The Letter of Intent for Sponsorship is a crucial preliminary document used in Malaysian business practice when parties wish to formally express their intention to enter into a sponsorship arrangement while maintaining flexibility for detailed negotiations. This document type is particularly valuable in situations where parties need to demonstrate commitment without immediately entering into a binding sponsorship agreement. The letter typically outlines proposed terms, basic obligations, timelines, and any immediately binding provisions such as confidentiality or exclusivity. Under Malaysian law, while most provisions are non-binding, certain elements can be made explicitly binding, making it important to clearly distinguish between binding and non-binding elements. The document serves as a roadmap for further negotiations and helps establish good faith between parties while protecting their interests during the preliminary stages of a sponsorship arrangement.

1. Date and Parties: Full names and addresses of both the sponsor and the sponsorship recipient

2. Introduction: Brief statement identifying the parties and their intent to enter into a sponsorship arrangement

3. Purpose: Clear statement of the sponsorship objective and the general nature of the proposed arrangement

4. Scope of Sponsorship: Overview of what the sponsorship will cover, including basic terms of support (financial, in-kind, or both)

5. Duration: Proposed timeframe for the sponsorship and any key dates or milestones

6. Basic Terms: Fundamental terms including proposed sponsorship amount or nature of support

7. Key Obligations: High-level outline of what each party is expected to provide or perform

8. Non-Binding Nature: Statement clarifying which parts of the letter are non-binding, except for any specific binding terms

9. Next Steps: Timeline and process for moving towards a formal sponsorship agreement

10. Signatures: Space for authorized representatives of both parties to sign