Article written by Joyce Low, founder of industrialspace2u.com
A common question raised by a manufacturer setting up plant in Malaysia is whether their nature of manufacturing activity falls under light, medium or heavy industry.
This is an important question to be addressed as the industrial area in Malaysia some of which are subdivided into Light, Medium and Heavy Industry. Hence, a manufacturer of Heavy Industry range of products cannot operate in a Light or Medium Industrial area, or risk being shut down and be subject to stiff penalties.
Light, Medium or Heavy Industry Development in Malaysia
Hence, we have detailed below the general activities categorized under Light, Medium and Heavy Industry.
Criteria
General activities
Light Industry
1. Manufacture of Food Products
- Processing and preserving of fruits and vegetables
- Manufacture wines, soft drinks, and mineral water
2. Manufacture of Beverages
- Processing and preserving of fruits and vegetables
3. Manufacture of Tobacco Products
- Manufacture of tobacco products and tobacco substitutes
4. Manufacture of Textiles
- Spinning, preparing textiles and reeling and washing of silk
- Manufacture textile floor coverings, narrow woven fabrics.
5. Manufacture of Wearing Apparel
- Manufacture of wearing apparel, articles of fur, knitted and crocheted apparel.
6. Manufacture of Leather and Related Products
- Manufacture luggage, handbags and footwear
7. Manufacture of Wood and of Products of Wood and Cork, except Furniture; Manufacture of Articles of Straw and Plaiting Materials
- Manufacture of other
wood products, articles
of cork, straw and
plaiting materials
8. Manufacture of Paper and Paper Products
- Manufacture pulp, paper and paperboard including envelopes, wallpaper, etc.
9. Printing and Reproduction of Recorded Media
- Printing and services related to printing and reproduction of recorded media
10. Manufacture of Che micals and Chemical Products
- Manufacture basic chemicals, distilled water and other chemical products
11. Manufacture of Basic Pharmaceutical Products and Pharmaceutical Preparations
- Manufacture of pharmaceuticals, medicinal chemical and botanical products
12. Manufacture of Rubber and Plastic Products
- Manufacture or semimanufacture of plastic products or finished plastic products.
13. Manufacture of Computer, Electronic and Optical Products
- Manufacture electric components, communication equipment and consumer electronics for home entertainment.
14. Manufacture of Electrical Equipment
- Manufacture of electric motors, batteries, and accumulators
- Manufacture of fiber optic cables and other electronics and wires and cables.
15. Manufacture of Machinery and Equipment n.e.c
- Manufacture of machinery and powerdriven hand tools
16. Manufacture of Other Transport Equipment
- Manufacture of transport equipment
17. Other Manufacturing
- Manufacture or jewellery, sports goods, games and toys, and dental instruments and supplies
18. Repair and Installation of Machinery Equipment
- Repair of electronic and optical equipment, electrical equipment and transport equipment, etc.
19. Electricity, Gas, Steam and Air Conditioning Supply
- Electric power generation transmission and distribution and steam and air conditioning supply
20. Water Collection, Treatment and Supply
- Water collection, treatment, and distribution activities for domestic and industrial demand, operation of irrigation canals
21. Sewerage
- Temporary Sewage Treatment Plant for Construction Activities
Medium Industry
1. Animal Production
- Raising domesticated animals, operation of worm farms, beekeeping, etc.
2. Other Mining and Quarrying
- Extraction and dredging of industrial sand
3. Manufacture of Food Products
- Manufacture vegetables, animal fats, grain mill products, and starch products
- Production of pulled wool, feathers and down
4. Manufacture of Beverages
- Manufacture of malts and distilling, rectifying and blending of spirits
5. Manufacture of Textiles
- Preparation and spinning textile fibers
- Manufacture of textiles, cordage, rope, twine, and netting
- Manufacture wooden containers and builders’ carpentry
7. Manufacture of Paper and Paper Products
- Manufacture pulp, paper and paperboard, and corrugated paper
- Manufacture basic chemicals, dye, printing ink, soaps, and printing ink
- Manufacture gelatines, photographic plate, matches, and man-made fibre
9. Manufacture of Rubber and Plastic Products
- Manufacture rubber tyres, synthetic rubber, and processing plastic resins into intermediate or final products.
10. Manufacture of Other NonMetallic Mineral Products
- Manufacture of glass and glass products, clay building materials and porcelain
11. Manufacture of Basic Metals
- Manufacture of basic precious and non-ferrous metals
- Casting of tubes and pipes, seamless tubes and pipes of steel.
12. Manufacture of Fabricated Metal Products, except Machinery and Equipment
- Manufacture structural metal products, weapons and ammunition, and fabricated metal products.
13. Manufacture of Electrical Equipment
- Manufacture of batteries, wiring and wiring devices and lighting equipment.
14. Manufacture of Machinery and Equipment n.e.c
- Manufacturing generalpurpose machinery, fluid power equipment, lifting and handling equipment and special-purpose machinery
15. Manufacture of Motor Vehicles, Trailers and Semi-Trailers
- Manufacturer of Motor Vehicles
- Manufacturer of bodies (coachwork) for motor vehicles; manufacture of trailers and semi-trailers
- Manufacture of parts and accessories for motor vehicles
16. Manufacture of Other Transport Equipment
- Building of ships and boats, transport equipment and motorcycles.
17. Manufacture of Furniture
- Manufacture of furniture
18. Repair and Installation of Machinery Equipment
- Repair fabricated metal products, machinery and equipment and repair and maintenance of division 30 transport equipment.
19. Electricity, Gas, Steam and Air Conditioning Supply
- Electric power generation, transmission and distribution. Production, collection and distribution of steam and hot water.
