Security Guard Regulations Malaysia | KDN Licence & Akta 27

Quick answer

How is security guarding regulated in Malaysia?

Security guarding is regulated by the Ministry of Home Affairs (MOHA/KDN) under the Private Agencies Act 1971 (Akta 27). A company must hold a KDN licence before it can supply guards. This page summarises the rules in plain English. It is general information, not legal advice.

Law: Private Agencies Act 1971 (Akta 27); armed guarding is additionally covered by the Arms Act 1960.
Regulator: MOHA/KDN, which licenses agencies under section 3 of the Act.
Licence class for guarding: 2(a) Kawalan Keselamatan. Class 2(b) covers private investigation.
Guards: trained under the Certified Security Guard (CSG) programme, screened by PDRM and issued KDN identification.
Uniforms: any uniform, badge or emblem worn by agency staff must first be approved by the Minister.
Before you hire: verify the licence, PIKM membership and insurance.

Last reviewed 20 October 2026.

Legal framework

Akta 27 and related laws

Security guarding in Malaysia is governed by national law and enforced by MOHA/KDN. PIKM (Persatuan Industri Keselamatan Malaysia, the Malaysian Security Industry Association) is the industry body that works with KDN and PDRM on guard training and sets professional benchmarks beyond the statutory minimums.

Private Agencies Act 1971 (Akta 27)

Controls the business of private agencies. It covers licensing, approval of uniforms and badges, and the regulator's powers over licensed agencies.

Arms Act 1960

Regulates firearms. Armed guard deployment needs separate authorisation and is limited to high-risk sites such as banks, jewellery outlets and critical infrastructure.

Personal Data Protection Act 2010

Prohibits unauthorised disclosure of client or visitor information, setting the information-security baseline every agency must follow.

Key provisions of Akta 27, summarised

Licence (section 3): a private agency must hold a licence under section 3. An agency without one is an unlicensed private agency.
Uniforms (section 9): uniforms, badges and emblems worn by a licensed agency's employees must first be approved by the Minister.
Public list: the Act requires the Minister to publish a list of licensed private agencies in the Gazette each March, with additions and deletions as they occur.
Suspension or revocation: a licence can be suspended, cancelled or revoked. An aggrieved agency may appeal to the Minister within 14 days.
Inspection (section 11): the Act gives authorised officers power to enter and search the premises of a licensed agency.

Read the official text on the Laws of Malaysia portal (AGC) or a consolidated copy on CommonLII. The Malay text is authoritative.

KDN security licence

KDN security licence: types and how an agency applies

A KDN security licence (also spelled "license") is issued by MOHA under section 3 of the Private Agencies Act 1971. It is the licence that makes it legal to supply guards.

Licence types

Class 2(a) and class 2(b)

2(a) Kawalan Keselamatan: providing guards and protection for the safety of a person or of property.
2(b) Penyiasatan Persendirian: gathering and giving information about a person's behaviour or activities, i.e. private investigation.

Applying

What MOHA looks at

Applications go to the Ministry of Home Affairs' Security and Public Order Division. MOHA publishes the conditions for new licences, which cover the company structure, minimum paid-up capital, the shareholding, and the background of the shareholders and directors, plus a business plan. The conditions differ between class 2(a) and 2(b) and can change, so confirm the current requirements and fees with MOHA before you apply.

MOHA: application for a new private agency licence →

Guard registration

Requirements for guards

The licence is only the first layer. Individual guards must also be trained, screened and identifiable.

Agency licensing

Why the KDN licence matters

Only a licensed agency is accountable to the regulator, and that accountability is what makes its guards traceable. Our verification checklist shows how to confirm it before you sign.

Guard registration

Certified Security Guard (CSG)

Completion of the CSG programme, run jointly by KDN, PDRM and PIKM since 2014
Official KDN ID card issued to each guard
PDRM background checks and medical screening
Uniforms and insignia approved under Akta 27
Legal work status. KDN has stated that Nepalese nationals are the only foreign nationals allowed to work for licensed security companies (2020 statement; confirm current policy with KDN)

Verify an agency

How to check whether a security company is licensed

Do this for every supplier, ours included. The full seven-point checklist goes further.

Ask for the KDN licence. It should show the company's exact name, the licence number, the class (2(a) for guarding) and the validity period.
Check the name against the Gazette list of licensed private agencies that the Act requires the Minister to publish each March, and confirm with MOHA if the company is missing.
Confirm the company's SSM registration matches the licence name.
Ask for the PIKM membership certificate and the insurance schedule.
Check that guards carry KDN identification and hold valid work status.

Our KDN Licence No. is 02260234. See our credentials, or ask us for the documents.

Residents' associations

Hiring security for a residents' association, JMB or MC

Residents' associations (RA), joint management bodies (JMB) and management corporations (MC) often ask whether they can run guarding themselves or which rules apply.

