FAQ

FAQs

Welcome to our Frequently Asked Questions section, designed to address common queries about industrial real estate in Malaysia. Whether you’re looking for warehouses, factories, or industrial lands, or just curious about how this industry works, we’re here to provide you with comprehensive information.

These various types of warehouses serve different purposes and accommodate diverse operational requirements for businesses across Malaysia:

  • Detached Warehouses: Standalone structures, not physically connected to any other buildings, offering independent storage space
  • Semi-Detached Warehouses: Partially connected to another similar structure, often sharing a wall or some facilities while maintaining separate operations
  • Automated Storage and Retrieval System (ASRS) Warehouses: Equipped with automated systems for storing and retrieving goods, utilizing technology such as robotic systems, conveyors, and computer-controlled systems for efficient inventory management
  • Multi-level Ramp Up Warehouses: Facilities designed with multiple levels that can be accessed by vehicles via ramps, offering storage and logistical space on different floors
  • Multi-level Warehouses with Cargo Lift: Warehouses featuring multiple levels that are accessible via cargo lifts, enabling efficient movement of goods between floors for storage and logistics purposes

Grade A warehouses typically boast a range of premium features and amenities. Here are some common attributes associated with these top-tier warehouses:

Prime Location: Situated in strategic locations with excellent access to major transportation routes, ports, and industrial areas, facilitating efficient logistics.

Modern Construction: These warehouses are built with high-quality, modern construction materials and techniques, ensuring durability and structural integrity.

Ample Space and Height: Spacious layouts with high ceilings to accommodate various storage needs, including pallet racking and stacking.

Advanced Security Systems: Equipped with state-of-the-art security measures, such as surveillance cameras, access control, and alarm systems to safeguard the premises and inventory.

Efficient Loading Docks: Multiple and well-designed loading bays equipped with docking equipment for seamless loading and unloading of goods.

Climate Control Options: Temperature and humidity control features for storing sensitive goods like pharmaceuticals, electronics, or perishable items.

Modern Amenities: Amenities such as office spaces, break areas, restrooms, and sometimes on-site management offices for convenience and comfort.

Compliance with Regulations: Adherence to safety and regulatory standards to ensure compliance with local building codes and industry regulations.

High Power and Connectivity: Adequate power supply and strong connectivity for technology and operational requirements, often including high-speed internet and advanced electrical systems.

Customizable Features: Flexibility for customization or modification to suit specific tenant needs.

Grade A warehouses are designed to meet the highest industry standards, providing top-notch facilities and services for businesses that demand premium storage and logistics solutions.

In-rack sprinklers are designed for use within warehouse storage rack systems and are an essential component of fire protection systems in warehousing. Here are the primary reasons for their necessity:

Racking Height: In situations where racking reaches a certain height and the ESFR (Early Suppression Fast Response) sprinkler systems are absent, the installation of in-rack sprinklers is a must as per Bomba’s requirements.

Targeted Fire Suppression: In-rack sprinklers are positioned within the storage racks to provide targeted and localized fire suppression. They offer a more precise approach to extinguishing fires by directly addressing the area where a fire might occur.

Protection of Stored Goods: Warehouses typically store various goods, some of which might be sensitive to heat or water. In-rack sprinklers help contain a fire before it spreads, minimizing potential damage to stored inventory or goods.

Compliance with Fire Safety Regulations: Many jurisdictions and fire safety regulations mandate the use of in-rack sprinklers in high-piled storage warehouses. Compliance with these regulations is crucial for ensuring a safe working environment and for adhering to legal requirements.

Enhanced Safety Measures: These sprinkler systems form a crucial part of the overall fire safety measures within warehouses, reducing the risk of fire-related incidents and promoting a safer working environment for employees.

Quick Response to Fires: In-rack sprinklers react rapidly in the event of a fire, helping to control or suppress the fire before it escalates. This swift response is essential in preventing extensive damage or loss.

Limiting Spread of Fire: By containing the fire at its source, in-rack sprinklers help prevent the spread of flames to other areas of the warehouse, potentially averting a more significant catastrophe.

The CCC (Certificate of Completion and Compliance) or CF (Certificate of Fitness for Occupation) are legal documents often required by local authorities in Malaysia to certify that a building complies with safety and building standards before it can be occupied.

 

In general, the absence of a CCC/CF might pose legal and safety concerns, potentially affecting the ability to legally rent or tenant a warehouse. These certificates demonstrate that the building is safe and suitable for occupation, ensuring compliance with local regulations.

 

However, in certain cases, especially during the construction phase or if the property is awaiting certification, there might be temporary allowances or specific circumstances where occupancy could be negotiated. This is typically a risk, and it’s good to address these issues before renting or tenancy to avoid legal or safety complications.

 

While some companies might not be hindered by leasing a building without a CF, they may need to pay a higher premium for insurance coverage.

Common ceiling heights in warehouses can vary based on the type of warehouse and its intended use. However, typical ceiling heights in warehouses range from 25 feet (7.6 meters) to 40 feet (12.2 meters).

These heights allow for efficient storage and stacking of goods, as well as accommodating various industrial equipment, like forklifts, and facilitating the movement of goods and materials within the warehouse space.

Specific industries or logistics requirements might demand higher or lower ceiling heights. For instance, factories that are used for manufacturing might have lower ceilings compared to facilities that handle larger items or require extensive vertical storage.

