PREPARED FOR : PROF. MADYA DR NORFASHIHA BT HASHIM AP224 5C
GROUP MEMBERS MOHAMAD ALIFF YUSRI BINMDTAHIR AHMAD DANIAL BIN AHMAD NAZRAN HASZRUL AMSYAR BIN MOHAMADHANNIF MUHAMMAD AFIF SYAHINBINSAMAN (2022935607) (2022971695) (2022971891) (2022935583)
The chosen Local Authority (la) for this e-MAGAZINE is Shah Alam City Council or MAJLIS BANDARAYA SHAH ALAM (MBSA). The purpose of this interview is to determine the requirements and procedures of MBSA in the approval of development process for residential. The detailed OF collected information, DATA and explanation will be reviewed further in the magazine include the background of MBSA, the flowchart of development order process, requirements of every application, time frame of each stage of application, fess involving in the process of application, relevant form to be included in the application, conversion and subdivision of land chosen, and the application of developer’s license and sale permit in each development. INTRODUCTION PAGE 1
The MBSA founded on 7 December 1978 and was called Pentadbiran Shah Alam (MPSA) before it became MBSA. Their main headquarters is Wisma MBSA & it is located at Persiaran Perbandaran, 40000 Shah Alam, Selangor Darul Ehsan. The capital city of Selangor, Shah Alam, has been administered by the Local Authority of Shah Alam City Council. The current mayor of MBSA is YBrs. Dr. Nor Fuad Abdul Hamid who was appointed on 1 December 2022 and still in the position until now. MBSA' s goal is to ensure the balanced urban development between social, environmental and economic well-being for the well-being of its own citizens. It also to provide municipal development services such as better development, planning, provide basic infrastructure facilities, public health of citizens, cleaning, cemeters, the beauty of landscape, liveness of the city, etc. The departments available to ask for the approval for planning for the development of residential, commercial and industrial are the OSC department, building department, engineering department, planning department and external technical department. BACKGROUND OF LOCAL AUTHORITY MAJLIS BANDARAYA SHAH ALAM (MBSA) PAGE 2
The figure showed the flow chart of a development order process. Based on the interview with the MBSA employees or staffs, the process of each development order process either for residential, commercial or industrial development are the same which lead to the same flow chart. Each of the processes are detailed and explained at figure. FIGURE 1 : Flow Chart of The Development Order Process PAGE 3
As the process of each of the submissions is the same, so do the requirements in the submissions. There are few forms required to submit for the process. Here is the forms are; I. Forms A1-B. II. Two (2) copies of the Proposed Plan in color in size A0/A1 provided and certified by a certified Town Planner and also certified by the landowner (layout / erection of the building / material changes in the use of the building where relevant). III. Two (2) A4 color Development Proposal Reports prepared and certified by a certified Town Planner. V. Supporting reports. V. One (1) copy of the Title certified by the Land Registrar VI. Detailed Survey Plan (application for building erection and arrangement use of land for the purpose of breaking boundaries or annexing land only). VII. Contour Plan (application of land use arrangement for purpose of breaking boundaries or merging land only). VIII. Environmental Impact Assessment (EIA) Report for excess development acres and environmentally sensitive areas and highlands if applicable IX. Traffic Impact Report (TIA) - if necessary. REQUIREMENT OF SUBMISSION PAGE 4
REQUIREMENT OF SUBMISSION (CONT'D) I. Letter of application. II. Copy of latest Assessment Tax receipt or confirmation of untaxed area from the MBSA Valuation and Property Management Department. III. Copy of latest year's Land tax receipt. IV. Copy of Company Registration and company profile (owner) - if applicable. V. Copy of Company Registration and company profile (consultant and developer). VI. Copy of the Certificate of the Town Planning Organization of Malaysia for the latest year The forms mentioned before are to be submitted along with supporting documents such as; VII. Copy of the latest year's Malaysian Town Planning Board Registration. VIII. Letter of appointment of consultant. IX. Power of attorney (if not the landowner). X. Official Search for contiguous lots (if applicable). XI. A digital copy of the Layout Plan in (.dxf) or (.dwg) format XII. Copy of approval letter to change land conditions (if applicable). XIII. Copy of premium payment receipt (in case of land use conditions in right property has not been exchanged). PAGE 5
