SELANGOR earned RM64.5mil in land premium payments and temporary land permits from illegal factory owners up till September.
State New Village Development and Illegal Factory Task Force Committee chairman Ean Yong Hian Wah said Petaling headed the list with RM28.5mil; Hulu Langat — RM14.9mil; Klang — RM14.1mil; Kuala Langat — RM4.9mil; Sepang — RM1.1mil; Gombak — RM337,800; Hulu Selangor — RM34,300 and Sabak Bernam — RM8,000.
“Some 843 of the overall 2,370 illegal factories now operating in the state have applied for land conversion. This represents 35.6%,” said Ean Yong in a recent media statement.
By definition, factories operating without permits, business licences or certificates of completion and compliance (CCC) on land meant for residential, agricultural or commercial purposes or on government reserve land are illegal.
Under the legalisation programme, only illegal factories set up before September 2007 qualify. Factories set up after that could apply to change their land status but they would not be included in the legalisation programme.
Ean Yong also said the deadline for submitting applications was June 30 next year.
The Illegal Factories Rehabilitation Programme was introduced by the previous Selangor state government in 2006. Major changes were made when the current government came into power.
Effective measures deployed by the present state government to solve the issue included getting the respective land offices and local authorities to draw attention to the offences being committed.
Ean Yong further said enforcement action was carried out against factory owners who persisted in ignoring the 1965 National Land Code or continued to flout the by-laws and acts in place.
“There are several incentives to encourage the errant factory owners to take part in the legalisation programme such as the 50% discount for land premiums paid within three months, 30% within six months and 10% within nine months,” he said.
The incentive was made attractive further with the 50% discount applicable to factory owners who could prove that they had taken the initiative to apply for bank loans within three months upon obtaining land conversion approval.
The new Minimal Technical Condition guideline approved by the state and to be applied by local authorities would simplify the process for obtaining building approvals.
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