Mistakes to Avoid When Buying Industrial Land in Malaysia

This guide highlights common land-buying mistakes for industrial development in Malaysia—from zoning errors to hidden infrastructure costs—so investors can avoid costly setbacks.

Introduction

Malaysia’s industrial property market is growing fast—driven by e-commerce, exports, and government-backed zones like Selangor and Johor. But behind the headlines lies a reality that many first-time buyers overlook: buying industrial land is not as simple as signing an SPA.

From zoning issues to lack of utility access, there are critical mistakes that can derail your development plans. This article explores the top pitfalls to avoid when buying land for industrial development in Malaysia.

1. Ignoring the Land Zoning Status

Mistake: Buying agricultural or residential land without confirming if it's zoned for industrial use.
Impact: Your factory or warehouse project could be blocked by the local authority.

Tip:
Always verify land use through:

Title Deed (Geran) – Check the “Kegunaan Tanah” field.
Local Council Planning Department – Request a zoning confirmation letter.
Online GIS Portals – Use tools like PLANMalaysia or iPlan.

2. Overlooking Road Access and Connectivity

Mistake: Buying cheap land with no direct access to highways or ports.
Impact: Delivery delays, high transport costs, and rejection of logistics clients.

Tip:
Prioritize land that offers:

Proximity to major expressways (e.g., PLUS, LATAR, LEKAS)
Short travel times to airports, ports, or key clients
Wide internal roads to support heavy vehicles

3. Assuming Utility Infrastructure Is Ready

Mistake: Assuming electricity, water, and sewerage are available because nearby land is developed.
Impact: You could spend months and hundreds of thousands building connections.

Tip:

Get written confirmation of infrastructure availability from utility providers.
Check whether the land falls within TNB, SYABAS, and Indah Water service grids.

4. Not Checking Plot Ratio or Building Guidelines

Mistake: Buying land assuming you can maximize the build-up area.
Impact: You may be restricted by local plot ratio limits or setback requirements.

Tip:

Confirm allowable plot ratio, setback, height, and usage density with the local council.
Be aware of heavy vs. light industry regulations, especially in mixed zones.

5. Ignoring Environmental & DOE Requirements

Mistake: Purchasing land that’s in or near a protected zone or flood-prone area.
Impact: You may need costly EIA (Environmental Impact Assessment) reports or be denied approval.

Tip:

For high-impact industries, get advice from DOE (Jabatan Alam Sekitar) early.
Check for:
- Flood zones
- Buffer zones near residential areas
- Restrictions under the National Physical Plan (RFN)

6. Underestimating Legal and Approval Timelines

Mistake: Assuming land conversion or approvals will be granted quickly.
Impact: Project delays, extra holding costs, or cancellation of client deals.

Tip:

Allocate 6 to 12 months for approvals if land is not industrial-zoned.
Work with experienced consultants or lawyers to speed up Tukar Syarat and submission processes.

7. Skipping Due Diligence on Ownership or Encumbrances

Mistake: Buying land that has overlapping claims, is under caveat, or has unpaid quit rent.
Impact: Legal disputes and blocked transactions.

Tip:

Request:
- Land search at Pejabat Tanah
- Quit rent (cukai tanah) status
- Caveats or restrictions on title
- Master layout approval for subdivided land

Conclusion: Buy Smart, Not Just Cheap

Industrial land investment can offer strong returns—but only if you avoid these common traps.
At Terra Group, we help investors source verified industrial plots with proper zoning, access, infrastructure, and growth potential. Don’t let a cheap price tag blind you to hidden risks.

Contact us Call Kenneth 017-380 9993 Or WhatsApp our team directly for the latest availability