Understand the key differences between a factory and a warehouse in terms of purpose, design, BOMBA compliance, and business suitability in Malaysia.
Factory vs Warehouse – Know the Difference Before You Buy or Rent
In Malaysia's growing industrial real estate market, terms like factory and warehouse are often used interchangeably—but they serve very different purposes. Understanding the distinction is critical whether you’re buying a unit, planning production operations, or applying for BOMBA and local authority approvals.
This article outlines the key differences in structure, use, legal approval, and investment factors between factories and warehouses in Malaysia.
What is a Factory?
A factory (also known as an "industrial building" or "plant") is a premises where manufacturing, processing, or assembly activities take place. Factories are often customized based on the type of production, machinery, and floor loading requirements.
Common Factory Features:
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Production floor with heavy floor load
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High power supply (3-phase, 150A or more)
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Office and staff quarters within the unit
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Ventilation systems or exhaust fans
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Requires DOSH, MPKJ/MPSJ approvals for certain industries
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BOMBA approval may need sprinkler system (for high-risk)
What is a Warehouse?
A warehouse is primarily used for storage, inventory holding, and distribution. It typically does not include production machinery but focuses on racking layout, storage density, and logistics access.
Common Warehouse Features:
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Wide column spans for racking systems
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High ceilings (30–40 ft)
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Large loading bays, roller shutters
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Container access with wide roads
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Lower floor loading (2–3 ton/m²)
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Fire protection often includes sprinkler system, especially if racked
Structural & Usage Comparison
| Feature | Factory | Warehouse |
|---|---|---|
| Primary Use | Manufacturing / Assembly | Storage / Distribution |
| Power Requirement | High (machinery) | Medium to low |
| Floor Loading | 5–10 ton/m² (depends on machines) | 2–3 ton/m² |
| Design Layout | Custom floor + office combo | Open floor with high roof |
| Fire Safety (BOMBA) | Hose reel or sprinkler (case-by-case) | Sprinkler usually required |
| Suitable For | Food processing, metalwork, plastic molding | Warehousing, logistics, e-commerce |
| Approval Needed | Often requires DOSH, local council licensing | BOMBA + local council |
How to Choose Between a Factory and a Warehouse:
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Need Production? ? Choose a factory
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Only Storage/Distribution? ? Choose a warehouse
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Need Both? ? Look for integrated hybrid units
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Planning Cold Storage or Hazardous Goods? ? Check specialized fire safety and authority requirements
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Want Future Rental Potential? ? Warehouse units often have stronger leasing demand
Common Industrial Zones in Klang Valley Offering Both Options:
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Bukit Raja / Meru / Klang Northport
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Shah Alam Seksyen 15, 26, 33
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Subang Hi-Tech / Taman Perindustrian UEP
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Semenyih / Balakong / Cheras Jaya
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Jenjarom / Banting / Pulau Indah
Work With Terra Group to Find the Right Unit
At Terra Group, we assist clients in:
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Determining BOMBA/fire system needs
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Identifying correct layout for business usage
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Sourcing both new & second-hand factory/warehouse units
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Providing location analysis (KL, Selangor, Johor, Negeri Sembilan)
