Penang Shop Sign Regulations: Key Council Approval Guidelines & Compliance Standards

In Penang, whether your business is located in George Town, Bayan Lepas, Bukit Mertajam, Butterworth, or Balik Pulau, it’s essential for business owners to fully understand the application process and compliance requirements for a Signboard License before installing any shop or office signage.

Any signage displayed outside a commercial premise — including wall-mounted signs, freestanding signs, LED lightboxes, window decals, or hanging signs — must be submitted to the local Municipal Council (Majlis Perbandaran / Majlis Bandaraya) for approval.

Penang’s municipal councils enforce strict standards for shop signage, covering:

• Sign dimensions and placement
• Language and text proportion requirements
• Structural safety and material compliance
• Lighting and illumination safety

Failure to comply with these regulations may result in fines, enforcement notices, mandatory removal, and could even affect business license renewals or new approvals. This guide breaks down the key council approval points, including the sign application process, design standards, common violations, and compliance tips, helping businesses legally, safely, and professionally showcase their brand while enhancing credibility and market presence in Penang.
 

Why Do Businesses in Penang Need a Signboard License?

In Penang, shop signage is considered part of the public visual environment, directly affecting cityscape aesthetics, traffic order, and pedestrian safety. As a result, municipal councils strictly regulate all commercial signs.

Installing a sign without approval may lead to:

• Fines or enforcement notices (Compound): Amounts vary according to local council regulations.
• Mandatory rectification or removal: All associated costs must be borne by the business owner.
• Impact on business license renewals or approvals: Unapproved signage can delay new openings, expansions, or official permits.
• Damage to brand reputation: Non-compliant signs can reduce customer trust and perceived professionalism.

Conclusion: Obtaining a Signboard License is not just a legal requirement — it is a critical step for businesses to operate legally, protect their brand, and maintain a professional image in Penang.
 

Common Signboard Types in Penang That Require a Signboard License

In Penang, businesses must obtain a Signboard License for most types of commercial signage to ensure legal compliance. The following sign types typically require approval:

• Wall-Mounted Signboard

  The most common type of branding display, installed on shop or office walls to showcase your company name, logo, or main services.

• LED Lightbox / Backlit Lettering

  High-visibility signs for nighttime, ideal for restaurants, retail shops, and service businesses, ensuring your brand remains recognizable after dark.

• Pylon / Pole Sign

  Freestanding vertical signs, suitable for malls, shopping complexes, or parking lots, providing long-distance visibility for your brand.

• Hanging / Double-Sided Sign

  Visible from both sides of the street, increasing recognition for pedestrians and passing vehicles.

• Window Sticker / Branding Decal

  Perfect for doors or windows to display brand logos, contact information, or promotional messages.

• Rooftop / High-Level Signage

  Ideal for multi-story buildings or commercial complexes, maximizing brand exposure from a distance.

• Billboard / Outdoor Signage

  Large outdoor advertising boards located along main streets, traffic routes, or commercial zones for maximum brand visibility.

💡 Pro Tip: Even minor updates—such as replacing an old sign, partial modifications, or slight resizing—usually require resubmission to the local municipal council in Penang. Always check approval requirements to avoid fines or removal.
 

Major Local Councils in Penang & Their Signboard Approval Jurisdiction

In Penang, different areas fall under the administration of different local councils, and the Signboard License application process, fees, and approval standards may vary slightly depending on the council.

1️⃣ MBPP – Majlis Bandaraya Pulau Pinang (Penang Island)

Covers George Town, Bayan Lepas, and Balik Pulau, responsible for approving signboards for shops, offices, and commercial premises on the island.
 

2️⃣ MBSP – Majlis Bandaraya Seberang Perai (Seberang Perai / Mainland Penang)

Covers Butterworth, Bukit Mertajam, and Perai, responsible for approving commercial and office signboards in mainland Penang.

💡 Pro Tip: Before submitting your signboard application, always confirm which municipal council your property falls under. This ensures your application documents meet local requirements and helps avoid delays or rejected submissions.
 

Required Documents for Penang Signboard License Application

When applying for a Signboard License in Penang, businesses must prepare the following documents to ensure a smooth approval process:

1️⃣ Basic Documents

• Business Registration Certificate (SSM)
• Copy of Business License
• Tenancy Agreement
• Photos of the Signboard Location
• Owner’s Consent Letter

 

2️⃣ Technical Documents

• Signboard Design Plans (including dimensions, color scheme, fonts, and text/content details)
• Installation Layout / Building Elevation
• Structural Plans (required for large or hanging signboards to ensure safety and compliance)

 

3️⃣ Additional Documents

• Completed & Stamped Application Form
• Electrical or Lighting Certification
• Trademark or Language Certification (DBP / MyIPO)

💡 Pro Tip: Preparing all required documents in advance can significantly speed up the approval process, reduce the risk of rejected applications, and improve your chances of obtaining the Signboard License quickly and efficiently.
 

