The singers and musicians who performed on a recording are entitled to be paid whenever it is played in public. Unlike rights 1 to 5, this is not a permission right: performers cannot stop a business playing the recording, but they must be paid. It is collected by Recording Performers Malaysia (RPM), which also represents international performers through agreements with overseas societies, so it applies to most major-label music.
Paid to singers and musicians, collected by RPM
Music licensing in Malaysia, simplified
One song has several owners and performers. Every one must give permission or be paid.
What is your business doing with the music?
Each use needs its own permission.
Who made the music?
Your music supplier must hold rights ④ and ⑤, and the performers must be paid ⑥. Without them, the music is pirated or unpaid.
Six requirements. Miss one, and you’re not licensed.
Five need permission. One needs payment. All six are required.
Can a business use Spotify, YouTube or Apple Music in Malaysia?
No. Consumer streaming services are licensed for personal listening only, and their own terms say so.
Playing a personal subscription in a shop, café, hotel or office falls outside that permission, and it covers none of the six rights above. The same applies to YouTube, Apple Music, Joox, Amazon Music, TIDAL, CDs and downloaded files.
Read the platform-by-platform answers: Spotify, YouTube, Apple Music, Amazon Music and TIDAL, or see using Spotify in a Malaysian business.
Is royalty-free music a safe option?
Royalty-free does not mean free, and it does not mean you own the music. Usually a one-off fee buys a limited set of permissions defined by the seller’s licence. Many libraries license tracks for videos and online content, not for public performance in commercial premises.
Verdict: royalty-free music is only safe if its licence names every use your business makes of it, including public performance in a commercial venue in Malaysia. If it doesn’t, you still need the missing permissions. More on royalty-free music for commercial use in Malaysia.
Why the traditional route leaves gaps
Businesses that license music themselves deal with up to three bodies and still clear, at best, four of the six rights.
MACP licenses performance of the composition. PPM licenses performance of the sound recording and the copying needed for that performance, but only for recordings in its repertoire. RPM collects the performers’ right to be paid, under a separate licence. No collecting society in Malaysia licenses master or publishing rights for commercial use, and none of them supplies the music, so the source must be licensed separately.
Malaysia briefly had a single licensing window: Music Rights Malaysia ran from 2017 until its dissolution in 2020. Since then each body sets its own tariff and licenses independently, so a venue faces separate agreements, invoices and renewal dates. Other providers often leave these licences to the venue: see MUSICVYBE vs Soundtrack Your Brand.
| Licensing it yourself | MUSICVYBE | |
|---|---|---|
| Rights covered | At most 4 of 6 | All 6 |
| Bodies to deal with | Up to three: MACP, PPM and RPM | One supplier |
| Reproduction of the sound recording | PPM licence, limited to its repertoire | Included for every track |
| Music source | Often consumer apps or downloads, licensed for personal use only | Directly licensed commercial catalogue |
| Agreements to manage | Several, each with its own tariff and renewal | One subscription |
| Curation | Do it yourself | Curated playlists by venue and time of day |
MUSICVYBE: all six rights in one licence
MUSICVYBE is a fully licensed background music service for Malaysian businesses. Its catalogue is licensed directly from rights owners, so every right is cleared before the music reaches your venue.
- All six rights for every track, including the performers’ share
- No MACP, PPM or RPM licences needed for the music MUSICVYBE supplies
- Curated playlists by venue type and time of day, updated monthly and seasonally
- Centralised control across one venue or many locations
- A business music system with monitoring and technical support
Trusted in Malaysia by OCBC Bank Malaysia, Nu Sentral Shopping Mall and Parkroyal Penang Resort. See all Malaysia case studies.
Who licenses what in Malaysia
Three collective management organisations license music use in Malaysia. MACP and PPM grant permission: MACP for right 1 and PPM for rights 2 and 3. RPM grants no permission; it collects right 6, the performers’ right to be paid. None licenses master or publishing rights.
| Right | Administered by | MACP licence | PPM licence | MUSICVYBE |
|---|---|---|---|---|
| 1. Public performance of the composition | MACP | Yes | No | Yes |
| 2. Public performance of the sound recording | PPM | No | Yes | Yes |
| 3. Reproduction of the sound recording | PPM, for licensed performance only | No | Yes, within its repertoire | Yes |
| 4. Recording and master rights | Record labels, held by your supplier | No | No | Yes |
| 5. Publishing rights for commercial use | Publishers, held by your supplier | No | No | Yes |
| 6. Performers’ right to be paid | RPM, payment only | No | No | Yes |
Recording Performers Malaysia (RPM) represents the singers and musicians on recordings. Their right is a right to be paid, not a right to refuse: RPM cannot stop a business playing a recording, but it collects payment for the performers when recordings are played in public. Where it applies, it is a further licence and invoice on top of MACP and PPM. For more on the law, see music licensing laws in Malaysia and choosing a music licence for your business. Running venues elsewhere in Asia? See the Singapore, Indonesia and Vietnam background music licensing guides.
