Illegal factories warned

ILLEGAL factories in Selangor have been warned that stern action will be taken against them for failing to submit applications to legalise their factories.

Selangor New Village Development and Illegal Factory Task Force Committee chairman Ean Yong Hian Wah said the deadline to submit their applications was June 30 next year. But the deadline for the business licence is Dec 31, 2009.

“Those who fail to submit their applications by the deadlines will face stern action which include legal action,” he said during a press conference at the state secretariat building on Monday.

He said the state government had also drawn new guidelines for illegal factories to follow in the proces of legalising their premises.

The new guidelines provide standard minimum technical requirements for these illegal factories to become legalised.

He said the new guidelines would be adapted by all local councils to make it easier for the factory owners to apply for the required permit for their premises.

The guidelines state that the factory can only have a maximum build-up of 91.4m in length with a minimum of 3.96m of land undeveloped on the side and back of the premises. A minimum of 6.1m is also required to be left undeveloped at the front portion of the factory.

The new guidelines also require the factories to abide by the fire safety requirements by having a suitable wall material.

“The state government realises these factories have contributed to the economy and provided employment to the locals.

“And we are also seriously looking into the problems that they are facing. So we are offering various incentives for them to get their factories legalised,” he said.

He added that among the incentives are a 50% discount for premiums to applicants who are able to prove that they have submitted loan applications to banks or financial institutions within three months of the conversion approval date.

“It means the applicants would still be able to enjoy the 50% discount as incentives even though the bank loan is approved after the first three-month period expires,” he said.

He said reminders would be sent to premise owners, asking them to submit their application to legalise their factories together with the new guidelines.

“If the owners still fail to apply within six months, after receiving reminders at the end of this year, the land administrators will issue the 7A notice in line with the National Land Code, for flouting the land requirements,” he said.

Yong said the latest statistics had recorded 2,370 illegal factories in Selangor.

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