Construction Authorities ǀ Functions ǀ Stages & Procedures


Construction Regulation Malaysia

In Malaysia, the government consists of three separate levels: federal, state, and local government. The difference between them is that federal and state governments are elected, whilst the local governments are those appointed. All three levels of government have imposed several legislations and regulations on the business including the construction sector. The building regulatory system in Malaysia has prescribed the local authority as the only planning authority. The Town and Country Planning Act 1976 (Act 172) establishes the federal, state and local planning authorities and includes the approval of development plans, permission of the land and building use, purchase notice and acquisition of land, and other provisions. However, this regulation only applies to Peninsular Malaysia and not applicable to the states in East Malaysia. The states in Sabah and Sarawak have their Building Ordinances where the state governments are the planning authority.


The Uniform Building By Laws 1984, also referred to as the UBBL 1984, is a subsidiary law under Street Drainage and Building Act 1974 (Act 133). This is the building code Malaysia has established and applies to all building types. In Peninsular Malaysia, the local authorities have power over every building, as well as the buildings owned by the government. Generally, the laws are formulated by federal governments and are passed to the state governments to gazette the laws. The laws are only legally binding and enforceable by the local authorities after the states have gazetted the laws. At present, the Acts enforced in the construction industry are Federal Roads Act 1959, Quantity Surveyors Act, Registration of Engineers Act, Architects Act, Construction Industry Development Board Act, Town Planners Act, and other relevant legislation.

Construction Authorities Malaysia

In Malaysia, there are several regulatory agencies and associations involved in the development of the construction industry. For instance, the Ministry of Works Malaysia is involved in implementing infrastructure projects and ensures Bumiputera entrepreneurs take part in the construction sector. The Construction Industry Development Board of Malaysia (CIDB) is a statutory body of the Ministry of Works and has functions such as promoting the development and assisting in the construction development and is a platform for contractors to register themselves, also certifying site workers and supervisors. Apart from these regulatory bodies, other regulatory agencies that regulate the Malaysian construction industry are such as the Board of Engineers Malaysia, Institution of Engineers Malaysia, Malaysian Institute of Architects, Master Builders Association Malaysia, and other related agencies and associations.


Construction Life Cycle

In construction, every stage of the construction life cycle needs approval from local authorities. At the beginning of the cycle, which is the planning phase, the developer would need to seek approval of the land conversion. During the design phase, the construction project that is to be built or the initial design plan must obtain the approval of the Development Order from the local authority. After submitting the Development Order and having successfully obtained the approval from the local authority to develop, the step after is to submit all related building plans to the local authority for approval to construct. Following this, at the construction phase, the contractor will need to obtain a license to operate on the site from the local authority. In the last stage of the construction cycle which is the handover phase, the contractor will need to apply for the local authority to certify a Certificate of Compliance and Completion (CCC).

Construction Project Malaysia

Regulations and Involvement of Local Authority

In detail, the federal regulations regulating the Development Order are the Town and Country Planning Act, 1976 (Act 171), National Development Planning, National Land Code (NLC,2008), Land Conversion Act 1959 (Act 376), Land Development Act 1956 (Act 474), Land Acquisition Act 1960 (Act 486), Federal Territory Planning Act 1982, Federal Housing Act 1960, UBBL, Building & Common Property Act 2007, Street, Drainage and Building Act 1974, Environmental Quality Act 1984 Registration of Business Act 1956 and Housing Development Act 1966. The local authorities involved in approving the Development Order are the State Planning Committee (SPC) local authority planning department, department of Town and Country Planning and other related councils. The regulations enforced by the local authorities are Town Planners Act 1995, Ministry of Housing and Local Government 2008, Town and Country Planning Act 1955, etc.


In obtaining the building permit, the federal regulations are the Building Control Act, Environmental Quality Act 1984, Government Contract Act 1949 (Act 120), Contract Act 1950 (Act 376), Water Services Industry Act 2006 and UBBL 1984. Besides that, the local government involved are the Local Authority Building Department, Local Authority Engineering Department, and the Technical Department, including JPBD, JKR, TNB, JPP, PBA, JMG, JBPM and PTD.


During the construction phase, the federal regulations are such as Factories and Machinery Act 1967 (Act 139), Factories and Machinery Regulations 1986, Factories and Machinery Regulations 1970, Occupational Safety and Health Act 1994, Employment Act 1955, Employer Social Security Act 1969, Workmen Compensation Act 1952, Immigration Act 1959/63, Housing Development Regulations 1989, Contract Act and Environmental Quality Act 1984. Whereas the local authorities involved at this stage are CIDB, DOSH, Ministry of Housing and Local Government. They are to certify the contractor’s licence, certifying construction and building materials, supervision of contractor’s activities, signboards and advertisement permits and other related activities.

When the project construction is completed, local authorities involved prior to certifying a Certificate of Completion and Compliance are the Principal Submitting Person, relevant local authority, TNB, Water Authorities, JPP, JKPP, Fire and Rescue Service Department and the Road and Drainage Department.

Building Permit Malaysia

Project Design, Build with Authorities Approval Submission in Malaysia

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Construction Site Malaysia


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