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Yes. Foreign individuals and foreign companies can buy a factory or industrial land in Johor, but they need approval from the Johor state authority before the transfer. On top of the price, a foreign buyer pays a state approval levy of 4% for industrial property and stamp duty of a flat 4%. The consent is applied for after the SPA is signed and usually takes about three months, so the whole purchase takes about six to seven months.
Singapore and China are the largest groups of foreign buyers in Johor’s industrial market today. This guide sets out the rules that apply to factories, which are different from the rules for houses and condominiums.
Who counts as a foreign buyer?
- A person who is not a Malaysian citizen. Malaysian permanent residents are treated differently in some states, so check with your lawyer.
- A company incorporated outside Malaysia.
- A Malaysian-registered company in which foreigners hold more than half of the voting shares. Setting up a local company does not by itself avoid the consent requirement.
What a foreign buyer pays
| Cost | Rate for industrial property | On a RM5,000,000 factory |
|---|---|---|
| State approval levy (Johor) | 4% of the SPA price; for a subsale, 4% of the price or the JPPH valuation, whichever is higher | RM200,000 |
| Stamp duty on the MOT | Flat 4% of the price or market value | RM200,000 |
| Stamp duty on the loan | 0.5% of the loan | RM15,000 on a RM3,000,000 loan |
| Legal fees | Solicitors’ scale for the SPA, loan and consent application | Ask your lawyer for a quote |
The Johor levy for industrial property is 4% from 1 July 2025, under the PTG Johor circular summarised by L & Co Accountants. The 8% stamp duty for foreigners that started on 1 January 2026 applies only to residential property, according to Skrine, so factories stay at 4%. Our guide to stamp duty on a factory has more examples.
👉 Budget about 8% of the price on top of the purchase for levy and stamp duty, plus legal fees. For a RM5 million factory, that is about RM400,000.
The steps and timeline
- Shortlist and check the title. Your lawyer confirms the land is for industrial use, the tenure, and that the title has no restriction that blocks a foreign owner, such as a Bumiputera lot.
- Booking deposit of 2–3% with the Letter of Offer.
- Sign the SPA and pay up to 10%. The SPA should make the sale conditional on state consent.
- Apply for state consent through your lawyer. This usually takes about three months.
- Completion within three months (plus one month if extended), counted from the date the consent is approved.
- Transfer and keys. The MOT is stamped and registered, and the seller hands over vacant possession.
The full process is explained in our guide on how to buy a factory in Johor.
Things that are different for foreigners
- Bumiputera lots are not available. In new projects, some units are reserved for Bumiputera buyers. If they remain unsold, the developer can apply to release them.
- Financing is harder. Malaysian banks lend less to foreign buyers and ask for more documents. Many foreign companies pay cash or arrange financing at home.
- Selling later. Foreign owners pay RPGT of 30% if they sell within five years and 10% after that. See RPGT when selling a factory.
- Minimum prices. Johor sets minimum purchase prices for foreign buyers, mainly for residential property. Ask your lawyer for the current figure for the factory or land you want.
Buy or rent first?
Many foreign manufacturers rent before they buy. A tenancy is quicker (a few weeks, with no state consent for a normal tenancy of up to three years), costs much less upfront, and lets the company test the location and workforce. Buying makes more sense when you need a long-term base, plan major fit-out such as cleanrooms or heavy cranes, or want to own the asset in a growing area. Long registered leases of industrial land by foreigners also carry the 4% levy on the lease value.
Factory rent in Johor is around RM2.50 per sq ft a month. Browse factories for rent in Johor to compare.
Setting up your business in Johor
Buying the factory is only one part. A foreign manufacturer will usually also need a Malaysian company, a manufacturing licence from MIDA if it has shareholders’ funds of RM2.5 million or more or at least 75 full-time employees, a business licence from the local council, a Bomba fire certificate and, for some industries, Department of Environment approvals. See our guide to licences you need to run a factory in Johor. Incentives under the Johor–Singapore Special Economic Zone can also affect where you choose to buy.
Frequently asked questions
Can a Singaporean buy industrial land in Johor?
Yes, with state consent, the 4% levy and 4% stamp duty. Industrial land is often bought by foreign companies to build their own factory or data centre. See our guide to Johor industrial land prices.
Does a foreign-owned Malaysian company need consent?
Usually yes, if foreigners hold more than half of the voting shares. A company that is majority Malaysian-owned is treated as a local buyer.
How long does state consent take in Johor?
Usually about three months after the application is submitted with complete documents. Incomplete documents are the most common cause of delay.
Looking for a factory or land in Johor? Browse factories for sale in Johor, or contact Jimmy Toh to discuss your requirements.
This article is general information, not legal or tax advice. Rates and rules change, so please confirm the details with your lawyer or tax agent before you sign.