Person In Charge and Involved Process Duration Explanation Applicant Officer Assistant Planning Applicant takes turn at OSC counter Precheck application Approval sign 15 minutes The applicant must go to MBSA at the OSC counter to apply for a new development procedue. The OSC staff will analyze the application for around (15 minutes) before it is approved. If the application has to be corrected, the applicant must go through the entire procedure again. Applicant Assistant OSC Online application Check status Full notes review 1 Hour After the OSC employee has authorized the procedure, the applicant must submit an online application, check the status, and obtain a comprehensive review notice, which the applicant must complete before resubmitting to the OSC. After the procedure is completed, the applicant will print all of the papers and submit all of the applications to the OSC counter. Applicant OSC Counter Office Document check Payment at OSC counter Applicant receive declaration application Distribute application by online to jabatan Dalaman and Jabatan Teknikal Luaran. 1 DAY Before proceeding with any payment, the entire procedure will take up to (one day) to check that all of the application requirements are met. The applicant will then get the application declaration when payment has been completed And the distribution application will be immediately after the application has been received. If the application is incomplete, it will create a delay and will take longer than (one day) to finish. Engineer Assistant Engineer Town planner Building check Site visit and review Review and adjustment conditions Prepare review, and technical review for OSC secretariat. Submit Review to OSC MBSA 14 DAYS The engineer, assistant engineer, and town planner will examine the development location and review the location throughout this procedure. This procedure can take up to (14 days) to complete, during this time, the applicant is free to do nothing except wait for the review's outcome. Planning directoR Assistant Planning director OSC director pREPAREAND SUBMIT THE CERTIFICATE MINUTE MEETING TO OSC AUTHORITY 1-7 DAYS This procedure will take (1-7 days) to complete, and during that time, the OSC will evaluate all of the approvals and certificates that the engineer and town planner suggest. Due to document review and permission from a higher level individual, this procedure normally takes (one week). TIME FRAME FOR EACH STAGE PAGE 6
CommitteE members OSC employee Assistant OSC Mesyuarat Jawatankuasa Pusat Setempat (MJKPS) 7-15 days Evaluation of the procedure, a meeting will be held to determine if the proposed development site is appropriate. If the application is not related, it will be considered unsuccessful. In the meanwhile, if the application succeeds and is approved by the (MJKPS), the development can begin. In order to explore and analyze all of the consequences of this new discovery, this procedure will take time. Director Senior Assistant director Application passes/conditiona l passes will distribute the policy approval to applicant 1-5 days After the application is approved, the OSC will deliver the policy approval to the applicant in (1-5 days). Applicant Took an action according to the policy approval. 1-28 days This time limit has been set aside for the applicant to adhere to all of the policies that have been provided to him or her. The applicant will have one month to complete and adhere to the policy's requirements. Once the applicant has completed this step, they will be needed to proceed to the next step Senior assistant director Assistant director Town planning employee Document check 1-7 days Following the applicant's resubmission in accordance with the policy approval, all papers will be checked again to confirm that they comply with the checklist. The application will be re-prepared if the document does not follow the checklist. Regardless, if the application is complete, the certificate form for planning permission can be obtained. Senior assistant director Assistant director Town planning employee Certificate approval for planning to applicant 1 day After completing the document check, the applicant will obtain a certificate of permission for planned development within (one day). Applicant Submit planning development with certificate approval for planning to OSC counter 1-7 days Applicants must submit their planning development to the OSC counter, together with their certificate of planning. The OSC will examine and process the application form, which will take around (one week). TIME FRAME FOR EACH STAGE (CONT'D) PAGE 7
Director Planning Emit approval Planning (Form C1) and Pass Plan to applicant 1-7 days After the procedure has been accepted, the director of planning will provide the applicant the planning permission (Form C1) and Approved Plan. This procedure will take around (one week) to complete. Finished (93 days, 1 hour and 15 min) According to the manual's recommendations, the entire process will take (93 days, 1 hour, and 15 minutes) to complete. if the application has a problem or there are insufficient documents, this procedure might take up more than (93 days). TIME FRAME FOR EACH STAGE (CONT'D) PAGE 8
