What to Check Before Renting a Factory in Rawang: Approvals, Power, Licences and Rent

Key Takeaways

• Start with the paperwork, not the floor. A factory in Rawang falls under Majlis Perbandaran Selayang (MPS), and MPS only licenses premises that have planning approval, approved building plans and a CF or TCF, and that meet Bomba and health requirements (MPS licence conditions). If the unit cannot pass that test, your business licence is at risk.
• Match the power to your machines before you talk about rent. I ask the landlord for the TNB bill and the meter type on the first call, because upgrading supply takes time that a lease start date rarely allows.
• Check whether your process needs its own licences. Selangor's water regulator LUAS is visiting industrial areas door to door and gives premises 14 days to apply for a Zero Discharge Policy licence (The Star, 20 October 2026).
• Use registered rents as your yardstick. JPPH-registered factory tenancies in Rawang and Kundang over 24 months had a median rent of RM1.39 psf/month, typical RM0.91 psf/month to RM2.22 psf/month, with a typical term of 24 months.
• Budget for stamp duty on the full rent. From 2026 a tenancy is stamped through LHDN's self-assessment system, at RM1 to RM7 per RM250 of annual rent depending on the term.

What do I check first when a client asks me to find a factory to rent in Rawang?

When a client asks me to shortlist factories in Rawang, I start with three questions before I open a single listing: what the machines draw in power, how big the trucks are, and what the process discharges. Those three answers rule out more units than size or rent ever does. A 2,400 sq ft terrace factory and a detached factory on an acre serve completely different businesses, and the wrong match wastes everyone's viewing time.

Then I look at the title and the approvals. Rawang town sits in Mukim Rawang, one of the three mukim that make up the MPS area (MPS administrative area). For a unit further north, I check which council's assessment bill the landlord actually pays, because that is the council you will license with.

You can see what is available now on the Rawang factory for rent page, and the wider picture of the town's estates on the Rawang area page.

Does the factory have the approvals your business licence needs?

This is the check that causes the most trouble later, so I do it before a client falls in love with a unit. MPS sets out its approval conditions plainly (MPS):

• the premises must have planning approval or a Development Order;
• it must have approved building plans and a certificate of fitness (CF or TCF);
• it must meet Health Department and Bomba requirements;
• the licensed premises may only be used for the activity written on the licence, and the building may not be altered without permission.

For buildings completed after 12 April 2007, the Certificate of Completion and Compliance (CCC), issued by the principal submitting person, replaced the old certificate of fitness (Malaysian Bar). On a site visit I ask the landlord for a copy of the CF or CCC and the approved layout, then walk the building with it. Mezzanines, enclosed loading bays and extra offices that are not on the approved plan are the usual problems in older Rawang factories.

What should I ask about power, trucks and the floor?

My site visit list for a production tenant is short and practical:

1. Power: the current TNB tariff and meter, the main switch rating, and the age of the switchboard. If you need more than the building has, read my guide on when a TNB compact substation is needed in Rawang or Serendah before you sign anything.
2. Access: can a 40-footer trailer turn into the compound and reach the loading bay without reversing on the main road? I walk the route from the main road to the gate.
3. Floor and roof: floor loading for racking or heavy machines, roof leaks after rain, and the height under the beams.
4. Drainage: where the surface drain goes, and whether the compound has flooded before. I ask neighbours, not only the landlord.
5. Neighbours: a food maker next to a spray-painting shop is a problem for both.

If your work is heavier than light industry, check the category against Ms Teh's light, medium and heavy industry guide before you shortlist.

Will my process need licences beyond the council?

Often, yes. Three come up regularly in Rawang:

• Fire certificate. Premises classed as designated premises under the Fire Services Act 1988 need a fire certificate from Bomba, valid for 12 months and renewed every year (Bomba). MPS also asks for the fire extinguisher inspection receipt when you renew a licence.
• Water discharge. Under Selangor's Zero Discharge Policy, premises must hold the relevant LUAS licence; LUAS had issued almost 7,000 licences and was checking industrial areas door to door (The Star). If you wash, cool or treat anything with water, ask whether the previous tenant held one.
• Worker housing. If you plan to house workers, the employer needs a Certificate of Accommodation from the Labour Department under Act 446; employers who fail to comply can be fined up to RM50,000 (FMT). A factory's approved plan rarely allows a hostel inside the production building.

How much is factory rent in Rawang, and how do I judge an asking rent?

I use registered figures, not asking prices. In JPPH-registered transactions for Rawang and Kundang (latest month August 2026):

Measure	Registered figure
Factory tenancies recorded, 24 months	25
Median rent, all factories	RM1.39 psf/month
Typical range	RM0.91 psf/month to RM2.22 psf/month
Typical term	24 months
Terrace factory rent	RM1.06 psf/month, median monthly rent RM2,600 for about 2,400 sq ft (14 tenancies)

These are the registered records available so far, not every tenancy in the area. The full breakdown is on FactoryHub's Rawang and Kundang transaction prices and rents page. When an asking rent sits well outside that range, I ask what explains it: a newer building, higher power, a bigger compound or a longer term.

What goes into the tenancy agreement and stamp duty?

Before a client signs, I make sure the agreement answers these points in writing: who repairs the roof and the structure, who pays quit rent and assessment, whether you can install machines, racking or a substation, what reinstatement means at the end, and the option to renew with its rent formula. Landlords have their own checklist too; my guide for owners on screening a factory tenant shows what they will ask you for.

Stamp duty is charged under Item 49(a) of the Stamp Act at RM1, RM3, RM5 or RM7 for every RM250 of annual rent, for terms of up to one year, over one to three years, over three to five years, and over five years (LHDN guideline). Since 1 January 2026, tenancies fall under Phase 1 of LHDN's Stamp Duty Self-Assessment System and are filed on MyTax (LHDN), and agreements should be submitted within 30 days of signing (LHDN STAMPS FAQ). Taking the registered terrace median of RM2,600 a month on a two-year term: RM31,200 a year is 125 units of RM250, so the duty is 125 x RM3, or RM375. FactoryHub's tenancy stamp duty calculator works it out for your own figures.

How long does it take, and what slows it down?

I do not promise a timeline, because it depends on the unit. What I see slowing a Rawang search most often is one of four things: power that does not match the machines, a building that differs from its approved plan, a process that needs a licence the previous tenant never held, or a landlord who needs time to clear the unit. Checking these early is what keeps a search short.

If your requirement is a bigger, standalone building, start with the detached factories for rent in Rawang or the managed estate at Rawang Integrated Industrial Park.

If you are looking for a factory to rent in Rawang, WhatsApp Jason Low, Probationary Estate Agent PEA 1478 with CID Realtors, on +60 12-288 1834.