Factory Type and Layout

Detached factories offer the most flexibility — no shared walls, independent power, and usually larger land area for heavy vehicle access. Semi-D and cluster factories share party walls but offer lower capital cost. Terrace factories suit light assembly and trading; they are not suited to heavy machinery or high-vibration processes.

Power Supply for Manufacturing

Light assembly and trading: 100–200A. Medium manufacturing with multiple machines: 200–400A. Heavy or continuous production lines, injection moulding, or CNC machining banks: 400A and above. Always verify the actual TNB incoming supply at the meter — stated supply and actual supply sometimes differ on older units.

Zoning and Permitted Use

Industrial-zoned land in Malaysia falls under Light Industry (LI) or Medium Industry (MI) classifications. Your business activity must match the approved industrial scheme for that area. Chemical processing, food manufacturing, and certain heavy industries require additional approvals from MIDA, DOE, or DOSH regardless of the zoning class.

Floor Loading and Structural Clearance

Standard factory slabs handle 20–30 kN/m². Heavy CNC machines, hydraulic presses, or large storage racks may require 40–60 kN/m² or a structural assessment before installation. For lease, confirm floor loading capacity and whether any existing tenants have modified the slab.

Frequently asked questions

What is the difference between a detached, semi-D, and cluster factory?

A detached factory stands alone on its own land title with no shared walls — maximum operational flexibility. A semi-detached (semi-D) factory shares one party wall with an adjacent unit. A cluster factory is part of a group of 4–8 units sharing a common access road and sometimes utilities infrastructure. Each type has different price points and use-case fit.

How do I verify the power supply before renting a factory?

Ask the agent or owner for the TNB account statement showing the tariff category and maximum demand. For vacant units, ask for the incoming supply rating from the sub-station. If in doubt, engage a licensed electrical contractor (wireman) to assess the incoming supply and advise on upgrade feasibility before signing.

What government licences do I need to operate a factory across Malaysia?

You'll need a business registration (SSM), a local authority business licence (Lesen Perniagaan), and depending on your industry, approvals from MIDA (manufacturing licence for RM 2.5M+ capital investment), DOSH (for hazardous machinery or processes), and DOE (for scheduled waste generators). Our agents can advise on the relevant authority for your specific activity.

Last updated: June 2026

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