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Explainer // Factory Construction Planning

What a Factory Feasibility Check Covers Before You Commit

What is checked before a factory design and budget are fixed: zoning, size allowed, soil, access, power and water.

· 5 min read

Engineer walking an industrial lot boundary with a site plan and tape measure

Check Before You Commit

Most factory budgets don’t go wrong in the steelwork. They go wrong in whatever nobody checked about the site.

That’s the job of a factory feasibility study. Before money goes into detailed design, it confirms that the land, the building you want and the budget all line up.

We’re the factory and warehouse building arm of QDB Ventures Sdn Bhd, a Cheras-based contractor that builds in Selangor. Our feasibility check is the first part of our factory construction planning service, and it reflects how Selangor councils, TNB and Air Selangor actually work.

Below, we go through the five site checks (land, size, soil, access, utilities) and then the budget that comes out of them.

Land and Zoning

Yes, if three things line up: your land title, the council’s zoning and the class of industry you plan to run. We check all three because they’re separate approvals, and the council that covers the site has the final say on planning.

  • Land title: The category should say industry (Industri), not agriculture, and the express condition must allow your type of use.
  • Council zoning: According to FactoryHub’s 2026 Selangor land guide, the local plan under the Town and Country Planning Act 1976 decides what the council will approve. It can refuse a factory on an industrial title if the zone is now planned for other uses.
  • Industry class: Light, medium and heavy industry are not statutory title categories. A guide from klangindustrial.com notes that the class shows up in the title’s express conditions or the local plan, and the two don’t always match.

The stakes are real. FactoryHub’s due diligence checklist explains that a factory on land not approved for industry counts as an unauthorised factory (KTK) in Selangor, and the state’s compliance programme runs to 31 December 2027.

Our guide on building a factory on your land explains zoning in detail.

Building Size the Land Allows

Less than the plot size suggests, and setbacks decide how much less. Setbacks, site coverage and plot ratio limit the footprint and total floor area.

Plot ratio is simply total floor area divided by land area. Industrial Malaysia gives a useful example: on one acre (43,560 sq ft), a 40 ft front setback and 25 ft side setbacks can leave a maximum build-up of only about half an acre. Exact figures vary by council and plot type, so we work from the guideline that applies to your site.

We test your brief against these limits and show how much building fits, with space left for loading, parking and drainage. Run this check before you order equipment, not after.

Soil investigation borehole rig on a vacant industrial site

Soil and Ground

Ground conditions can move the budget more than any other item. Two Selangor examples show why:

  • Soft coastal clay, as around Klang: May need deep piling. A 2003 paper by Gue & Partners on a 1,200-acre site at Bukit Tinggi, Klang, describes alluvial deposits of very soft to firm silty clay reaching 25 to 30 metres deep.
  • Sloping land, as around Rawang: Needs earthworks and drainage.

We explain when soil investigation is needed and what it will show. In practice, a rig drills boreholes and takes samples at regular depths, so engineers know what the ground can carry. According to a 2010 study by Neoh cited by E-Geo Consultant, this work usually costs about 0.2% to 2% of total project cost. That’s a small price next to a piling surprise.

See soil investigation and piling.

Access

Yes, if your largest vehicle can enter the site and turn without blocking the road. We look at:

  • Road widths on the approach
  • Junctions near the site
  • The site entrance
  • Space for container lorries, if you use them

Land lost to setbacks, fire access and parking all compete for the same space, as FactoryHub’s 2026 Selangor land guide points out. Plan lorry turning space early, because squeezing it in later usually means cutting into building area.

Power and Water

Usually yes, but the size of your load decides how much work it takes. We look at the likely TNB supply needs from your equipment, whether a substation might be required, and Air Selangor water and sewerage connections.

TNB’s Electricity Supply Application Handbook (ESAH 3.1) sets the thresholds by maximum demand:

Maximum demandWhat TNB’s handbook says
Up to 100 kVASupply from the existing low-voltage network, subject to a TNB study
Above 100 kVA to 350 kVAUnderground cable from a feeder pillar or substation, after a TNB system study
Above 350 kVA to 1,000 kVADirect cable from a new substation
1,000 kVA and above11 kV supply, with your own transformers and switchgear

Above 350 kVA (about 505A at 400V), a new substation is needed. A 2026 FactoryHub cost guide says that can take 3 to 12 months and that you provide the land and building for it. Know this before you fix your build programme.

On water, Air Selangor treats and distributes water across Selangor, Kuala Lumpur and Putrajaya. Sewerage is run separately by Indah Water Konsortium (IWK). If your process needs a lot of non-drinking water, ask about reclaimed supply: Air Selangor and IWK announced a joint venture in 2021 to pipe treated, non-potable water to industrial users.

What a Feasibility Check Covers

Six items, and each one answers a question you’d otherwise find out the expensive way. Here is the full list.

ItemQuestion answered
ZoningIs my activity allowed here?
Size allowedHow big can I build?
SoilWhat foundations might I need?
AccessCan my vehicles get in and turn?
Power and waterIs supply available, and what will I need?
BudgetWhat should I prepare for?

Find the deal-breakers first

The point of feasibility is to find problems while they are cheap to solve, or before you buy the land.

The Indicative Budget

The check ends with an indicative budget prepared from your brief. It is not a published rate, so treat it as a planning range.

We flag items that are still uncertain so you know where the budget may move:

  • Piling: Hard to price until soil investigation is done.
  • Substation: Needed above 350 kVA, and it takes land, building space and months of lead time.
  • TNB connection charges: A 2026 FactoryHub cost guide, citing TNB’s connection charge book, puts low-voltage charges between RM4,050 (61 to 90 kW) and RM38,250 (721 to 850 kW).
  • Earthworks and drainage: Likely on sloping land.

As the design and engineering progress, the budget firms up into the quotation.

Next Step

Gather what you already have, then send it over. Our guide on what to send your contractor has a checklist, and missing details are fine.

A land title, a rough equipment list and the vehicles you use are a good start. With those, we can run your factory feasibility study and tell you early what fits, what it needs and where the budget may move.

Quick answers

Frequently Asked Questions

Do I need a feasibility check?

It is recommended before the design and budget are fixed, especially if you have not built before, the land is new to you, or the site has slopes, soft ground or tight access.

Does it include soil investigation?

The feasibility check explains when soil investigation is needed and what it will tell you. The fieldwork itself is usually commissioned separately and listed in the responsibilities.

Will I get a budget?

Yes, an indicative budget prepared from your brief, with the uncertain items flagged. It firms up as soil data, design and engineering progress.

Can a feasibility check be done before I buy land?

Yes. Checking a lot before you buy can show whether it suits your factory and flag costly issues such as soft ground or limited access.

From guide to project

Learn more about Factory Construction Planning

A construction plan, engineering requirements and budget based on the site, the intended use and any existing drawings. Every quotation lists inclusions, exclusions and responsibilities.