Selangor Unauthorised Factory (KTK) Programme Extended to 2027: Notice 7A, 30% Discounts and What Buyers Must Check

Key Takeaways

• Selangor's programme for unauthorised factories (Kilang Tanpa Kebenaran, KTK) has been extended for three years, from 1 September 2024 to 31 December 2027, with a state target of zero KTK by the end of 2027.
• It covers factories built on land whose category or express condition is not industrial, usually agricultural land, and factories running without planning permission. Factories listed in the KTK inventory before 28 August 2019 qualify for the incentives.
• The real deadline is not 2027. Landowners who receive Notice 7A have 12 months from receipt to apply for conversion to industrial use. If they do not, the land can be forfeited to the State.
• Incentives: 30% off the conversion premium for successful applications, the special premium waived, 30% off the development charge and 30% off the Improvement Service Fund (ISF), both payable in instalments.
• Factories outside an industrial zone can get a temporary special permit of up to three years to relocate, at five times the normal penalty. That is a move, not a permanent approval.
• Buyers and tenants: check the land category, express condition, planning permission and CF or CCC before you sign. A cheap factory on agricultural land can carry a forfeiture risk that passes to the new owner.

What the KTK programme is

Selangor launched its first programme to regularise unauthorised factories on 31 July 2006. It was extended seven times and closed on 31 December 2020, after which the State said it would focus on enforcement.

It came back in 2024 under a new name: Program Pematuhan Syarat dan Penguatkuasaan Kilang Tanpa Kebenaran, branded #KitaSelangor KTK Sifar (KIKS). The State Executive Council (MMKN 24/2024) approved a three-year extension running from 1 September 2024 to 31 December 2027, and the details are set out in the Selangor Land and Mines Director's Circular No. 3 of 2025 (Pekeliling PTGS Bil. 3/2025). District and state level committees were set up to speed up approvals.

The name says what changed. This round is "compliance and enforcement": the incentives are there, but the State now serves notices first and forfeits land if owners do nothing.

Which factories it covers

A factory is a KTK when the building or the land use is not approved for industry. In practice that means one or more of these:

• The land category or express condition is wrong. The title says agriculture (pertanian) or building or residential use, but a factory is operating on it. This is the most common case: the 2015 census found about 2,998 factories on 2,523 agricultural lots.
• No planning permission (KM) or building approval. The structure was never approved by the local council (PBT), so there is no CF or CCC.
• Built on State land. Factories encroaching on government land are an enforcement priority, along with factories near rivers.

The programme sorts factories by zoning under the council's Local Plan (Rancangan Tempatan):

	Inside an industrial zone	Outside an industrial zone (Zone B)
Can it be regularised?	Yes: convert the land to industrial and obtain KM and building approval	Usually not where it stands: relocate, or apply to rezone the area to industrial if suitable
Interim measure	Minimum technical conditions, temporary business licence	Temporary special permit of up to 3 years to relocate, at 5x penalty, with council comments and Bomba approval
If the owner does nothing	Notice 7A, then forfeiture	Enforcement, permit cancelled if there are complaints or pollution

Sources: Selangor State Assembly written answer, March 2023 and November 2025.

Eligibility for incentives: factories that were listed in the KTK inventory before 28 August 2019 qualify. Factories outside the inventory are treated as ordinary breaches of land conditions under the National Land Code.

The deadline that matters: Notice 7A and 12 months

The 31 December 2027 date is when the programme ends, not when you can wait until. Under the 2025 circular, landowners listed by the council receive a Notice 7A (Notice to Remedy Breach of Condition) under section 128 of the National Land Code (Act 828). From then:

1. The owner has 12 months from receiving the notice to apply for planning permission and to convert the land's category and express condition to industrial. The State's July 2025 answer gives the window as on or before 31 December 2025, or 12 months from receipt of Notice 7A.
2. If the owner fails to apply, the District Land Office proceeds with forfeiture: the land can be taken and become State land.
3. Councils also issue notices under the Town and Country Planning Act 1976 (Act 172) and compounds for operating without a licence, as Klang's city council described in November 2024.

