The Proposal Confirmation Letter is a crucial business document used in Malaysian commercial practice to formalize the acceptance of a business proposal or bid. This document is typically issued after negotiations have concluded and both parties have reached an agreement on the terms and conditions. It serves as a bridge between the initial proposal and the formal contract execution phase, providing clear documentation of the accepted terms and conditions. The letter helps prevent misunderstandings and provides a clear reference point for the agreed scope, pricing, and timeline. Under Malaysian law, while not always legally required, a Proposal Confirmation Letter can be an important piece of evidence in establishing the existence and terms of a business agreement. It's particularly valuable in complex business transactions where multiple proposals or revisions may have been discussed.

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

2. Subject Line: Clear reference to the proposal being confirmed

3. Opening Paragraph: Reference to previous communications and the specific proposal being confirmed

4. Proposal Summary: Brief recap of key elements of the accepted proposal including scope, pricing, and timeline

5. Terms Confirmation: Explicit confirmation of acceptance of main terms and conditions

6. Next Steps: Clear outline of immediate actions and timeline

7. Closing: Professional closing with contact details for further communication