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Dealing with Construction Permits in

Malaysia

Below is a detailed summary of the procedures, time and costs to build a warehouse in Malaysia. This includes obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016. Read the methodology.

Compare Malaysia to 189 other economies.

  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain technical conditions from the Water Authority SYABAS

    Agency: Water Authority SYABAS

    BuildCo will visit the Water Authority SYABAS to obtain the technical conditions for the design of the water design plans, so that they are in compliance with regulations.
    2 days no charge
    * 2

    Obtain technical conditions from Tenaga Nasional Berhad (TNB)

    Agency: Tenaga Nasional Berhad (TNB)

    BuildCo will visit the Tenaga Nasional Berhad (TNB) to obtain the technical conditions for the design of the electrical design to be in compliance with regulations.
    2 days no charge
    3

    Submit and obtain development approval through OSC

    Agency: Kuala Lumpur City Hall’s One Stop Centre (OSC)

    Builders can now apply for construction permits through OSC 1Submission (single entry). OSC will then refer the submissions to the Planning Department, Building Department, Engineering Department, Fire and Rescue Department, Sewerage Agency and Water Agency.

    OSC will issue the development approval (planning approvals, building approvals, engineering approvals, fire safety plan endorsements, water approvals, and sewerage works approvals) to the builder. While all forms can be obtained online at jprb.dbkl.gov.my/Pentadbir/MuatTurunBorangOSC/MTBorang11.asp, the filing must still be done in person at the OSC.

    BuildCo will submit and obtain approval through OSC for the following documents:
    • Planning plan
    • Building plan
    • Engineering plan (earthwork, road & drainage plan, road excavation permit, and street lighting plan)
    • Landscape plan
    • Water supply plan
    • Sewerage plan
    • Infrastructure communication plan
    • Fire safety plan

    The estimated processing fees are as follows:
    1. Planning plan = MYR 480
    2. Building plan = MYR 1,300
    3. Engineering plan = MYR 100
    4. Water supply plan = MYR 1,300
    5. Sewerage planning and design approval = MYR 420 (MYR 150 for sewerage planning approval; MYR 150 for sewerage design approval and MYR 120 for notification to start work)
    30 days MYR 3,600
    4

    Submit pre-construction notifications to OSC

    Agency: Kuala Lumpur City Hall’s One Stop Centre (OSC)

    Under the OSC 1Submissions, all notifications are submitted via OSC. OSC will distribute the notifications to relevant agencies:-
    1. Building Department at Kuala Lumpur City Hall
    2. Engineering Department at Kuala Lumpur City Hall
    3. Water Authority SYABAS
    4. Department of Occupational, Safety and Health - submit JKJ 103 Form (Notification in respect of building operation and works of engineering) under s.67 Occupational, Safety and Health Act 1994
    5. Sewerage Certifying Agency (IWK)
    1 day no charge
    5

    Request final utilities inspections through OSC

    Agency: Kuala Lumpur City Hall’s One Stop Centre (OSC)

    Under OSC 1Submission, the builder has to request for joint inspection via OSC. OSC will arrange and coordinate inspections and connections schedule with relevant agencies:

    1. Water inspection = MYR 1000
    2. Sewerage inspection = MYR 600 (Cost for the final inspection - Fee schedule 2 Part II of the Water Services Industry Act of 2006)
    3. Fire safety inspection = MYR 312.5
    1 day MYR 2,163
    6

    Receive road and drainage inspection

    Agency: Engineering Department of DBKL

    Once the road and drainage works have been completed, BuildCo will request the road and drainage clearance letter from the Engineering Department of DBKL. BuildCo must also submit a construction report notification. By signing form G-17, the engineer certifies that all works were carried out according to regulations. Form G-17 is then filed along with Form F (Certificate of Completion and Compliance) via OSC to the Engineering Department.
    1 day no charge
    * 7

    Submit a compliance report to the Sewerage Certifying Agency (IWK) and obtain a sewerage clearance letter

    Agency: Sewerage Certifying Agency (IWK)

    The Principal Submitting Person will issue a compliance report under the self-regulation concept and the Sewerage Certifying Agency (IWK) will issue BuildCo a clearance letter for sewerage.
    1 day no charge
    * 8

    Receive water final inspection and clearance letter

    Agency: Water Authority SYABAS

    The Water Authority (SYABAS) will conduct an on-site inspection of the works and make the connection to the public pipe.
    1 day no charge
    9

    Obtain road and drainage clearance letter

    Agency: Engineering Department of DBKL

    A date for the inspection will be set prior to the issuance of clearance letter for the road and drainage work. The clearance letter will be issued by the Engineering Department independently to OSC after the inspection. The Engineering Department's client charter states that certification papers will be issued within 14 days of application.
    12 days no charge
    * 10

    Obtain sewerage connection

    Agency: Sewerage Certifying Agency (IWK)

    Once the inspection has been carried out, a clearance letter is issued to the Builder. The sewage clearance letter is needed in order for the engineer to issue the Certificate of Completion and Compliance (CCC).
    12 days MYR 18,536
    11

    Submit water test and commissioning (T&C) report and obtain a water clearance letter

    Agency: Water Authority SYABAS

    BuildCo will prepare the water testing and commissioning report and submit it to SYABAS. This document is required to obtain the clearance letter from SYABAS.
    11 days no charge
    12

    Receive fire safety inspection

    Agency: Fire and Rescue Department

    Fire and Rescue Department will carry out fire safety inspection
    1 day no charge
    13

    Obtain fire safety clearance letter

    Agency: Fire and Rescue Department

    Fire and Rescue Department will issue the fire clearance letter to the builder.
    12 days no charge
    14

    Builder’s principal submitting person files the certificate of completion and compliance (CCC)

    Agency: Building Department and Board of Architect via OSC

    BuildCo's Principal Submitting Person (the professional architect or engineer responsible for the project) will issue the Certificate of Completion and Compliance (Form F) enabling the warehouse to be occupied. Two copies of Form F and Forms G1-G21 must be submitted to the Building Control Department at Kuala Lumpur City Hall and the Board of Architects / Board of Engineers via OSC.
    1 day no charge
    15

    Obtain water connection

    Agency: Water Authority SYABAS

    The Water Authority (SYABAS) will issue a clearance letter to BuildCo. SYABAS will subsequently install the water meter after the issuance of the Certificate of Completion and Compliance by the Principal Submitting Person (PSP). This will complete the water connection processs.
    3 days MYR 1,600

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 13.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, in-house engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 1.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Professional in charge of the supervision; Construction company. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 4.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Being a registered architect or engineer. 2.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer. 2.0