DEVELOPMENT

CONTROL &
PLANNING
PERMISSION
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DEFINITION OF DEVELOPMENT

Development is defined under the Town and Country Planning

Act as “the carrying out of building, engineering, mining or
other operation in, on, over or under land, or the making of
any material change in the use of any building or other land.”

Most forms of development require planning permission

before the development can be carried out.
 PLANNING
PERMISSION
PLANNING PERMISSION
o Formal approval by the Local Council / Local Planning
Authority, often with conditions, allowing a proposed
development to proceed.
o An application may be approved, approved subject to certain
conditions or refused.
o Full permissions are usually valid for 12 months (1 year) but
can be considered for the extension of time, subject to the
jurisdiction and approval from the Local Council.
o New buildings, major alterations and enlargement of existing
buildings, and many changes of use of buildings and land
require planning permission.
 PLANNING PERMISSION
APPLICANT
Applications for Change of
Land Use and increased in
density
SUBMIT
APPLICATION PLANNING
EVALUATION

SITE INSPECTION AND

REFERING
TECHNICAL DEPARMENTS

TOWN PLANNING
PLANNING COMMITTEE
EVALUATION

Refuse
HEARING SESSION
TOWN PLANNING
COMMITTEE
Approved with condition

DEVELOPMENT PLAN AMENDMENT

COMPOUND Approve
CHARGE

DEVELOPMENT
ORDER

PLANNING PERMISSION APPROVAL PROCESS

BY TOWN PLANNING COMMITTEE
Provision Of Act 267, 1982

Provisions Act
Sec. 20 (1), The Federal Territory
(Planning) Act, 1982, Act 267

“No person shall commence,

undertake or carry out any
development irrespective of
whether or not the development
is in conformity with the
development plan unless a
development order granting
planning permission in respect of
the development has been issued
to him.”
 Provision Of Act 267, 1982 …cont

Provisions Act
Sec. 20 (2), The Federal Territory
(Planning) Act, 1982, Act 267

“No Planning Permission

Shall Be Necessary For
Carrying Out Such Works
Necessary For The
Maintenance, Improvement
Or Other Alteration Of Any
Building Which Affect Only
The Interior Of The
Building And Which Do Not
Involve Or Change Any
Condition In Subsection
(2(A)”
DEVELOPMENT
ORDER
 DEVELOPMENT ORDER

1. Development Order issued under Act 267 granting planning

permission with or without conditions.
2. The validity period of a Development Order is one year from the
date issued.
3. For change of land use / density zoning, the Development
Order is valid once the development charge paid.
4. Mayor of Kuala Lumpur can extend the validity period of
Development Order.
DEVELOPMENT ORDER
The requirements for application of development order may
include the following item:
1. Development charge and other fees
2. Basic Planning Requirement
3. Technical Conditions
4. Land Matters
5. Public Facilities and Utilities
6. Public services, safety and convenience
7. New Economic Policies
8. Urban /building Designs
9. Others/General

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DEVELOPMENT ORDER
DEVELOPMENT
CHARGE
DEFINITION OF
DEVELOPMENT CHARGE

A payment that is levied upon the property

owner/developer by the local planning authority for
planning approval that involves:
a) Increase in land value as a result of change of
land use/increase in residential density
b) Additional Floor Space/ residential unit
c) Lack of Car Parking Space

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 TYPE OF DEVELOPMENT
CHARGES
CATEGORY TYPE OF METHOD RELATED
DEVELOPMENT DEPARTMENT
Enhanced land 1.Change of 1.Comparison Method Valuation &
value landuse 2.Residual Method Property
2.Increase of Management
density Department Of
CHKL
Excess from the 1.Excess floor 1.Direct calculation Planning
permission plot area Development &
ratio/density 2.Excess of Building Control
residential Dept. Of CHKL
units
Shortage of car 1.Shortage of 1.Direct calculation Planning
parking spaces car parking Development &
spaces Building Control
Dept. Of CHKL

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ACT PROVISION
Section 40 (1)
“………. a change of use, density, plot ratio or floor area in respect of
any land so as to enhance the value of the land, a development charge
at the prescribed rates shall be levied in respect of any development
of the land commenced, undertaken, or carried out in accordance
with the change ….”
FEDERAL TERRITORY (PLANNING)
ACT 1982 (ACT 267)
Section 40 (1)
Where a local plan or an amendment of a local plan
effects a change of use, density, plot ratio or floor
area in respect of any land so as to enhance the value
of the land, a development charge at the prescribed
rates shall be levied in respect of any development of
the land commenced, undertaken, or carried out in
accordance with the change.

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FEDERAL TERRITORY (PLANNING)
ACT 1982 (ACT 267)
Section 40 (2)
Without prejudice to the subsection (1), a development
charge at such rates as may be prescribed shall also be
levied by the Commissioner where the development order
granting planning permission in respect of a development is
subject to

a) A condition that such development may be carried out

only if spaces for car parking are provided in such
manner and to such extent as specified in the
development order; and

b) A further condition that the Commissioner may accept

payment of a development charge at the prescribed
rates in lieu of the provision of the spaces for car
parking. 18
FEDERAL TERRITORY (PLANNING)
ACT 1982 (ACT 267)

Section 40 (3)
The development charge referred to in subsections
(1) and (2) may, in the discretion of the
Commissioner, be levied on
a) the owner of the land to which the development
charge relates; or
b) the person who carries out the development in
respect of which the development charge
relates.
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 FEDERAL TERRITORY (PLANNING)
ACT 1982 (ACT 267)
Section 41 (1)
Before granting planning permission for any
development, the Commissioner shall determine
whether a development charge is payable in respect
of the development and, if payable, the amount
thereof, and shall serve on the applicant for planning
permission an order in the prescribed form
demanding payment of the amount.

