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Procedure to Convert Agricultural Land to Industrial Land in Malaysia (Complete Guide)

 
01

Engage Professional Consultants (Optional but Highly Recommended)

You are required to appoint one of the following qualified professionals to prepare and manage the application documents:
Registered Town Planner (RTP)
Licensed Land Surveyor
Qualified Planning Consultant
These professionals will be responsible for preparing all technical documents, drawings and reports, which significantly improves the approval success rate.
 
 
02

Land Use Zoning Inquiry with Local Authority (PBT)

Before submitting any application, it is essential to confirm:
Whether the land is located within an Industrial Zone; or
If not, whether a rezoning / amendment to the Local Plan is required.
Planning authorities by state:
Johor -> PLANMalaysia@Johor
Selangor -> JPBD Selangor
Kuala Lumpur -> DBKL
This step is critical. If the zoning does not permit industrial use, the application will most likely be rejected regardless of completeness.
 
 
03

Submission to District Land Office (PTD) – Form 12A

(Pursuant to Section 124 of the National Land Code)
 
Required documents include:
Form 12A - Application for Conversion of Land Use
Copy of land title (Title Search)
Latest Qualified Survey Plan (QS)
Industrial Development Proposal
Factory Layout / Site Plan
Environmental Impact Statement (if EIA is required)
 
Procedure to Convert Agricultural Land to Industrial Land in Malaysia (Complete Guide)
Procedure to Convert Agricultural Land to Industrial Land in Malaysia (Complete Guide)
 
04

Inter-Departmental Review Process

The application will be circulated to the following authorities for technical comments:
Local Authority (PBT)
State Industrial Development Authority (e.g. Johor SIJ)
Department of Environment (DOE)
Water Authority (SAJ)
Fire and Rescue Department (Bomba)
Tenaga Nasional Berhad (TNB)
 
Key evaluation aspects include:
Suitability for industrial use
Environmental impact
Traffic and access conditions
Pollution and safety risks
 
 
05

Decision by State Authority / EXCO

Final approval is granted by the State Authority.
 
Upon approval, a Letter of Approval in Principle will be issued, stating:
The premium payable for land conversion
New category of land use: Industrial
Express conditions and compliance requirements
 
 
06

Payment of Premium

 
The premium is calculated based on:
Market value difference between agricultural and industrial land
Total land area
 
Indicative range:
Johor: approximately RM100,000 – RM300,000 per acre, subject to location
Urban areas in Peninsular Malaysia are generally higher
 
 
07

Issuance of Updated Land Title

After full payment, the Land Office will:
Endorse the land use as Industrial
Insert the new express conditions
Issue the updated title to the landowner
At this stage, the agricultural land is officially converted to industrial land.
 
Why Choose Us
 
Expert Solutions
Expert Solutions
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Fast Application Processing
One-Stop, Hassle-Free Experience
One-Stop, Hassle-Free Experience
Contact Information
+6016-763 9499
info@thefactorystory.com.my
 
Andy Lee
Real Estate Negotiator
REN 48918 
Copyright 2026 by The Factory Story | 201903166243 (JM0907205-M) | Johor Bahru (JB) Factory For Sale | Factory For Rent | 新山工厂出租 | 新山工厂出售
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