How to Choose the Right Factory in Malaysia: Key Factors to Consider

How to Choose the Right Factory in Malaysia: Key Factors to Consider

Choosing the right factory in Malaysia is crucial for business efficiency, cost-effectiveness, and long-term success. Whether you are expanding your operations or setting up a new facility, here are the most important factors to consider before making a decision.

1. Location & Accessibility

The location of your factory affects logistics, transportation costs, and workforce availability. Consider:

• Proximity to major highways, ports, or airports for smooth transportation of goods.
• Nearby suppliers and customers to reduce lead time and shipping costs.
• Availability of public transport for employees’ convenience.

2. Land Size & Build-Up Area

Ensure the factory’s land size and built-up area meet your operational needs. For example:

• If you require large machinery or production lines, you’ll need sufficient space for installation and workflow.
• Warehousing needs should be considered to ensure smooth storage and distribution.
• Future expansion possibilities if your business grows.

3. Power Supply & Infrastructure

Different industries require different power capacities. If your operations involve heavy machinery, welding, or manufacturing processes, check:

• Available power supply (e.g., 1,000 amp or more) to ensure smooth operations.
• Backup power options in case of outages.
• Internet and telecommunication facilities if you rely on technology and automation.

4. Ceiling Height & Structural Design

Ceiling height is essential for industries that require heavy lifting, stacking, or large machinery. A higher ceiling (e.g., 45 ft) allows:

• Installation of cranes or mezzanine floors.
• Better ventilation and cooling efficiency.
• Safe movement of large equipment.

5. Tenure: Freehold vs Leasehold

Factories in Malaysia are either freehold or leasehold:

• Freehold properties offer long-term investment and ownership rights.
• Leasehold properties (e.g., 30-99 years) can be more affordable but require renewal upon expiry.

Consider the tenure based on your business duration and investment plans.

6. Certificate of Fitness (CF) & Compliance

A factory must have a Certificate of Fitness for Occupation (CF), ensuring that the building meets safety and construction standards.

• Verify CF approval to avoid legal issues.
• Check zoning regulations to ensure the factory is permitted for your industry.
• Ensure compliance with fire safety, environmental, and industrial regulations.

7. Price & Investment Cost

Evaluate the factory’s cost, including:

• Selling price or rental rates.
• Maintenance and operational costs such as utilities, security, and waste management.
• Additional renovation or customization expenses for specific business needs.

8. Security & Surrounding Environment

A secure environment is vital for protecting assets and ensuring smooth operations. Look into:

• Gated and guarded industrial areas for enhanced security.
• Flood-free zones to prevent disruptions.
• Surrounding businesses and industries, as they may affect your operations (e.g., pollution, competition).

Final Thoughts

Selecting the right factory requires careful consideration of location, infrastructure, tenure, and costs. Always conduct site visits, review legal documents, and plan for future growth before making a decision.

Need help finding the perfect factory? Contact us for expert guidance in securing the right industrial property for your business.