Frequently Asked Questions
Do I need a licence to play background music in my Malaysian business?+
Yes. If music can be heard by customers, guests or staff in a commercial space, you need permission for every right that use engages. For most businesses that means six rights: public performance of the composition and of the sound recording, reproduction of the sound recording, the recording and publishing rights your music supplier must hold, and the performers’ right to be paid, collected by RPM.
Can I play Spotify in my shop, café or office in Malaysia?+
No. Spotify’s Malaysian terms grant personal, non-commercial use only, and the same applies to YouTube, Apple Music, Joox and other consumer apps. See Can you use Spotify in a business in Malaysia?
If I hold MACP and PPM licences, am I fully covered?+
No. Together they can cover three of the six rights: public performance of the composition, public performance of the sound recording and, within PPM’s repertoire, the reproduction needed for that performance. Neither licenses master or publishing rights for commercial use, neither supplies licensed music, and RPM still collects the performers’ right to be paid.
What does RPM collect, and does my business need to pay it?+
RPM collects the performers’ right to be paid on behalf of the singers and musicians who performed on recordings. Unlike MACP, PPM and the master and publishing rights holders, performers cannot refuse permission for their recordings to be played, but they are entitled to payment when they are played in public. If your business plays commercial recordings, especially major-label music, RPM’s licence will usually apply in addition to MACP and PPM.
Do I still need MACP, PPM or RPM licences if I use MUSICVYBE?+
Not for the music delivered through MUSICVYBE. The catalogue is directly licensed, with all six rights cleared at source, including the performers’ share. If your venue also plays music from another source, such as live performers or karaoke, that music is assessed on its own terms.
Does music played only to staff need a licence?+
Yes. A workplace is a commercial space, so music played to employees is a public performance, not private listening. It needs the same licences as music played to customers, whether it is in an office, a kitchen, a stockroom or a back-of-house area.
What happens if a business plays music without a licence in Malaysia?+
It risks raids, prosecution and civil claims. In July 2025 KPDN officers seized around RM18,000 of equipment from a Penang karaoke outlet after a complaint from MACP. PPM states that a conviction carries a fine of RM10,000 to RM50,000, up to five years in prison, or both, and that businesses may also have to pay licence fees, damages and legal costs.
Is there still a single music licence in Malaysia?+
No. Music Rights Malaysia issued a single joint licence from 2017, but it was dissolved in 2020. MACP, PPM and RPM now license separately, each with its own tariff. New MyIPO guidelines for collective management organisations were issued in 2025, but in October 2025 the High Court stayed them pending a judicial review brought by MACP.
How much does background music licensing cost in Malaysia?+
It depends on venue type, size and the number of zones or locations. Use the Malaysia music licensing cost calculator, read what background music costs Malaysian businesses, or see MUSICVYBE Malaysia pricing.
Sources
- Scoop, MACP-backed raid sees RM18,000 worth of equipment seized from Penang karaoke outlet (July 2025)
- Public Performance Malaysia, Frequently asked questions
- Free Malaysia Today, Court grants music industry body stay of new copyright guidelines (October 2025)
- Malaysiakini, MACP, PPM and RPM resume licensing with dissolution of MRM
- Spotify Terms of Use (Malaysia)
This guide explains general principles and is not legal advice.
Find out which rights your business is missing
Book a free, no-obligation licensing review for your Malaysian venue.
Related Pages
| Music Licensing in Malaysia | Overview of music licensing in Malaysia |
| Music Licensing for Business | Cross-market guide to licensing background music |
| MACP Licence Malaysia | What a MACP licence covers, and what it doesn’t |
| PPM Licence Malaysia | The recording layer, and the reproduction it reaches |
| MUSICVYBE vs Spotify | Commercial service versus consumer app |