If you have received a Notice 7A, note the date of receipt and speak to your district land office (Pejabat Daerah dan Tanah) and council now. Do not plan around 2027.

Incentives under the 2024 to 2027 programme

Item	Paid to	Incentive
Conversion premium (premium tambahan)	Land office	30% off, for successful applications
Special premium (premium khas)	Land office	Waived
Development charge (caj pemajuan)	Local council	30% off, payable in instalments until the CCC is issued
Improvement Service Fund (ISF), Street, Drainage and Building Act 1974	Local council	30% off, payable in instalments
Special permit and temporary business licence	Land office and council	Lets the factory handle export permits, Bomba comments and similar matters while approval is pending

Source: Selangor State Assembly written answer, July 2025.

A 30% discount still leaves a real bill. The conversion premium depends on the land's conditions and its valuation by JPPH, and the State had collected about RM194.4 million in additional premiums and special permits from 365 applications by October 2023. Our industrial land conversion guide explains how the premium is worked out and what the process involves.

Where the unauthorised factories are

After cleaning the councils' data, the State counted 6,690 KTK on 5,352 titles or plots of State land as of October 2024:

District	Councils	Factories
Petaling	MBSA 2,503, MBPJ 49, MBSJ 36	2,588
Klang	MBDK 614, MBSA (Klang area) 592	1,206
Hulu Langat	MPKJ 543, MPAJ 535	1,078
Gombak	MPS 1,018	1,018
Kuala Langat	MPKL	297
Kuala Selangor	MPKS	262
Sepang	MPSP	130
Hulu Selangor	MPHS	86
Sabak Bernam	MDSB	25
Total		6,690

By May 2025 the State estimated about 4,170 premises were still not regularised, and said it was still verifying the exact figure with land offices and councils.

Our reading: the Shah Alam council area (MBSA) alone holds about 3,100 of them across Petaling and Klang districts, and Klang district has about 1,200. These are the same areas where we see the most factory enquiries, so buyers in Shah Alam and Port Klang are the ones most likely to meet a KTK unit.

Why applications fail, and why owners do not apply

Between 2006 and October 2023 only 415 applications (7.37% of the inventory) reached the land offices: 356 were approved, 56 rejected and 3 were pending. The State lists these reasons for rejection:

• The building is outside the industrial zone set by the Local Plan.
• The factory's activity breaches Department of Environment (JAS) standards.
• The structure or floor layout does not meet Bomba safety standards.
• No setback or other planning requirements from PLAN Malaysia Selangor.
• Not all co-owners joined the application, including titles where an owner has died without the estate being settled.
• Part of the building sits on someone else's land.

The reasons owners give for not applying at all are just as practical: many co-owners, deceased owners, tenants who cannot get the landowner to cooperate, and the cost of charges and infrastructure upgrades.

If you are buying or renting a factory

Most KTK units do not say so in the advert. A factory on agricultural land is often cheaper, which is exactly why it needs checking. Before you pay a deposit:

Check	Where	What you want to see
Land category and express condition	Official title search (carian rasmi) at the land office	Industry (perusahaan or perindustrian), not agriculture or building
Planning permission and approved plans	Local council	KM for factory use, plans that match the building on site
CF or CCC	Owner, council	A CF or CCC that covers the whole structure, including extensions
Notices	Ask the owner in writing	Any Notice 7A, council notice or compound, and the date received
Zoning in the Local Plan	Council or PLAN Malaysia Selangor	Industrial zone; outside the zone means relocation risk
Licences	Council, Bomba, JAS	Business licence and fire certificate in the operator's name

Why it matters:

• Forfeiture and enforcement follow the land, not the seller. If you buy and the notice period runs out, the problem is yours.
• Financing. Expect the bank to ask for the title, approved plans and CF or CCC. Ask your bank before you commit; see our industrial property loan guide.
• Running the business. Tenants depend on the landowner to apply. The State's own answers note that tenants often cannot get the owner's cooperation, which leaves the tenant exposed to licence and enforcement problems.

Our CCC guide and factory buying guide cover the wider due diligence. If you would rather start from units that are already on industrial titles, tell us your size, power and area through Find Me a Factory, or browse industrial land in Selangor.

