Malaysia

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 189 economies. The most recent round of data collection was completed in June 2014. Read the methodology.

The indicator set on dealing with construction permits will be expanded in Doing Business 2016 to include an index that will measure good practices in construction regulation and assess the quality control and safety mechanisms in place for an economy’s construction permitting system, as well as the quality of the building regulations. This new index will become a component indicator of the ranking on dealing with construction permits. The new data were collected for 170 economies in 2014 and is available under the “Methodology Expansion” tab, below. The data are preliminary and do not have any impact on the Ease of Doing Business 2015 rankings. This data may differ from what will be published in Doing Business 2016.

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  • STANDARDIZED WAREHOUSE

  • Estimated cost of construction: MYR 1,597,225
  • City: Kuala Lumpur
No. Procedure Time to Complete Associated Costs
1 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 400
2. Building plan = MYR 1,300
3. Engineering plan = MYR 100
4. Water supply plan = MYR 1,000
5. Sewerage planning and design approval = MYR 300 (MYR 150 for sewerage planning approval and MYR 150 for sewerage design approval – Fee schedule 2 Part II of the Water Services Industry Act of 2006, Rules of 2006. Development between 11PE and 150PE)
30 days MYR 3,100
2 Submit pre-construction notifications to OSC
Agency: Kuala Lumpur City Hall’s One Stop Centre (OSC)

Under OSC 1Submission, all notifications are submitted via OSC. OSC will then distribute notifications to the relevant agencies such as:
• Building Department (B Form - notification to start building work)
• Engineering Department (B Form - notification to start earthwork)
• Sewerage Certifying Agency (IWK) (PDC 6 Form - notification to start sewerage work)
1 day MYR 120
3 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 inspections via OSC. OSC will arrange and coordinate inspections and connections schedule with relevant agencies:

1. Water inspection = MYR 30.00
2. Sewerage inspection = MYR 300 (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 643
4 Receive road and drainage inspection
Agency: Engineering Department of CHKL

Once the road and drainage works have been completed, BuildCo will request the road and drainage clearance letter from the Engineering Department of CHKL. 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
* 5 Receive sewage final inspection
Agency: Sewerage Certifying Agency (IWK)

The Sewerage Certifying Agency (IWK) will carry out an inspection of the sewerage system and issue BuildCo a clearance letter for sewerage.
1 day no charge
* 6 Receive water final inspection
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
7 Obtain road and drainage clearance letter
Agency: Engineering Department of CHKL

A date for the inspection will be set prior to the issuance of clearance letter for the road and drainage work.
12 days no charge
* 8 Obtain sewage clearance letter and 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 15,972
9 Submit water test and commissioning (T&C) report
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
10 Obtain water clearance letter and water connection
Agency: Water Authority SYABAS

The Water Authority (SYABAS) will issue a clearance letter to BuildCo and install the water meter. This will complete the water connection process.
1 day MYR 1,600
11 Receive fire safety inspection
Agency: Fire and Rescue Department

Fire and Rescue Department will carry out fire safety inspection
1 day no charge
12 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
13 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 Department and to the Board of Architect via OSC.
1 day no charge
  * Takes place simultaneously with another procedure.
Answer
Building code/regulations
Which requirements to obtain a building permit are clearly specified by the building regulations (including the building code), any regulations dealing with construction permits or any accessible website, brochure or pamphlet? List of required documents to submit; Fees to be paid; Required preapprovals by all relevant agencies
Where are the building regulations (including the building code) or any regulations dealing with construction permits accessible? Available for purchase
Quality control before construction
Which entities are required to verify that the architectural plans/drawings for a private construction are in compliance with existing building regulations? Government agency
Who is part of the committee or team that reviews and approves building permit applications in the relevant permit-issuing agency? Licensed architect; Licensed engineer; A civil servant who is not an architect or engineer
Quality control during construction
What type of mandatory inspections (if any) are required by law to be carried out during construction? No inspections are required during construction.
Do legally mandated inspections occur in practice during construction? Inspections are not mandated by law but are commonly done in practice.
Quality control after construction
Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and existing building regulations or is a final report / sign-off required by a supervising engineer? Yes
Do legally mandated final inspections occur in practice? Final inspection is done in practice.
Liability/insurance regimes
Which parties (if any) are held liable by law for structural flaws/problems in the building once it is in usage? Architect or engineer; Professional or Agency in charge of the supervision
Which parties (if any) are required to obtain an insurance policy to cover possible structural flaws/problems in the building once it is in usage? Legislation is silent on this issue.
Professional certification and controls
What are the qualification requirements for the architect or engineer in charge of verifying that the architectural plans/drawings are in compliance with existing building regulations? University degree in architecture or engineering; Be a registered architect or engineer
What are the qualification requirements for the professional who supervises the construction on the ground? University degree in engineering, construction or construction management; Be a registered architect or engineer

  Please send any comments and inputs on the data above to rru@worldbank.org

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