Dealing with Construction Permits in
Malaysia
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page 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 183 economies. The most recent round of data collection for the project was completed in June 2011.
-
Building a warehouse
-
Estimated Warehouse Value:
MYR 2,000,000
- City: Kuala Lumpur
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Request and obtain Planning Permission
Planning permission, which is issued as a Development Order by the Planning Department of the local authority, authorizes development of the land. The permit is valid for 12 months, within which time construction must begin.
The fees for the Planning Approval Application are MYR 40 for every 1,000 square meters for the first 10,000 square meters and MYR 20 for every additional 1,000 square meters for the next 5,000 square meters. Hence, the amount is calculated as follows:
14,000 square meters = 10,000 square meters + 4,000 square meters.
First 10,000 square meters: MYR 40 x 10 = MYR 400 (MYR 40 per 1,000 square meters).
Next 4,000 square meters: MYR 20 x 4 = MYR 80 (MYR 20 per 1,000 square meters).
Total: MYR 400 + MYR 80 = MYR 480.
The processing time for the applications is usually as follows:
- 120 days for large-scale projects (consisting of complicated development plans, buildings of more than five levels, construction involving layout plans for a development area of more than 2 acres, or projects affecting the population density and change of zone area).
- 60 days for mid-scale projects (requiring construction plans of buildings of fewer than five levels, a temporary change in land/building usage involving a land area of fewer than 5,000 square feet or involving changes/additions/alterations made to the available shops/housing units).
- 45 days for small-scale projects (involving suggested additions/changes/alterations to existing bungalow units, two-story units and terrace units, and new bungalow units built in accordance with approved layout plans only).
Agency: Planning Department (Local Authority)
|
50 days
|
MYR 480
|
| 2 |
Request and obtain Building Plan Approval
The approval of the building plans authorizes construction of the building within 12 months from the date of approval. Approval is granted by the Building Department of the local authority.
The filing fees for the application for building plan approval are MYR 10 per 10 square meters or any part thereof (a minimum of MYR 100) under the First Schedule of the Federal Territory of Kuala Lumpur Building By-Laws of 1985. In the case here, involving a 1,300.6 sq. m. built-up area, the application fee would be MYR 1,300.60
Agency: Building Department (Local Authority)
|
90 days
|
MYR 1,301
|
| * 3 |
Request and obtain Approvals for Earthworks and Structural Drawings
No approval is necessary for structural drawings. When the application for Building Plan Approval is submitted, the structural drawings for the site concerned are kept by the Building Department for record purposes only. Approval of earthworks should be obtained from the Public Works Department. The cost of the approval can be ascertained only on submission of the construction drawings. However, as a guide, the department charges MYR 100 per hectare. A month after submission of the application for earthworks approval, the department issues either a formal approval or a comment. However, in practice, the process takes much longer.
Agency: Public Works Department (Local Authority)
|
90 days
|
MYR 100
|
| 4 |
Request and obtain Approval from Planning Department (Local Authority)
BuildCo must obtain several approvals from different departments within the local authority.
Payment of application fees is made upon submission of the preliminary application for planning permission and building plan approval. (For the schedule of fees, see Procedures 1 and 2.)
Agency: Planning Department (Local Authority)
|
90 days
|
no charge
|
| * 5 |
Request and obtain Approval from Engineering Department (Local Authority)
Agency: Engineering Department (Local Authority)
|
90 days
|
no charge
|
| * 6 |
Request and obtain Approval from Town Services Department (Local Authority)
Agency: Town Services Department (Local Authority)
|
90 days
|
no charge
|
| * 7 |
Request and obtain Approval from Building Control Department (Local Authority)
After construction has been completed, a final inspection is conducted by the Building Department to issue its approval. Approval is granted only after all approvals are obtained from the various departments listed in the development order, and is meant to ensure that the construction has been completed in compliance with the approved building plan and the requirements listed in it. The period of 3 to 4 months is just an estimate and might vary with the time it takes the various other departments or agencies to issue their approvals. After that, another 3 to 4 weeks following the final inspection are needed for the final approval from the Building Department to be issued.
The Building Department supervises the construction work stage-by-stage by conducting on-site inspections and reviewing the progress report usually submitted by the architect after each stage.
Agency: Building Control Department (Local Authority)
|
90 days
|
no charge
|
| * 8 |
Request and obtain Approval from the Public Works Department
Agency: Public Works Department (Local Authority)
|
90 days
|
no charge
|
| * 9 |
Receive drainage inspection from the Drainage & Irrigation Department
The inspection takes place after a week’s notice.
Agency: Drainage & Irrigation Department (Local Authority)
|
1 day
|
no charge
|
| * 10 |
Obtain Approval from the Drainage & Irrigation Department
Agency: Drainage & Irrigation Department (Local Authority)
|
90 days
|
no charge
|
| * 11 |
Receive sanitary inspection from the Sewerage Services Department
Agency: Sewage Services Department (Local Authority)
|
1 day
|
no charge
|
| * 12 |
Obtain Approval from the Sewerage Services Department
The time it takes to obtain approval depends on the type of sewerage system used. It takes 3 months to process applications for sewerage systems used for treatment of discharge and a month to process applications for other types of sewerage systems.
Agency: Sewage Services Department (Local Authority)
|
90 days
|
no charge
|
| * 13 |
Receive plumbing inspection from the Water Authority
Agency: Water Authority
|
1 day
|
no charge
|
| * 14 |
Obtain Approval from the Water Authority
Agency: Water Authority
|
90 days
|
no charge
|
| * 15 |
Receive fire inspection from the Fire & Rescue Department
Notification is provided 30 days prior to the date of the actual inspection.
Agency: Fire & Rescue Department
|
1 day
|
no charge
|
| * 16 |
Obtain Approval from the Fire & Rescue Department
Agency: Fire & Rescue Department
|
90 days
|
no charge
|
| * 17 |
Obtain Approval from Telekom Malaysia (Telco)
Agency: Telekom Malaysia (Telco)
|
90 days
|
no charge
|
| * 18 |
Connect to telecommunication services
Agency: Telekom Malaysia (Telco)
|
14 days
|
no charge
|
| * 19 |
Connect to sewerage services
Agency: Sewage Services Department (Local Authority)
|
14 days
|
no charge
|
| * 20 |
Connect to water installations
Agency: Water Authority
|
14 days
|
no charge
|
| * 21 |
Receive final inspection
Agency: Building Department
|
1 day
|
no charge
|
| 22 |
Request and obtain Certificate of Completion
The Certificate of Completion has been introduced substituting the Certificate of Fitness for Occupation in 2007. Upon the coming into force (in force from 27 November 2007) of By-Law 23 of the Building (Federal Territory of Kuala Lumpur)(Amendment) By-Laws 1985, the Certificate of Completion is issued when forms G1 to G21 in respect of stage certifications as set out in the Second Schedule of the By-Laws 1985 have been duly certified and received by the principal submitting person. The principal submitting person must also certify in Form F that he has supervised the erection and completion of building and that to the best of his knowledge and belief the building has been constructed and completed in accordance with the Act, the By-Laws and the approved plans. The time to obtain request and obtain the certificate is about 16 days. For the issuance of a temporary certificate, By-Law 24 of the Federal Territory of Kuala Lumpur Building By-Laws 1985 which states that 10% of the amount of the application fee for the building plan approval is charged is no longer applicable and has been deleted by the P.U. (A) 394/2007:s.15.
Agency: Building Department
|
16 days
|
no charge
|
* Takes place simultaneously with another procedure.