PLANNING FEES INVOLVE There are many fees involved from pre-development process to construction process. the Costs that are involved during the planning stage are the cost before the construction starts. The fees involved are mostly the same because such fees that are involved are stated in law acts that apply to every state authorities. Based on an interview and experience in MBSA, there are costs for land owner searching, land conversion, cost for buying the land plan, cost for the land, developer license fees and professional fees. It is much easier if a developer had the longitude and latitude of the land in order to check on the state and the ownership of the land. the Cost to know the land’s ownership would be RM30 for each land. The following are the example of land ownership application form from MBSA: A) LAND OWNERSHIP SEARCHING COST FIGURE 2 : BORANG PERMOHONAN CARIAN HAKMILIK FIGURE 3 : BORANG CARIAN PERSENDIRIAN PAGE 9
PLANNING Plans of the land can be requested to be printed out by state authority and there are range prices for plan purchase. The following is the payment rate for plan purchase: Less than 5 hectares = RM20.00 per copy B) PAYMENT FOR KEYPLAN Agriculture to Residential = 15% Residential to Commercial = 15% Less that hectare = RM50.00 1-10 hectares = RM100.00 RM15.00 for every title document Section 197 and 76 Less than a hectare = RM50.00 1-10 hectares RM100.00 Improved Value x Conversion Premium Rate = Conversion Premium Payment for land conversion according to Section 124 (1) A and C (Section 204 D) FEES INVOLVE (CONT'D) All land owners must use the land in accordance with the category of land use and express condition stipulated in the title. According to Section 124, National Land Code 1965 allocated that only registered proprietors shall be eligible to apply to the State Authority to alter, impose and convert any status of the land. The calculation of of premium for land conversion in Selangor are: C) LAND CONVERSION =15% x RM330.00 (current land value in Seksyen 14, Shah Alam per m2) x land area = RM 49.50 x 40,468.60 m2 = RM 2,003,195.70 The following is the example of calculation of Premium for Land Conversion from MBSA: Agricultural to Residential building PAGE 10
PLANNING Before the development is to be constructed, a developer has to pay the cost for the land to get the property as a legal ownership. Developers need to notify themselves with two official portals which are BLEES and Pemaju (DEVELoPeR). There will be no registration costs for this BLESS application, however there will be processing fees (RM50), as well as (RM1,000) an application fee for a developer's license. D) LAND COST E) DEVELOPER LICENSE ANNUAL MARKETING & SALE PERMIT FEES FEES INVOLVE (CONT'D) The annual marketing and sale permit will cost RM500. The fees are based on the value of the expertise of the person’s service provided. There are engineers, assistant engineers and town planners who will review the building plant, do the site visit and prepare a technical review report. F) PROFESSIONAL FEES PAGE 11
BUILDING This is the cost that is directly related to the running of the project that is not included under labour and material. It may include such items as land surveying, scaffolding, welfare for labour and many more. This fee is generally determined in advance of the service performed and is based on the value of the expertise of the person’s service provided. The price charged by individuals specially trained in specific fields like consultants which are architect, quantity surveyor etc. a) Preliminary fees b) Consultant fees FEES INVOLVE (CONT'D) In this stage there would be construction costs that would be the part of overall costs during development of a built asset. The construction cost of a project must be clearly defined and may not be finally determined after the actual works have been completed. The fees that will be involved in building are preliminary fees, consultant fees and construction fees. The construction cost of a project must be clearly defined and may not be finally determined after the actual works have been completed. the Construction fees involve the cost of the building and infrastructure. A developer has to pay to the appointed contractor the agreed amount of money until the project is complete. c) Construction fees PAGE 12