The rule

Use a MOHA-licensed agency

PIKM has warned that residents' associations should not arbitrarily appoint or train individuals as guards without complying with the regulations and obtaining approval from the relevant authorities. It advises appointing only security companies licensed and approved by the Home Ministry, and not choosing on lowest price alone. Read the report in The Star →

Tender checklist

What to ask each bidder for

Current KDN licence (class 2(a)) and PIKM membership
Written SOPs and site post orders
Insurance, such as public liability and professional indemnity
Proof that each guard has a valid passport, permit and work status
A monthly security operations report for committee meetings
Clear scope: guardhouse, patrols, visitor control, CCTV checks

See our condominium security guard services, residential area security and cost guide. These tender points are consistent with EdgeProp's guidance for JMBs, MCs and RAs.

Compliance & enforcement

Penalties for non-compliance

Client risks

Why licensing matters to you

An unlicensed provider is not accountable to the regulator. Its guards may be unvetted or unregistered, you have no licensing recourse if things go wrong, and your insurer may ask questions, so check your policy. PIKM has also called on KDN to act against companies that employ guards without valid work permits.

Agency accountability

Consequences of breach

Licence suspension, cancellation or revocation under Akta 27
Fines and prosecution for operating without a licence or for serious violations
Inspection of the agency's premises by authorised officers
Serious guard misconduct can be reported to MOHA/KDN. See our conduct standards guide

Enforcement example: a security company director and her husband were fined RM5,000 for running a security business without a KDN licence.

SOPs & guidelines

Security guard SOPs: what a good agency should give you

Akta 27 licenses the agency; it does not write your site's SOPs. These are good-practice items that a reputable agency puts in writing for each post. They are not a statutory list.

Written post orders for each post: scope, access rules, patrol routes and frequency set for the site's risk.
Duty logbook and incident reports in an agreed format.
Escalation chain: who the guard calls first, when the supervisor attends, and how emergencies are reported.
Conduct rules, including no personal phone use or sleeping on post.
Supervision and replacement: how often supervisors check the post and how fast an absent or underperforming guard is replaced.
Reporting to the client, such as a monthly operations report.

For day-to-day duties and powers, see our security guard duties guide. For site-specific plans, see our security guard services.

FAQ

Licensing & compliance, explained

What law governs security guards in Malaysia?

Security guards and agencies are governed by the Private Agencies Act 1971 (Akta 27), enforced by MOHA/KDN. Armed guard deployments are additionally regulated under the Arms Act 1960.

How do I apply for a KDN security licence in Malaysia?

A company applies to the Ministry of Home Affairs under section 3 of the Private Agencies Act 1971, using the application form from MOHA's Security and Public Order Division. MOHA publishes conditions covering the company structure, paid-up capital, shareholders and directors, and a business plan. They differ for class 2(a) guarding and 2(b) investigation and can change, so confirm the current requirements with MOHA. See the MOHA application page.

What is the difference between licence 2(a) and 2(b)?

Class 2(a) Kawalan Keselamatan covers providing guards and protection for a person or for property. Class 2(b) Penyiasatan Persendirian covers gathering and giving information about someone's behaviour or activities, i.e. private investigation.

Do security guards in Malaysia need a licence or registration?

The agency must hold a valid KDN licence. Guards must complete the Certified Security Guard (CSG) programme, carry KDN identification, and pass PDRM background checks.

What is PIKM and why does it matter?

PIKM (Persatuan Industri Keselamatan Malaysia, the Malaysian Security Industry Association) is the industry body that works with KDN and PDRM on guard training, including the CSG programme. PIKM membership is a useful signal of an agency's standing, alongside the KDN licence.

How do I verify whether a security company is licensed by MOHA (KDN)?

Ask for the KDN licence number, class and validity period, plus PIKM membership and insurance documents, and check the name against the Gazette list of licensed agencies. See how to verify a security company.

Can a residents' association hire its own guards directly?

PIKM has warned that residents' associations should not arbitrarily appoint or train individuals as guards without complying with the regulations and obtaining approval from the relevant authorities. The safer route is a MOHA-licensed agency. See the residents' association guide above.

What should a residents' association ask a security company for?

A current KDN licence (class 2(a)) and PIKM membership, written SOPs and post orders, insurance, proof that every guard has valid work status, and a monthly operations report for committee meetings.

What are the uniform requirements for security guards?

Under section 9 of Akta 27, any uniform, badge or emblem worn by a licensed agency's employees must first be approved by the Minister, subject to any other law on uniforms.

Can foreign nationals work as security guards in Malaysia?

KDN stated in 2020 that Nepalese nationals are the only foreign nationals allowed to work for licensed private security companies. Policy can change, so confirm the current position with KDN. See our Nepalese security guards page.

What happens if I hire an unlicensed security company in Malaysia?

The provider is not accountable to the regulator, its guards may be unvetted or unregistered, and your insurer may query the arrangement. Operating without a licence is an offence under Akta 27, and enforcement does happen. Always verify licensing before engagement.

What can I do if a guard is on their phone or not doing their duties?

Raise it with the agency's supervisor and ask for an incident report, using the escalation steps in the contract. A good contract also states how fast an underperforming guard is replaced. Serious misconduct or licensing breaches can be reported to MOHA/KDN.

What security guard services does Optimal Security provide?

Unarmed static guards, Nepalese security guards, commercial and residential security, industrial security and event security, plus licensed private investigation. We do not provide armed guards, bodyguards, escorts or cash-in-transit. See our full services overview.

Security Guard Regulations in Malaysia: KDN Licence and Akta 27