Pantech Sells 10-Acre Kapar Land for RM31.73m After Planning Permission Delays: Lessons for Land Buyers

Key Takeaways

• Pantech Global is selling about 10.01 acres (435,874 sq ft) of freehold land in Mukim Kapar, Klang, to developer Veltrix Land Sdn Bhd for RM31.73 million in cash, with completion expected by the first quarter of 2027.
• The company bought the land in December 2024 for RM29.79 million, including stamp duty and fees, to build "Klang Factory 2", then dropped the plan because of the long planning and development timeline.
• In August 2025 Pantech said the local authority first indicated a six-month land conversion, but later consultations showed it needed planning permission (Kebenaran Merancang) first, which could stretch the timeline beyond 36 months.
• It bought a separate 4.84-acre freehold site with an industrial title in Klang for RM29 million instead, and plans its new headquarters, factory and warehouse there by 2028.
• The lesson for buyers: land that still needs a conversion or planning approval is cheaper per sq ft, but the time risk can outweigh the saving if you need a factory running on a fixed date.

What happened

On 13 October 2026, Pantech Global Bhd said its wholly owned unit Pantech Steel Industries Sdn Bhd had signed a sale and purchase agreement with Veltrix Land Sdn Bhd to dispose of a parcel of freehold land in Klang, Selangor, for RM31.73 million in cash (The Edge; The Star). The land measures about 10.01 acres, or 435,874 sq ft, and sits in Mukim Kapar.

Pantech, a carbon steel pipe fittings manufacturer, bought the land in December 2024 for RM29.79 million, a figure that includes stamp duty and legal and professional fees. It expects a net pro forma gain of RM769,000. About RM25.31 million of the proceeds will reimburse the purchase of its replacement site and the remaining RM6.42 million goes to working capital. The company expects to complete the sale by the first quarter of 2027.

In its filing, Pantech said the land "was originally intended for the development of Klang Factory 2" and that, following a review of the development plan "and the prolonged timeframe associated with the necessary planning and development requirements for the property", it decided to sell.

Why the plan stalled

The background was set out in August 2025, when Pantech announced it was buying a different site (The Edge, 15 August 2025). The original land, bought with money raised in its IPO, was about 2.5km from its existing Klang operations. According to the company, initial advice from the local authority suggested the land conversion would take six months. Later consultations showed that it first needed to secure Kebenaran Merancang (planning permission), a process that could extend the project timeline to more than 36 months.

Rather than wait, the board bought a 4.84-acre freehold site that already carries an industrial title from Uptown Promenade Sdn Bhd, a unit of Rhong Khen International, for RM29 million. That site is planned as Pantech's new corporate headquarters, production facility and warehouse by 2028.

What the numbers say

On the reported price and area, the Kapar parcel changes hands at roughly RM73 psf of land. The replacement site, at RM29 million for 4.84 acres, works out to roughly RM138 psf of land. The two sites differ in location, size and surroundings, so this is not a like-for-like comparison, but it shows the price gap buyers often see between land that is ready for a factory and land that still has approvals ahead of it.

For context, JPPH-registered transactions in Kapar show a median of RM95 psf of land for industrial land over the 24 months to July 2026, from 79 recorded deals, with a typical deal size of RM6.81 million to RM16.82 million. Detached factories in the same data sit at RM306 psf of land. You can see the full breakdown on our Kapar transaction prices and rents page.

Why it matters for factory owners and buyers

Kapar is one of the busier industrial areas around Klang, north of Klang town and close to Meru and the North Port side of Port Klang. Large owner-occupiers looking for 5 to 10 acres often end up looking at land that is still agricultural or otherwise not yet approved for industrial use, because it is cheaper and comes in bigger parcels.

Pantech's experience shows the risk in that route:

• Time is the real cost. A six-month estimate became a possible 36-month process once planning permission came into the picture. For a manufacturer that needs a new production line by a fixed date, that delay costs more than the land discount saves.
• Early advice is not an approval. Pantech's initial guidance from the local authority turned out to be incomplete. Until you have the approvals in writing, treat any timeline as an estimate.
• Exit is possible, but not guaranteed. Pantech found a developer buyer at a small gain over cost. In a softer market, or for a less attractive parcel, an owner forced to sell could do worse.

Practical next steps if you are buying industrial land

1. Check the title first. Run an official land search to confirm the land use category, express conditions and any restrictions in interest. Land without an industrial category will need a conversion before a factory can be approved.
2. Check the local plan. Find out how the site is zoned in the local plan (Rancangan Tempatan) of the council concerned. If the zoning does not support industry, expect a planning stage before any conversion.
3. Get the sequence in writing. Ask the council and the land office, ideally through a town planner, which approvals are needed and in what order: planning permission, land conversion, building plans and utilities.
4. Make the deal conditional. Where possible, make the sale and purchase agreement conditional on key approvals, with a long-stop date and a refund of deposit if they are not obtained.
5. Price in the time. Compare the discount on unconverted land with the cost of renting a factory, or delaying production, for two to three years.
6. Consider ready industrial land or a built factory. If your deadline is fixed, a titled industrial plot or an existing detached factory may cost more per sq ft but removes most of the approval risk.

Our guides on industrial land conversion and factory approvals in Malaysia walk through each step in more detail.

FAQ

How much is Pantech selling the Kapar land for?

RM31.73 million in cash for about 10.01 acres (435,874 sq ft) of freehold land, which works out to roughly RM73 psf of land on the reported figures.

Why did Pantech give up building on the land?

The company cited the prolonged timeframe of the planning and development requirements. In 2025 it said a conversion first estimated at six months needed planning permission first, which could take more than 36 months.

Who is the buyer?

Veltrix Land Sdn Bhd, a property developer owned by Cheok Chin Hong and Ong Kah Hoe, according to The Edge.

What is Kebenaran Merancang?

It is planning permission from the local authority. For land that is not yet approved for industrial use, it can be required before a land conversion and building plan approval.

What do industrial land deals in Kapar usually cost?

JPPH-registered transactions show a median of RM95 psf of land for industrial land in Kapar over the 24 months to July 2026, based on 79 recorded deals.

FactoryHub is dedicated to helping every client find the right factory or warehouse. If you are weighing land against a ready-built factory in Kapar or elsewhere around Klang, call Peter Tan (REN 12771) at 016-666 6872 or Jason Low (PEA 1478) at 012-288 1834.