If you own a KTK factory

1. Get the facts on paper. Do an official title search, check the Local Plan zoning, and find any Notice 7A, council notice or compound and the date you received it.
2. Inside an industrial zone: apply. Appoint a consultant (planner or architect) to prepare the planning permission application and the land conversion application together. Use the minimum technical conditions the State is offering, and fix Bomba and JAS issues first, since those are common reasons for rejection.
3. Sort out ownership. Bring every co-owner on board, and settle any deceased owner's estate before you apply. Missing co-owners are a stated reason for rejection.
4. Budget for the bill after discounts. Ask the land office for the premium estimate, then apply the 30% discounts and instalment terms. Our Klang agricultural to industrial land guide shows how conversion changes what a lot is worth.
5. Outside an industrial zone: plan the move. Use the temporary special permit period to relocate. We can shortlist factories on industrial titles in the area you need, including units that are not publicly advertised; start with Find Me a Factory.
6. Thinking of selling? A regularised factory with industrial title, KM and CCC is far easier to sell and finance. See how to sell an older factory in Selangor, our sell your factory service, and recent Shah Alam industrial transaction data for pricing.

This article summarises the State's published answers. It is not legal advice: confirm your own case with the district land office, the council and a licensed consultant.

Comparing land beyond this area? Our industrial land for sale in Selangor guide compares price per sq ft by district, zoning checks, loans and buying costs.

FAQ

Has Selangor extended the unauthorised factory (KTK) programme to 2027?

Yes. The State Executive Council (MMKN 24/2024) approved a three-year extension of the Program Pematuhan Syarat dan Penguatkuasaan KTK from 1 September 2024 to 31 December 2027, set out in Pekeliling PTGS Bil. 3/2025.

Can I still apply in 2026?

The programme runs to the end of 2027, but the application window is tied to Notice 7A: the State gives 31 December 2025, or 12 months from the date the landowner receives Notice 7A. If you have received a notice, count 12 months from that date and confirm with your district land office.

What is Notice 7A?

Notice 7A is the Notice to Remedy Breach of Condition under section 128 of the National Land Code (Act 828). It is served on owners of lots listed by the council as breaching land conditions because a factory stands on them. If the owner does not comply, the land can be forfeited and become State land.

What discounts does the programme give?

30% off the conversion premium for successful applications, a waiver of the special premium, 30% off the development charge payable in instalments until the CCC is issued, and 30% off the Improvement Service Fund payable in instalments. A special permit and temporary business licence are also available while approval is pending.

Which factories qualify for the incentives?

Factories listed in the KTK inventory before 28 August 2019. Factories inside an industrial zone can be regularised by converting the land and obtaining approvals. Factories outside an industrial zone can get a temporary special permit of up to three years to relocate, at five times the penalty, or the area may be rezoned if suitable.

Can every factory on agricultural land be converted to industrial?

No. Applications are rejected when the building is outside the industrial zone, breaches environmental or Bomba standards, lacks planning setbacks, sits partly on another lot, or not all co-owners apply.

Is it safe to buy or rent a factory on agricultural land?

Only after checking. Confirm the title category and express condition, planning permission, CF or CCC, zoning and any Notice 7A. Enforcement and forfeiture attach to the land, so a buyer takes over the risk.

Buying or renting, talk to us

FactoryHub is the industrial-only platform of Peter Tan (REN 12771) and Jason Low (PEA 1478), registered with BOVAEP under CID Realtors Sdn Bhd E(1) 1855. We handle both rent and sale, and we co-broke across the whole market, so if the right unit is another agent's listing we will still put it in front of you.

Send us the numbers that decide the shortlist: required amps, built-up area, floor loading, preferred area and target date. We reply with what actually exists, including units that are not advertised publicly. For 800A to 4,000A+ requirements, see high-power factories in Selangor.

Agent	Licence	Mobile / WhatsApp	WeChat
Peter Tan	REN 12771	+6016-666 6872	peterindustrial
Jason Low	PEA 1478	+6012-288 1834	massiveaction