Penang Signboard Design Guidelines & Key Approval Requirements

When applying for a Signboard License in Penang, the local councils enforce strict design and safety standards. Businesses must comply with the following requirements to ensure their signboards are legal, safe, and approved without delays.

1️⃣ Language Requirements

• The main text must be in Bahasa Malaysia.
• English or Chinese text can be included, but only as supplementary content.
• Incorrect spelling, improper text proportion, or unclear wording may result in application rejection.

 

2️⃣ Size and Placement

• Signboards must not extend beyond the building facade or shop frontage.
• Signboards must not obstruct public walkways or compromise pedestrian safety.
• Dimensions should comply with the proportions and limits set by the Penang local councils.

 

3️⃣ Lighting and Safety Standards

• LED or backlit signboards must not be overly bright or flashing, to prevent distractions for drivers and pedestrians.
• Lighting must not disturb nearby residents or traffic conditions.
• Signboard structures must meet safety standards; large or hanging signboards may require structural drawings and safety certification.

 

Common Penang Signboard Violations & Compliance Tips for Businesses

When applying for a Signboard License in Penang, failure to comply with local council regulations can result in fines, enforcement notices, or even mandatory removal of your signboard. To help businesses avoid these risks, here are the most common violations and practical compliance tips:

🔴 Common Violations

• Installing signboards without prior approval from the local council.
• Signboards that exceed the allowed size or dimensions.
• Insufficient use of Bahasa Malaysia as the main text.
• Actual installation not matching the approved design, including font, size, or location.
• Overly bright or flashing LED lights that affect pedestrian safety or traffic.

 

✅ Compliance Tips for Businesses

• Ensure Bahasa Malaysia is the main language, with English or Chinese as supplementary text.
• Consider local council approval standards during the design phase, including size, placement, and lighting.
• Ensure installation matches the approved design exactly, avoiding last-minute changes.
• Work with a professional signboard company familiar with Penang council procedures to minimize rejections.
• Allow 2–4 weeks for council approval to avoid delays affecting store opening or sign replacement schedules.

💡 Tip: Following these compliance measures not only ensures smooth Signboard License approval but also strengthens your business’s professional image and enhances brand credibility in Penang.
 

Summary: Signboard Compliance in Penang Protects Your Brand

In Penang, following the Signboard License process is not just a legal requirement—it’s a crucial step in protecting your business reputation and brand image. Compliant signboards help you avoid fines, enforcement notices, or mandatory removal, while strengthening your business’s professional credibility and providing a solid foundation for long-term operations.

Penang Signboard License Process Overview:

1. Prepare complete application documents and design plans
2. Submit the application to the relevant local council (MBPP or MBSP)
3. Wait for approval, typically 2–4 weeks
4. Produce and install the signboard only after approval
5. Renew annually to maintain compliance

---

💡 FAQ

1. What happens if a Signboard License expires and is not renewed?

If your license is not renewed on time, the signboard may be considered illegally installed. The local council can issue fines, require removal, and it may also affect your business license renewal.
 

2. Do I need to reapply if I change the sign content but keep the same size?

Yes. Any changes to company name, logo, or contact details require resubmission and approval, even if the signboard dimensions remain unchanged.
 

3. Are there restrictions on signboard colors?

Yes. Signboard colors must harmonize with the cityscape, and flashing or overly bright colors are prohibited. LED brightness must also comply with local council regulations.
 

4. Do indoor signs in malls or shopping centers require a license?

Indoor signs are usually managed by the mall administration. However, it is recommended to obtain local council approval or include the mall’s consent to ensure compliance.
 

5. How can I avoid signboard rejection or delays in approval?

• Ensure the correct language proportion and spelling
• Follow size and placement regulations
• Work with a professional signboard company familiar with local procedures
• Allow sufficient time for council approval before installation

 

Make Your Penang Signboard Legal, Safe & Professional!

🎯 Great Sign Advertising (M) Sdn Bhd offers a full one-stop signboard solution:

• Design · Fabrication · Installation
• Expertise in Penang’s main local councils (MBPP / MBSP) approval processes
• Experience with commercial, office, LED, and premium signboards
• Designs fully compliant with approval standards, reducing the risk of rejections or delays

📩 Contact us today to ensure your Penang signboard is legally approved, professionally installed, and effectively enhances your brand image and market presence!
 

Disclaimer: Information provided is for reference only. We do not bear responsibility for any inaccuracies or consequences arising from its use.