BUILDING FEES INVOLVE (CONT'D) In MALAYSIA, PROPERTY OWNERS ARE REQUIRED TO PAY A VARIETY OF FEES, INCLUDING LAND TAX, ASSESSMENT TAX, QUIET RENT AND PARCEL RENT. LAND TAX IS ASSESSED AND MANAGED BY THE LAND AND MINES OFFICEM(PTG) OF STATE GOVERNMENT AND APPLIES TO STRUCTURE IN STRATA. THE QUANTITY IN LAND INCLUDED IN THE PROPERTY'S VALUATION DETERMINES THE LAND TAX COSTS. THE ASSESSMENT TAX IS LOCAL PROPERTY TAX BASED ON THE ANNUAR RENTAL VALUE OF PROPERTY THAT GENERALLY AT RATE OG 2% - 7% THE ASSESSMENT RATE FOR PROPOTIONAL PROPERTIES IS CALCULATED USING THE FORMULA : PAGE 13 ASSESSMENT RATE ANNUAL VALUE X RATE = the percent rate is typically determined by the council's budgetary requirements or by the annual expenses the council incurs in the form of administrative costs, service charges and development costs. the majlis bandaraya will decide on commercial building's rate
CONVERSION AND SUBDIVISION OF LAND After the developer obtain the ownership of the land chosen, the developer must gain feedback and support from the local authorities. Other than feedback and approval from the local authorities, the developer also has to gain approval from other departments such as Department of Technical and Department of Irrigation and Drainage which is compulsory in order to get permission and approval to develop new development on the chosen land. Here are the steps for converting a land status: A) Step 1: Feedback and Support from the Local Authorities and related departments In order to develop a land, the owner of the land must ensure the status of the land must be according to the development that been proposed. This is following to Section 53 of the National Land Code 1965 which said that all land owners must use the land in accordance with the category of land use and express condition stipulated in the title which categorised as agriculture, building and industry. The developer must ensure that land that have been chosen to be developed is in the right zoning that has been approved by the LA. The plot of land that have been chosen by us is located in Shah Alam district which under Majlis Bandaraya Shah Alam (MBSA)'s approval. For subdivision of land is needed in order to generate grant for each developed building in the developed land. For example, if the developer is developing a residential area and build 100 units of houses in a land, the developer needs to divide the ownership of the land and has to generate other 100 grants for all the units’ owner there which the process called as subdivision of land. During gaining approval and feedback from the LA and other related departments, the developer has to apply for land conversion or it is also called as ‘ open case/open file ’ process. This application can be done at land office according to the land location. In order to complete this application, the developer needs to fulfil all the requirements and complete all the documents in the checklist given by the land officer. In the checklist, the developer has to provide important documents such as land grant, identification card and many more. Other than providing all the documents according to the checklist, the developer also has to pay the application fees. B) Step 2: Land Conversion Application PAGE 14
CONVERSION AND SUBDIVISION OF LAND (CONT'D) FIGURE 4: Form for the Land Conversion Application FIGURE 5 : Front Cover of Checklist for Land Conversion Application FIGURE 6 : Rate for Land Conversion Application Fees PAGE 15
Land office will provide the developer a price quotation of premium fees which it has its own calculation based on the land’s location and also the area of the land. The premium fees have to be paid by one-off basis however the developer could ask for discounted price which will be approved by the Majlis Mesyuarat Kerajaan Negeri (MKNN) during the approval process, the developer has to justify their application for the discounted price and if the application is approved, land office will quote new quotation premium fees for the developer. C) Step 3: Premium Fees when the premium fees is settled, land status will change from the previous status to the converted status. the land that we chosed was to develop a new residential area, the land status has converted into a residential plot of land. this whole process and the conversion will lead to changes in annually land tax according to the type of land. D) Step 4: Land Status will change CONVERSION AND SUBDIVISION OF LAND (CONT'D) PAGE 16
