Purchase of Factory in Malaysia

1. Location

These geographical considerations must be taken into account by prospective buyers. The frequency of shipments to and from the industrial location, DOE rules and regulations that govern the states.
Raw materials are the basic components of finished products. This is one of the most important considerations when selecting a factory location. If your required raw materials are perishable items, then you must tend to locate the plant nearer to the raw material source. Others way, it also reduces the transportation cost which affects hugely the cost of the production.

2. Purchase at a fair price

The best way to evaluate the options is to conduct a cash flow analysis to estimate how much the money you’ll need to cover the factory and how quickly it will break even. This will assist you in weighing the pros and cons of renting versus purchasing. Of course, if you buy the factory, you save money on taxes. However, if rent the factory, the money you pay is not deductible. As a result, owning the factory appears to be a tax-wise decision, as you may depreciate the cost over time through regular depreciation deductions.

3. Space designed and Functionality

The plant must be large enough or have additional space to meet your current production needs. However, it is important for expanding and changing operational processes or renting out your plant in a later year.

4. Availability of Manpower

Local availability of skilled and semi-skilled manpower will add to the efficient running of the plant. Besides, you must study labour relations through turnover rates, absenteeism, and liveliness of trade unionism in a particular area.

5. Availability of Utilities

Electricity, water resources, and etc play a significant part in practically every factory operation. Stable and uninterrupted power is a required magnitude, without fluctuations in voltage and frequency is important for the successful operation of the plant.

6. Ecology & Pollution

Nowadays, there is a great deal of awareness towards the maintenance of natural ecological balance. Social obligations must be met in regards to the impact of pollution from specific types of plants. To achieve these objectives, the nature of the chosen place should ideally have certain advantages. In the event that wastewater disposal is required, you must exercise caution.

7. Local Laws, Regulations and Taxation

You must check prior to the laws related to the pollution control board. In food products, you must check the FPO regulations. In the case of the wood industry, you must maintain the distance from forestry. Taxation is also an important factor as well as State Subject.

In some highly competitive consumer products, its high quantum may turn out to be the negative factor while its relief may become the final deciding factor for some other industry.

When you are ready to purchase a plant, you need to prepare the following information for the loan:

Sdn Bhd is a company consisting of at least 2 persons.

When purchasing a property, the forms required for a Sdn Bhd are different from those for an individual. Below are the required documents.

  • Form 24 & 49
  • Latest Profit & Loss statement
  • Memorandum of Article
  • Company Profile
  • Form 9
  • 12 Months Bank Statement
  • Latest Audited Report

Sole Proprietorship companies will require additional documents as per below:

  • Form A and Form D
  • Name Card

    After a site visit to the plant, a deposit is arranged to secure the plant that the company has decided to purchase. Usually, the plant consultant will arrange for a lawyer or relevant authority to prepare the contract.
  • Prepare the Sales and Purchase Agreement;
  • Sign the agreement and agree on the content of it;
  • Apply to the Electricity and Water Bureau for electricity and water supply;
  • Applying companies prepare the deposit and the deposit of water and electricity;