THE Selangor State Assembly has approved the setting up of a trust fund to strengthen enforcement measures under the state’s programme to legalise illegal factories.
Selangor local government and tourism committee chairman Datuk Ng Suee Lim said the Illegal Factories Trust Fund would be primarily utilised for enforcement activities, including hiring additional officers to tackle illegal factory operations.
He said 1% of the premium paid by factory operators undergoing the “whitelisting exercise” (legalisation process) will go into this fund.
“When they pay their premium for the legalisation process, we will channel it (1%) into the trust fund,” Ng said in his speech during the sitting at Bangunan Dewan Negeri Selangor in Shah Alam.
Later at a press conference, Ng highlighted the benefits of the fund, noting that it would expedite enforcement activities.
“To carry out enforcement, funds typically need to be applied for in advance, a process that is both time-consuming and costly.
“This trust fund allows us faster access to the necessary funds,” he said, adding that the Selangor Land and Mines Office would oversee its management.
According to a May 24 StarMetro report, 4,170 factories were identified as operating illegally across Selangor, marking a drop from the previous recorded figure of 6,000 illegal factories.
The lower number follows a “whitelisting exercise” conducted by the special committee on illegal factories.
The exercise forms the foundation for Selangor’s three-year Legalising of Unlicensed Factories Programme (PPKTK), scheduled from 2024 to 2027.
Ng emphasised Selangor’s commitment to assisting unlicensed factory operators in transitioning to legal operations.
He identified Klang and Petaling districts as key focus areas for enforcement due to numerous structures built on government land without approval.
“There are 17 factories in Klang and 51 in Petaling operating on government land, including road reserves,” he said.
These include businesses such as furniture factories, lorry depots, machinery workshops, aluminium workshops and storage areas for heavy machinery like forklifts.
Ng said the legalisation offer was a final opportunity for operators to come forward and legitimise their operations.
