By Danial Dzulkifly
KAJANG, Jan 16 — The state government aims to collect at least RM150 million in premiums from legalising unregistered factories over the next three years.
State executive councillor for local government and tourism Dato’ Ng Suee Lim said the target is contingent upon registering over 80 per cent of the 6,690 illegal factories currently operating in Selangor.
He however stressed that the state is committed to finding a win-win solution to help factory owners legalise operations while ensuring compliance with local laws.
“We want these factory operators to come forward and talk to us. Many of them have been operating for decades without proper licence, and we want to help them obtain the necessary permits,” Ng said in a press conference held after the Compliance Programme and Enforcement of Unauthorised Factories in Selangor 2025-2027 (Southern Zone) town hall at Dewan Seri Cempaka here today.
This is the second town hall held by Ng on illegal factories located in the state’s central zone. The first one was held in Shah Alam.
Ng said the state government has introduced a series of incentives to encourage factory operators to legalise their businesses.
Among the initiatives is a 30 per cent discount on premiums for land use conversions at the Land and District Office, and a 30 per cent discount on contributions to the Improvement Service Fund, development charges, and social infrastructure contributions required by local authorities.
Other incentives include nominal land premium payments, special land permits, temporary business licences, and compliance with minimal technical requirements for applications to local authorities.
Ng added that the state government is adopting a carrot-and-stick approach to address the issue, with stricter enforcement measures activated this year targeting illegal factories on government land.
He said non-compliance could lead to land forfeiture.
Ng revealed that this month alone, the state is set to issue 97 Notice 7A under Section 128 of the National Land Code for breaches of conditions by proprietors.
If no action is taken to rectify the land status, the enforcement process will escalate, including the issuance of Notice 7B under Section 129, and subsequently Notice 8A, under Section 130, starting January 1, 2026.
“Usually, when we issue notices, these mysterious owners who have never approached the state will reappear. So again, I implore operators to come and talk to us,” he said.
Notice 7B pertains to forfeiture enforcement action for breaches of conditions, while Notice 8A, once gazetted, results in the forfeiture taking effect.
Currently, only 30 per cent of Selangor’s 6,690 unauthorised factories have been registered.
The legalisation process, which began September 1, 2024, will continue until December 31, 2027, as part of the state’s strategy to register illegal factories.
