Dealing with Construction Permits in Malaysia - Doing Business - World Bank Group Page 1 of 4 Dealing with Construction Permits in Malaysia STANDARDIZED COMPANY 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. Estimated Warehouse Value: MYR 2,000,000 City: Kuala Lumpur 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 185 economies. The most recent round of data collection was completed in June 2012. Read the methodology. More Information Learn more about this economy Compare Malaysia to 184 other economies. Read the methodology for this topic View the rankings No. 1 Procedure Time to Complete Associated Costs Submission to Local Authority through OSC 1 day MYR 480 28 days no charge 14 days no charge 14 days no charge 7 days no charge 7 days MYR 1,514 7 days no charge 7 days MYR 100 7 days no charge 7 days no charge Builders can apply for all the pre-building approvals at the One Stop Center of the Municipality of Kuala Lumpur. However, the builder still needs to visit each of the agencies that provide the pre-approvals in order to obtain confirmation. The One Stop Center charges a processing fee of MYR 480. This process is partly regulated by Federal Territory (Planning) Act, 1982. Agency: Municipality of Kuala Lumpur DBKL 2 Obtain Development Order (DO) from Planning Dept 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 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: Municipality of Kuala Lumpur DBKL 3 Obtain Water Approval Water related approvals are regulated by Water Services Industry Act 2006, section 45 Agency: Water Authority SYABAS *4 Obtain Sewerage Approval Agency: Sewage Services Department IWK *5 Obtain Fire Safety (Arch) Comment Fire safety procedures are regulated by Fire Services Act 1988 and Uniform Building Bylaws 1984 (Chapter 8) Agency: Fire Department *6 Obtain Hoarding & Signboard Approval Agency: Municipality of Kuala Lumpur DBKL *7 Obtain RORO Bin Approval Agency: Municipality of Kuala Lumpur DBKL *8 Obtain Earthwork Approval Agency: Municipality of Kuala Lumpur DBKL *9 Obtain Road and Drainage Approval Agency: Municipality of Kuala Lumpur DBKL * 10 Obtain Landscape Approval http://www.doingbusiness.org/data/exploreeconomies/malaysia/dealing-with-constructio... 6/8/2013 Dealing with Construction Permits in Malaysia - Doing Business - World Bank Group No. Procedure Page 2 of 4 Time to Complete Associated Costs 7 days no charge 7 days no charge 7 days no charge 17 days MYR 1,301 14 days no charge 1 day no charge 1 day no charge 1 day no charge 1 day no charge 1 day no charge 12 days no charge 1 day no charge 1 day no charge 12 days no charge Agency: Municipality of Kuala Lumpur DBKL * 11 Obtain Street Lighting Approval Street lightning regulations are governed by Street, Drainage and Building Act, 1974 Agency: Municipality of Kuala Lumpur DBKL * 12 Obtain Car Park Approval Agency: Municipality of Kuala Lumpur DBKL * 13 Obtain MSMA and SPAH Approvals Agency: Municipality of Kuala Lumpur DBKL 14 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 10.00 per 10 sq. m. or any part thereof (a minimum of MYR 100.00) 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: Municipality of Kuala Lumpur DBKL * 15 Obtain Fire Safety (M&E) Approval Agency: Fire Department * 16 Obtain Permission to start work from Building Department (KMB) Agency: Municipality of Kuala Lumpur DBKL * 17 Notification to start Earthwork from Engineering Department (B FORM) Agency: Municipality of Kuala Lumpur DBKL * 18 Notification to Start Sewerage Work (PDC 6) Agency: Municipality of Kuala Lumpur DBKL * 19 Request sewerage inspection Agency: Sewage Services Department IWK * 20 Sewerage inspection Agency: Sewage Services Department IWK 21 Sewerage report Agency: Sewage Services Department IWK * 22 Request Road & Drainage Clearance 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. 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: Sewage Services Department IWK * 23 Road and Drainage Inspection Agency: Municipality of Kuala Lumpur DBKL 24 Road and Drainage Report http://www.doingbusiness.org/data/exploreeconomies/malaysia/dealing-with-constructio... 6/8/2013 Dealing with Construction Permits in Malaysia - Doing Business - World Bank Group No. Procedure Page 3 of 4 Time to Complete Associated Costs 1 day no charge 1 day no charge 12 days no charge 1 day MYR 111 1 day no charge 12 days no charge 1 day MYR 1,000 1 day no charge 11 days no charge 1 day no charge 1 day no charge 1 day MYR 30 15 days MYR 495 Agency: Municipality of Kuala Lumpur DBKL * 25 Request Sewerage Clearance Agency: Sewage Services Department IWK * 26 Sewerage Inspection Agency: Sewage Services Department IWK 27 Sewerage Report Agency: Sewage Services Department IWK * 28 Request Fire Safety Clearance Agency: Fire Department * 29 Fire Safety Inspection Agency: Fire Department 30 Fire Safety Report Agency: Fire Department * 31 Request Water Clearance Agency: Water Authority SYABAS * 32 Water Inspection Agency: Water Authority SYABAS 33 Water Report Agency: Water Authority SYABAS 34 Deposit G1 - G21 Forms and F Form to OSC The Certificate of Completion has been introduced substituting the Certificate of Fitness for Occupation in 2007. Upon the coming into force (in force from November 27, 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. This person must also certify in Form F that the construction and completion of building was under his supervision 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. Agency: Municipality of Kuala Lumpur DBKL * 35 Deposit G1 - G21 Forms and F Form to Board of Arch / Eng Malaysia A copy of forms G1 G2 should also be submitted to the Order of Architects and Engineers of Malaysia Agency: Board of Architecs and Engineers of Malaysia 36 Obtain Water Connection Agency: Water Authority SYABAS * 37 Obtain Telco Connection Agency: Telekom Malaysia (Telco) * Takes place simultaneously with another procedure. http://www.doingbusiness.org/data/exploreeconomies/malaysia/dealing-with-constructio... 6/8/2013 Dealing with Construction Permits in Malaysia - Doing Business - World Bank Group Page 4 of 4 http://www.doingbusiness.org/data/exploreeconomies/malaysia/dealing-with-constructio... 6/8/2013
