Frequently Asked Questions

Zoning & Land Use Approval

• Ensure the land is properly zoned as “industrial” under the local council’s development plan (Rancangan Tempatan).

• Land use must match your business type (e.g. light, medium, heavy industry).

• Conversion of land use (from agriculture to industrial, or commercial to industrial) must be done before purchase if the title doesn’t reflect it.

• Check with:

  • State Land Office

  • Local Municipal Council (e.g. MBPJ, DBKL, MBSA)

Foreigners can buy industrial property, BUT subject to:

Minimum investment value:

• Typically RM 1 million or higher, depending on state
• Some states (e.g. Selangor) may set RM 3 million or more for industrial land

EPU (Economic Planning Unit) Approval:

• Required if the transaction involves RM 20 million+, or
• If it results in foreign control of a Malaysian company State Consent under Section 433B of the National Land Code         
•  

• Most industrial properties are leasehold (30–99 years).

• Check remaining tenure—if <60 years, it may affect financing and long-term viability.

• Confirm whether lease is renewable and if premium is payable for extension.

Ensure access to:

• • • Highways, ports, or industrial zones

    • Three-phase electricity, water supply, sewerage, and internet

Some industrial sites may lack proper road access or fire safety compliance—these could block licensing.

Check if your intended activity requires:

• Environmental Impact Assessment (EIA) for hazardous or polluting operations

• Licensing from local authorities (e.g. DBKL, DOE, MITI)

If the land was previously used, verify:

• No contamination (especially in chemical-related industries)

• Proper closure or conversion approvals from past use

RPGT applies to both individuals and companies:

• • Foreign individual: 30% (years 1–5), 10% (year 6+)

  • Foreign company: Same rate as individuals

Strategic planning is needed if land will be flipped or held short-term

If buying a built industrial facility (factory, warehouse):

• Review certificates of completion (CCC/CF)

• Confirm building plans were approved

•  

Foreign companies can finance through local banks, but:

• Loan margin may be limited (typically 50%–70%)

• Need Malaysian-registered entity (e.g. Sdn Bhd)

• MM2H and individuals generally cannot buy industrial land for personal use

Many foreign investors set up a local company (Sdn Bhd) for industrial ownership to ease EPU/state approval and loan access

• Title Search / Grant – Confirms ownership, restrictions, tenure
• Zoning Confirmation Letter – Verifies industrial zoning from local authority
• Land Conversion Approval – If land is not yet gazette as industrial
• SPA (Sale & Purchase Agreement) – Ensure proper terms on zoning, tenure, building use
• State Consent Letter – Approval under National Land Code Section 433B
• EPU Approval (if required) – Approval for transactions involving foreign control or RM 20M+ value
• Tax Clearance & Quit Rent – To confirm no outstanding dues
• Building Approval / CCC – To verify legal structure and occupancy certification

• Zoning & land use – To ensure you’re legally allowed to operate your business
• State consent & EPU approval – Without these, ownership transfer is invalid
• Leasehold tenure – Impacts value, financing, and renewal prospects
• Infrastructure readiness – Critical for operations and expansion
• Legal building approvals – Prevent future fines or demolitions
• Environmental & operational licenses – Especially for manufacturing or logistics
• Ownership structure – Most foreigners buy through a Malaysian-registered Sdn Bhd