APPLICATION FOR DEVELOPER’S LICENSE & SALE PERMIT FOR DIFFERENT TYPES OF DEVELOPMENT Under the provisions of the Housing Development Act, the National Housing Department (HSD) was the government agency that established the legal requirement in development, requiring all developers to obtain a developer's license and a sale permit in order to legally proceed with the development process (Control and Licensing Act 1966). This act's goal is to guarantee that the price of a property being sold is appropriate for the market. It's also how the government keeps track of and regulates development and developer activities. Then there's the buyer's interest, as well as consumer protection from the developer's dishonesty, which might lead to fraud and false information. According to the local authorities' interview, there will be no limitations and conditions imposed on the developer, as long as the applicant has the land property with legal authority, the developer has a chance to apply for development. However, if the developer is not the legal owner of the land, the developer will be asked to present supporting documentation. For example, transferring the right of ownership and granting land. all documents must be legitimate before being submitted to the local government. As a result, the developer must seek a developer license from the Ministry of Housing and Local Government (MHLG), Before proceeding with any work, the developer must obtain this approval. The BLESS system, which stands for Business Licensing Electronic Support System and may now be used to apply for this license online. This BLEES system was a government programme for Housing Development Licenses, Advertisements, and Sales Permits, and it offered information and applications for licenses and the development process. this programme offers a service that allows the government to review and approve applications using an internet platform. As a result, the entire process will be an online application, which will optimize the process development and reduce the processing time from (seven days to five days). Figure 7 : Bless Portal PAGE 17
APPLICATION FOR DEVELOPER’S LICENSE & SALE PERMIT FOR DIFFERENT TYPES OF DEVELOPMENT (CONT'D) For new users who are accessing this portal , a user ID and password will be required. There will be no registration costs for this BLESS application, but there will be processing fees (RM50) payable to the Housing Controller, as well as a (RM1,000) application fee for a developer's license and the annual marketing and sale permit costs (RM500). The developer's license and selling permission will have a two-year validity period, with a oneyear renewal period. Until the developer receives the Certificate of Completion and Compliance (CCC), they must renew their license. The developer must submit an application for an Advertising Permit Developer's License (APDL). New developers’ license and advertising and sales permit plus Renewal of developers' license & advertising and sale permits. Amendment of developer’s license & advertising and sale permit Cancellation of developer’s licenses & advertising and sale permit 1. 2. 3. New developers’ license and advertising and sales permit plus Renewal of developers' license & advertising and sale permits. Amendment of developer’s license & advertising and sale permit Cancellation of developer’s licenses & advertising and sale permit Amendment of sale and purchase agreement Withdraw money from Housing Development Account (HDA) 7) The appointment of auditors and others. 1. 2. 3. 4. 5. This license will be obtained from the Ministry of Housing and Local Government, the Ministry of Housing and Local Government (KPKT). The APDL plan is to prevent any developer misbehavior toward the public by ensuring that the government is monitoring the developer's actions. The developer will need to provide the relevant information to the KPKT in order for the application to be approved, such as the launch date, the cost of land, and specifics on home development projects. Following that, developers will need to acquaint themselves with two official portals: BLEES (http://www.bless.gov.my) and e-Pemaju (http://idaman.kpkt.gov.my). This application will allow a user or developer to submit an application online, with the BLESS receiving and processing the application for: PAGE 18
APPLICATION FOR DEVELOPER’S LICENSE & SALE PERMIT FOR DIFFERENT TYPES OF DEVELOPMENT (CONT'D) The typical checklist for applying for a developer’s license and sale permit and must be completed first before proceeding with any construction works and this documentation will be required for the developer's submission to Local Authorities (LA). 1. Grant/ land title/ land ownership letter 2. Letter of approval for planning permission/ Development order from local authority 3. Approved pre-calculation plan 4. Survey Declaration Certificate from the Board of Land Surveyors 5. Statutory Declaration (Form L2C) 6. Joint Venture Agreement between the developer and landlord (if the land is not owned to the developer) containing compliance clause with Regulations 5 (5) (a) 10, and 11, Housing Development Regulations (Control & Licensing); or Form 14A KTN which has been paid stamp duty and assessment tax as proof that the transfer of land is being processed. 7. Report from CCRIS/CTOS 8. Copy of approval letter and building plan approval from the local authority. 