Automated Storage and Retrieval Systems (ASRS) offer several benefits in warehouse operations:

Optimized Space Utilization: ASRS maximizes vertical space by efficiently storing and retrieving items. This technology allows for higher storage density, making the most of available space.

Increased Accuracy and Efficiency: ASRS systems are automated, reducing human error in inventory management and order fulfillment. This results in higher accuracy and faster retrieval times.

Enhanced Inventory Management: With precise tracking and organization, ASRS systems enable better inventory control. This reduces stock discrepancies and enhances overall inventory management.

Improved Safety: ASRS reduces the need for manual handling of items, minimizing potential safety risks associated with human interaction in high-rack storage areas.

Cost Savings: Although initial implementation can be expensive, in the long term, ASRS systems often reduce operational costs by optimizing space, minimizing labor requirements, and improving overall efficiency.

Increased Productivity: The automation of storage and retrieval processes streamlines operations, leading to faster handling of orders and quicker access to inventory.

Adaptability and Scalability: ASRS systems can be tailored to fit specific warehouse needs and can be expanded or adjusted to accommodate changing inventory demands.

Environmentally Friendly: The efficient use of space and resources by ASRS systems can contribute to a more environmentally friendly operation by reducing the overall footprint required for storage.

A Free Trade Zone, is a designated area that operates under specific economic regulations with the aim of stimulating economic development, promoting international trade, attracting investment, and creating employment opportunities. They play a significant role in boosting a country’s economy by providing an environment conducive to business growth and global trade. Key features include:

Customs Benefits: One of the primary advantages is the relaxation or exemption from certain customs duties and taxes on imported raw materials, components, or finished goods within the zone.

Trade Liberalization: Free Zones often offer more relaxed trade policies, making it easier to import, export, and re-export goods without many of the typical trade barriers or bureaucratic hurdles.

Foreign Ownership and Investment: In many Free Zones, foreign investors are permitted to own 100% of a company, making it an attractive location for international businesses looking to establish a presence in the country.

Business Incentives: Often, Free Zones offer various business incentives such as reduced taxes, streamlined administrative procedures, and infrastructure support to encourage economic growth and development.

Specialized Activities: Some Free Zones are specialized for particular industries or activities, such as technology, manufacturing, or logistics, fostering an environment conducive to those specific sectors.

 

It’s relatively common to encounter “green” office buildings across Malaysia, in contrast to green initiatives within industrial properties. Real estate agents also seldom receive requests from potential tenants specifically seeking eco-friendly warehouses.

Nonetheless, there’s a noticeable rise in green certifications for industrial developments. As reported by the local green development authority – the Green Building Index (GBI) – as of June 30, 2022, out of 619 buildings, 23 are new and 4 are existing industrial buildings that have obtained GBI certification. This count excludes other certifications, such as Green Real Estate (GreenRE) and Leadership in Energy and Environmental Design (LEED).

One developer actively participating in the national mission to reduce carbon emissions by 2030 is SDPLOG (a collaboration between Sime Darby Property and LOGOS Property). They’ve introduced the E-Metro Logistics Park, an environmentally friendly logistics park located in Bandar Bukit Raja 2, spanning across a 177-acre area.

The time it takes to build a warehouse in Malaysia can vary significantly based on the size of the warehouse, its complexity, design, required permits and approvals, availability of construction materials and labor, weather conditions, the efficiency of the construction team, and any unforeseen delays.

Typically, the construction of a warehouse can span around 10 months, though smaller warehouses might be completed in a shorter period. From initial planning to obtaining the Certificate of Completion and Compliance (CCC), the entire process may extend to approximately 18-24 months.

Areas include the Klang Valley (Kuala Lumpur / Selangor), Penang, Johor, and key strategic locations near ports like Port Klang (Northport, Westport / Pulau Indah) and Penang Port. These areas are known for their connectivity, infrastructure, and proximity to major transportation hubs.

Yes, there are zoning and land use regulations that must be considered when setting up industrial facilities in Malaysia. It’s important to ensure compliance with local laws and regulations. Refer to https://www.mida.gov.my/invest-in-malaysia/setting-up-business/ for more information

Tenancy / lease terms vary based on the type of property and agreements with landlords. Generally, tenancy terms range from 1 – 3 years, and lease terms are for 5 years and above, but this can be negotiated based on individual circumstances.

The typical floor loading for a warehouse is between 2- 2.5 ton/m². Some warehouses designed for heavy usage can cater up to 5 ton/m². Factories have a different machinery set up depending on the business nature, hence the load can go beyond 5 ton/m².

There are 3 different industrial zones in Malaysia: light, medium, and heavy. Warehousing can be situated within any of these zones, whereas manufacturing facilities must be positioned in the medium or heavy zones, depending on various other considerations.

Location, accessibility to transportation networks, infrastructure, zoning regulations, property size, facilities, utilities, staff recruitment, proximity to suppliers and customers, as well as the suitability of the property for your specific industrial needs.

The process typically involves property search, negotiations, due diligence, drafting and signing the agreement, payment of necessary fees, and registration. Engaging a real estate agent or legal advisor can facilitate the process.

You can explore our website where we feature a range of industrial properties available for sale or lease. Additionally, you can reach out directly to us who can assist you in finding the most ideal property based on your requirements.

Schedule a site visit with us today!