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
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Contact Information
+6016-763 9499
info@thefactorystory.com.my