9. Copy of Notice of Commencement of work (Form B) for the expired building plan 10. Three (3) copies of draft advertisement for Brochures and other proposed advertisements. Brochures in BM will be required 11. List selling price for all house unit by house type 12. Letter of approval/ setting price for the sale of Low Cost Houses from the Local Authority. The developer must submit the design and proposal to local authorities for approval. For this purpose, the developer must submit the proposal to MBSA. The developer must go through all the process to get approved for all formalities with the local authorities. The developer will be required to submit the building plans. Once the plan receives approval, there will be a few more applications that will need to be approved by other departments, such as BOMBA, IWK, etc. BOMBA approval will be required for fire safety development, building departments and more. after receiving approval and clearance from all local authorities, then they will be eligible to apply for APDL and the developer can start to build their development legally. The procedure to apply for an Advertising Permit Developer's License (APDL) PAGE 19
RELEVANT FORM FIGURE 8: application for planning permission FIGURE 9: application for planning permission FIGURE 10: application for planning permission FIGURE 11: application for planning permission PAGE 20
RELEVANT FORM FIGURE 12: certificate of building/structure demolition plan FIGURE 13: applicant information form FIGURE 14: applicant information form FIGURE 15: development/business cost form PAGE 21
RELEVANT FORM FIGURE 16: application for permission to plan a layout plan FIGURE 17: application for permission to plan a layout plan FIGURE 18: application for permission to plan a layout plan FIGURE 19: application for permission to plan a layout plan PAGE 22
RELEVANT FORM FIGURE 20: application checklist FIGURE 22: consultant letter FIGURE 23: application to change land conditions FIGURE 21: application checklist PAGE 23
RELEVANT FORM FIGURE 24: application to change land conditions FIGURE 25: application to change land conditions FIGURE 26: application to change land conditions FIGURE 27: application to change land conditions PAGE 24
RELEVANT FORM FIGURE 29: application to change land use FIGURE 31: DISTRICT OFFICE REGISTRATION UNIT FIGURE 28: application to change land conditions FIGURE 30: application to change land use PAGE 25
RELEVANT FORM FIGURE 32: DISTRICT OFFICE REGISTRATION UNIT FIGURE 33: LAND METHOD FIGURE 34: LAND METHOD PAGE 26
CONCLUSION As the conclusion, bASED ON THE COLLECTED DATA AND INFORMATION FROM THE INTERVIEW ,the development is a wider process than construction which is mainly like houses (Residential). There are a few step of legal processes that must be followed to as determine whether the proposed developments should be permitted and approved. Based on majlis bandaraya shah alam (MBSA), the process of each development order process either for residential, commercial or industrial development are the same and same goes to their time frame. Fees involved are from planning stage to building. The fees are pretty much the same for every state authority. Other than that, all proprietors (land owners) must use the land in accordance with the category of land use such as agricultural, commercial, industrial and residential. There is conversion of land where the category of land use from the existing category to another category of the variation. Lastly, all developers must obtain a developer's license and a sale permit in order to legally proceed with the development process. There will be no limitations and conditions imposed on the developer, as long as the applicant has the land property with legal authority, the developer has a chance to apply for development clearance. PAGE 27
REFERENCES 1Application and Licensing – REHDA. (2022). Retrieved 6 june 2023, from http://rehdainstitute.com/application-and-licensing/#3 Portal Rasmi Jabatan Perumahan Negara. (2023). Retrieved 7 june 2023, from https://ehome.kpkt.gov.my/index.php/pages/view/93 Land Conversion Premium in Selangor. (2022). Retrieved 8 june 2023, from https://industrialandland.com/land-conversion-premium-selangor/ SCHEDULE A. (2021). Retrieved 6 june 2023, from https://www.hba.org.my/laws/housing_reg/2002/schedule_a.htm Shah. (2019). 3°04’15.7"N 101°31’19.1"E · presint 3, 4, Persiaran Perbandaran, Seksyen 14, 40000 Shah Alam, Selangor. 3°04’15.7"N 101°31’19.1"E · Presint 3, 4, Persiaran Perbandaran, Seksyen 14, 40000 Shah Alam, Selangor. https://www.google.com/maps/place/3%C2%B004'15.7%22N+101%C2%B031'19.1%22E/@3.071 0368,101.5197813,17z/data=!3m1!4b1!4m4!3m3!8m2!3d3.0710368!4d101.52197?hl=enMY&entry=ttu What is the Housing Development Act (HDA) in Malaysia? | Properly. (2021). Retrieved 9 june 2023, from https://properly.com.my/blog/what-is-the-housing-development-act-hda/ PAGE 27
THANK YOU! PAGE 28