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The Letter of Refusal is an essential business communication tool used in Malaysian business context to formally decline proposals, applications, or requests. It serves as an official record of the decision and must be drafted in compliance with Malaysian law, particularly the Contracts Act 1950 and relevant business communication regulations. The document should be used when an organization needs to formally communicate a negative decision regarding any business proposition, application, or request. A proper Letter of Refusal includes clear identification of the original request, explicit statement of refusal, professional explanation of reasons, and maintains a courteous tone to preserve business relationships. It may also include alternative suggestions or future considerations where appropriate.

1. Letter Header: Company letterhead, date, reference number, and recipient's complete address

2. Subject Line: Clear indication of the matter being refused

3. Salutation: Formal greeting addressing the recipient appropriately

4. Reference to Original Request: Clear identification of the proposal, application, or request being refused

5. Statement of Refusal: Clear and unambiguous statement of the refusal decision

6. Reason for Refusal: Brief but clear explanation of the main reasons for the refusal

7. Professional Closing: Courteous closing statement maintaining professional relationships

8. Signature Block: Full name, title, and contact information of the authorized person