Provided that the Commissioner may in his discretion

permit the development charge to be paid by such
number of installments as he deems just together
with interest thereon at such rate as he may fix.
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FEDERAL TERRITORY (PLANNING)
ACT 1982 (ACT 267)

Section 41(2)
Notwithstanding anything in this Act, the Commissioner
may refuse to grant planning permission or revoke any
development order granting planning permission for
any development at any time if the development
charge in respect of such development or any part
thereof remains unpaid.

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FEDERAL TERRITORY (PLANNING)
ACT 1982 (ACT 267)

Section 41 (3)
The Commissioner may at any time vary any order
issued under subsection (1) if he is satisfied that
subsequent to the issue of such order the actual
density, floor area or plot ratio differs from the density,
floor area or plot ratio upon which the development
charge has been based, and shall determine the new
development charge accordingly and make an order to
that effect.
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FEDERAL TERRITORY (PLANNING)
ACT 1982 (ACT 267)

Section 42 (1)
If any person liable for a development charge is
dissatisfied with the order made under subsection (1) or
(3) of section 41 may, within such time and in such
manner as may be prescribed, appeal to the Appeal
Board.

Section 42 (2)
The Appeal Board may, after hearing the Commissioner
and the appellant make such order as it deems fit.

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FEDERAL TERRITORY (PLANNING)
ACT 1982 (ACT 267)

Section 44
The Commissioner shall pay all monies collected under this
Act into the fund constituted under any law relating to local
government and notwithstanding the provisions of that law
relating to the expenditure of monies out of that fund the
Commissioner shall have power to expend such monies
collected under this Act for the purposes of putting into
effect the provisions of this Act :

Provided that any monies collected by virtue of subsection

(2) of section 40 shall not be expended except for the
purpose of providing spaces for car parking in the City.

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RATE OF DEVELOPMENT
CHARGE
 DEVELOPMENT CHARGES RATES
FIRST SCHEDULE
(Rules 2)
TYPE OF DEVELOPMENT PRESCRIBE RATES

1. Development involving an 1. For precincts RM6.00 per square feet.

excess over floor area No. 1,2 and 3
specified in the of CDP
development plan No.1039
2. For any other RM4.00 per square feet of
area excess floor area
2. Development involving an a) Central Commercial Area CDP 1039
excess over the average RM6,000.00 per dwelling unit in excess of the
residential density average residential density specified.
specified in the b) For any other area, RM 4,000.00 per dwelling
development plan unit in excess of the average residential
density per acre.
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 DEVELOPMENT CHARGES RATES
FIRST SCHEDULE
(Rules 2)
TYPE OF DEVELOPMENT PRESCRIBE RATES

3. Development subject to condition RM15,000.00 for each car parking space

requiring the provision of spaces not provided.
for car parking
4. Development involving change of Where the value of land increases as a
landuse which is not in result of the change of landuse, 30% of
conformity with the development the difference in the land value resulting
plan. from such change.
5. Development involving change of Where the value of land increases as a
density zoning result of the change of density zoning,
30% of the difference in the land value
resulting from such change and RM
4,000.00 for every additional unit
resulting from such change.
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EXEMPTION
 EXEMPTION FROM DEVELOPMENT
CHARGES GUIDELINES
TYPE OF DEVELOPMENT PERCENTAGE OF EXEMPTION

1. Education, institution 100% exemption of development charge

and other projects for
public purposes
submitted by
government agencies
2. Religious places
3. Private development by a) 30% exemption of development charge for
wholly owned or with change of land use and increase of the density
51% native equity
b) 30% exemption of development charge for an
excess over the average residential unit and
floor area specified in the development plan

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 EXEMPTION FROM DEVELOPMENT
CHARGES GUIDELINES

TYPE OF DEVELOPMENT PERCENTAGE OF EXEMPTION

4. Development in Malay Reservation •100% exemption of development
areas. charge for change of landuse and
increase of the density

5. Low Cost Housing Schemes • exemption of development

charge for increase of the density

• For housing schemes of various

type, the site area of low cost
houses is considered in calculating
overall density of the housing
schemes excluding low cost units.
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 PAYMENT OF
DEVELOPMENT CHARGE
 PAYMENT OF DEVELOPMENT
CHARGES
• The applicant must pay 20% of the total development
charges before the issuance of the development Order;

• For amounts exceeding RM1,000,000.00 , the applicant is

allowed to pay the development charges by installment
every 3 month within the period not exceeding 24
months or before the completion of the project
(whichever is earlier);

• For amounts less than RM1,000,000.00 , the applicants is

allowed to pay by installments every 3 month with the
period not exceeding 12 months or before the
completion of the project (whichever is earlier);
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 PAYMENT OF DEVELOPMENT
CHARGES
Payment by installments is subjected to an interest rate
at 8% per annum; and

For large scale project, development charges are allowed

to be paid based on the development phases.

Total amount of the development charges must be paid

before the issuance of Certificate of Fitness.

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REFUND OF DEVELOPMENT
CHARGE
 REFUND OF THE DEVELOPMENT
CHARGES
• Development charges are refundable if the applicant has
decided not to proceed with the development.

• No refunds shall be made in respect to applications for

change in landuse zoning or increase in residential density,
unless the applicant can show proof that the land still
belongs to the original owner and no application has been
made to change the category of landuse in the title
document.

• Amounts refundable do not include interest payments

made in respect of the development charges.

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THE END