Factory Due Diligence in Selangor: 15 Checks Before You Sign an Offer

An offer is not the place to “sort out the details later.” Make the details conditions of the deal. Before committing to a Selangor factory, build one evidence file covering the land, building, intended operation and post-completion spend. These 15 checks are a working sequence, not a substitute for licensed advisers or confirmation from the relevant authority.

Start with the registered land, not the brochure

Order a current official title search. Match the proprietor, title number, lot, area and tenure against the deal documents. Record every charge, caveat, lease and registered interest. Selangor’s Land and Mines Office describes an official search as an examination or extract of the title register; JKPTG says restrictions, caveats, charges and leases can require consent before transfer. Give the result to your conveyancing lawyer—a seller’s photocopy is not the same control.

Read the land-use category, express conditions and restrictions in interest. An existing factory does not prove your activity complies with the title. JKPTG says the title records conditions and interests affecting the land; its 2024 circular addresses applications to alter a category, express condition or restriction under section 124 of the National Land Code. Ask counsel whether the intended use fits and what consent, conversion or premium risk remains.

Verify the seller’s capacity and consent path. Confirm the registered owner, signatory authority, corporate approvals and every chargee, caveator or State Authority consent. The Selangor Land and Mines Office says a restriction can bar a transfer, charge or lease without approval and lists a current official search, title, tax receipts and chargee consent among relevant documents. Make consents and discharge documents conditions precedent, with lawyer-drafted deadlines and refund mechanics.

Prove that the approved building matches the factory you inspected

Check statutory zoning with the local planning authority. Screen the lot in PLANMalaysia’s i-Plan, then verify it against the gazetted local plan with the PBT. PLANMalaysia says local plans contain maps and written land-use proposals; i-Plan’s disclaimer says gazetted plans and confirmation from PLANMalaysia State or the PBT prevail. Confirm the lot, planning block, industrial class and any operating limits.

Collect planning permission, approved building plans and the CCC or earlier CF. Section 19 of the Town and Country Planning Act 1976 prohibits development without planning permission, subject to limited exceptions. The Local Government Department says the Principal Submitting Person issues the CCC while the PBT retains inspection and enforcement powers. Check approval references, use, floor area, setbacks, parking, loading and completion documents.

Reconcile approved drawings with the as-built factory. Mark every mezzanine, extension, shed, canopy, partition, removed wall, dock, tank and office. MBSA’s current industrial-licensing checklist, for example, requires specified factory partitions, awnings, sheds and additions to have permit or OSC approval and asks for CCC/CF and building permits where applicable. Requirements vary by PBT; have your architect classify and price each discrepancy before the offer becomes unconditional.

Test structure, power, fire and environmental exposure

Commission a building and structural survey. Have a professional engineer inspect the roof, frame, slab, settlement, corrosion, cracks, retaining works and structural alterations. Obtain slab drawings and calculations and test rack, machine and forklift-wheel loads. DOSH says racking floors must withstand base-plate point loads and supporting building members should be proven by structural calculations.

Verify electricity against a load schedule. Give an electrical consultant the machine list, starting method, operating profile, expansion load and power-quality needs. Obtain bills, maximum-demand history, supply voltage, single-line diagrams, switchgear data and transformer records. TNB says supply above 100A is submitted through a registered electrical consultant, may require a substation and depends on load, location and approvals. “Ample power” remains unverified until TNB and a competent professional confirm it.

Audit fire approvals and the installed system. Compare approved drawings with hydrants, sprinklers, pumps, alarms, exits, compartmentation and storage. Under section 29 of the Fire Services Act 1988, BOMBA issues a Fire Certificate for a designated premise only after inspection and satisfaction with its fire equipment or installation. Confirm designation, certificate status and whether your materials, rack height or process require changes through a registered fire consultant and BOMBA.

Screen environmental history and the proposed process. Request former-use records, DOE correspondence, licences, waste, effluent and emission records, spill history and soil or groundwater reports. DOE says activities listed in the 2015 prescribed-activities order require EIA. It also made the Pollution Prevention in Industrial Siting 2025 guideline effective in January 2026, replacing the 2017 guideline. Operator inference: a clean floor does not prove clean ground; let an environmental consultant scope testing.

Walk the route, drains and utility connections

Prove legal and physical heavy-vehicle access. Have counsel confirm registered access and easements, then drive the intended route at operating hours. Measure gates, corners, gradients, overhead obstructions, yard and dock approach. JPJ treats vehicle dimensions, wheelbase, turning circles, axle ratings and gross weight as separate variables. Operator inference: access for one rigid lorry does not prove access for your articulated vehicle; test its envelope and clarify restrictions with the road authority.

Investigate drainage and flood exposure at lot level. Review JPS data and inspect drains, outfalls, platform levels, pumps, tide influence, water marks and incident records. JPS calls its Flood Hazard Map a modelling-based risk tool and publishes planning, drainage and earthworks checklists. Commission a topographic and drainage review against MSMA and PBT/JPS requirements; one river gauge or dry-day visit cannot prove the lot is flood-free.

Confirm every utility at the required capacity. Obtain written evidence for water, sewerage, telecommunications and gas needs. Air Selangor first identifies a suitable tapping source and considers pressure and pipe size before detailed approval. IWK is SPAN’s certifying agency for sewerage-work approvals in Peninsular Malaysia. Ask each provider whether the connection and capacity serve your operation; a nearby pipe or substation is not an entitlement.

Make the offer carry the unresolved risk

Reconcile recurring and inherited liabilities. Obtain current land-tax and assessment receipts, utility statements, maintenance contracts, shared-infrastructure obligations and authority notices. Identify who owns and maintains substations, pumps, private roads, drains, retaining walls and fire systems. Counsel and the accountant should allocate arrears, taxes, apportionments and continuing contracts at completion.

Benchmark the price and attach a due-diligence schedule. NAPIC provides open industrial transaction data, district/state analytics and, subject to availability, e-Data transaction records. Let a registered valuer adjust that evidence for tenure, condition, approvals, usable area and capital works. Schedule every required document, test, consent, defect remedy, price adjustment and exit trigger. If an issue can stop production or lawful occupation, it cannot remain a verbal assurance.

This article is general information, not legal, valuation, engineering, fire-safety, environmental or planning advice. Before signing an offer, appoint appropriately licensed advisers and obtain property-specific confirmation from the land office, PBT, BOMBA, DOE, TNB and other relevant authorities.