Converting Agricultural Land To Industrial Use In Malaysia: A Step-By-Step Guide

The demand for industrial land is rising in Malaysia as companies look to expand operations. Converting agricultural land to industrial use can increase property value and create jobs. But there’s a process to follow. This guide explains how to convert farmland to commercial use legally in Malaysia.

The Benefits of Transitioning Agricultural Land to Industrial Use

Converting agricultural land to industrial use has several benefits:

  • Increased land value and investment potential. Industrial land is worth more than farmland.
  • Higher rental income. Companies will pay more to lease industrial space.
  • Economic diversification. Industrial development provides jobs beyond agriculture.
  • Infrastructure improvement. New roads, power lines and sewer systems are built.

Factors to Consider Before Converting Farmland

Before applying to change agricultural land to industrial use, consider:

  • Zoning laws. The land must be zoned for industry. If not, apply for rezoning.
  • Environmental impact. Converting farmland may affect wildlife and vegetation. Conduct an environmental impact assessment.
  • Account for land acquisition, infrastructure and construction costs.
  • The site should have transport links and be viable for industry.
  • The land must be large enough to accommodate industrial facilities.

The Step-by-Step Process of Converting Agricultural Land in Malaysia

Follow these steps:

  1. Check zoning. Confirm the land is zoned for industry. If not, apply for rezoning.

  2. Gather documents. Title deed, site plans, location maps and a development proposal.
  3. Apply to the Land Office. Pay the application fee. Approval takes months.
  4. Get new land title. If approved, you’ll receive an updated land title indicating industrial use.
  5. Create a development plan. Include the industry type, jobs created and environmental impact.

Other Important Considerations

Also factor in:

  • Strategic location. Proximity to transport links and infrastructure.
  • Sufficient size. Land must accommodate planned facilities.
  • Detailed development plan. Cover type of industry, jobs created and environment impact.


With proper planning and preparation, agricultural land can be converted to industrial use in Malaysia. Follow zoning laws and get approvals. Conduct an environmental review. The end result is increased property values and economic growth.

Please consult our team for assistance:

[Image source: Photo by Maria Orlova]

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