20. Sewerage
- Operation of sewer systems of sewage treatment facilities
Heavy Industry
1. Animal Production
- Raising of farm animals including racing horses and other equines
2. Mining and Quarrying
- Mining coal, lignite, iron ore, bauxite, gold, etc
3. Extraction of Crude Petroleum and Natural Gas
- Extraction of crude petroleum including extraction and onsite processes.
- Extraction of natural gas
4. Mining of Metal Ores
- Mining metal ores other than uranium and thorium
5. Other Mining and Quarrying
- Mining and quarrying
- Quarrying stone such as marble granite sandstone, etc
6. Mining Support Service Activities
- Support activities for petroleum and natural gas extraction
- Support activities for mining and quarrying
7. Manufacture of Food Products
- Processing and preserving meats, fish, crustaceans and molluscs
- Production of hides and skin and animal offal. Operation of animal slaughterhouse
8. Manufacture of Textiles
- Spinning, weaving, and finishing of textiles
- Preparation and spinning of textile fibres
9. Manufacture of Leather and Related Products
- Tanning and dressing of leather; dressing and drying of fur
10. Manufacture of Wood and of Products of Wood and Cork, except Furniture; Manufacture of Articles of Straw and Plaiting Materials
- Sawmilling and planning of wood
- Manufacture of products of wood, cork, straw and plaiting materials
11. Manufacture of Paper and Paper Products
- Manufacture of pulp, paper, and paperboard
- Manufacture of bleached, semi-bleached or unbleached paper pulp by mechanical, chemical or semi-chemical process from virgin wood
12. Manufacture of Coke and Refined Products
- Manufacture of coke and oven products
- Manufacture of refined petroleum products
13. Manufacture of Chemicals and Chemical Products
- Manufacture of basic chemicals
- Manufacture of organic and inorganic chemicals except for nitric acid
14. Manufacture of Rubber and Plastic Products
- Manufacture of rubber tyres and tubes
15. Manufacture of Other Nonmetallic Mineral Products
- Manufacture of glass, cement, lime, clinkers, and refractory products.
16. Manufacture of Basic Metals
- Manufacture of basic iron and steel
- Operation of the blast furnace, steel converters
17. Manufacture of Fabricated Metal Products, except Machinery and Equipment
- Manufacture of structural metal products, tanks, weapons, ammunition.
- Forging, pressing, stamping and roll-forming of metal
18. Manufacture of Other Transport Equipment
- Building ships and boats, railway locomotives, air and spacecraft machinery and military fighting devices.
19. Electricity, Gas, Steam and Air Conditioning Supply
- Electric power generation, transmission and distribution
- Manufacture of gas; distribution of gaseous fuels through mains
20. Waste Collection, Treatment, and Disposal Activities; Materials Recovery
- Waste treatment and disposal
- Treatment of waste
We wish to highlight that the classification of the industries and activities draws reference to the Malaysia Standard Industrial Classification 2008 (MSIC 2008) Version 1.0 (as of 2012) which is used to derive the business code when the company is being registered by the Registered Company Secretary.
Buffer Zone between Industrial Area and Residential Area
A buffer zone, which is the area or distance between industries and residential areas, is introduced to distance the residential area from the area of activity to reduce the exposure to pollution.
Buffer distance for specific processes/polluting sources that are difficult to control effectively may require greater buffer distances. The actual buffer is to be determined by modeling studies.
Criteria
Industry Description
Light Industry
- None or very low pollution potential for air pollution, noise, vibration, odour, fire or explosion
- Does not involve the use of hazardous raw materials or production of hazardous products
- Use of renewal or low greenhouse gas emission sources of energy
- Generate no or very low amounts of wastewater with potential to contribute to water pollution
- Generate non-hazardous solid waste and no significant amount of scheduled wastes.
Medium Industry
- Moderate pollution potential and risk due to fire, explosion, and/or hazardous chemicals
- Moderate air pollution potential (including odour) from low levels of residual air pollutants
- Moderate potential for emission of greenhouse gases and/or ozone depleting substances
- Moderate noise and/or vibration with no significant residual impact
- Generate significant quantities of wastewater containing low levels of residual pollutants
- Generate scheduled wastes which are mostly readily treated or managed within prescribed facilities.
Heavy Industry
- High pollution potential and risk due to fire, explosion, radiation, and/or highly hazardous chemicals.
- High air pollution potential (including odour) from residual pollutants in air emissions (fugitive and source emissions).
- Use of renewal or low greenhouse gas emission sources of energy
- Generate no or very low amounts of wastewater with potential to contribute to water pollution
- Generate non-hazardous solid waste and no significant amount of scheduled wastes.
General Advice
If it is unsure whether the activity planned falls under Light, Medium or Heavy industry, the Department of Environment (DOE) should be consulted for further information. A professional engineer could also be consulted so that a proper buffer zone can be assigned to avoid future complications.
More often than not, an Environment Impact Assessment (EIA) Report would need to be submitted by the manufacturer to Department of Environment (DOE) before the Local Authority approves the Development Order (DO) or issues the operating licence.
References
Disclaimer: Reference made to “Guidelines for Siting and Zoning of Industrial and Residential Areas” as published by Department of Environment (DOE). We do not take any responsibility and not liable for any misunderstandings, loss and damages caused by information above. Kindly consult Department of Environment (DOE) for more detailed information.
http://www.doe.gov.my/eia/wp-content/uploads/2012/02/Guidelines-For-Siting-and-Zoning-of-Industry-and-Residental-Areas-2012.pdf
We would be pleased to provide solutions to your factory requirements. Do contact Joyce at +6017 333 8007 or joyce@industrialspace2u.com