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Kuala Lumpur Structure Plan 2020

Preface

Acknowledgement

1 Introduction

2 International and National Context of Growth

3 Vision and Goals of Kuala Lumpur

4 Economic Base and Population

5 Income and Quality of Life

6 Land Use and Development Strategy

7 Commerce

8 Tourism

9 Industry
  9.1 Introduction
  9.2 Existing situation and issue
    9.2.1 Industrial sector development
    9.2.2 Industrial areas
  9.3 Objective
  9.4 Policy and proposal
    9.4.1 Industrial sector development
    9.4.2 Industrial area development
  9.5 Future requirement

10 Transportation

11 Infrastructure and Utilities

12 Housing

13 Community Facilities

14 Urban Design and Landscape

15 Environment

16 Special Areas

17 Strategic Zone

18 Implementation

Abbreviations

Glossary

FAQ
9.1 Introduction

337. The industrial sector in Kuala Lumpur is undergoing a transformation as the City, in tandem with the MSC, takes the lead in moving Malaysia into the K-Economy. Large scale manufacturing industries that used to be the industrial mainstay of the City are no longer relevant to its new role as an international commercial and financial centre.
338. Although industry now plays a relatively minor role in the economy of the City compared to the commercial sector, an industrial component will be necessary to service the population of Kuala Lumpur and provide support services to commercial enterprises in Kuala Lumpur and its conurbation (KLC). In addition, CHKL aims to bring about an industrial renaissance that will revitalise the City’s industrial sector by encouraging industries that are clean and requiring a highly skilled labour force, in particular those at the forefront of the new technologies. Research and Development (R&D) and higher skills training are essential components in this shift of emphasis towards knowledge-based industrial development, as is the need to adopt a more integrated approach towards industrial development. As part of this strategy, and in order to enhance the City’s living environment, emphasis must be placed on the renewal of the older industrial areas of Kuala Lumpur and the eradication of illegal and polluting industries.

9.2 Existing situation and issue
 9.2.1  Industrial sector development
 a)  Manufacturing sector
 i.  Existing situation

339. Between 1984 and 1998, industrial land use grew by 19 percent from 579.5 hectares to 690.2 hectares. Industrial land use represented approximately 2.4 percent of total land use in 1998. Manufacturing constituted about 66 percent of the total number of industrial establishments with service related industries accounting for the rest. Fabricated metal products, paper, paper products, foundries, printing and publishing made up the majority of
manufacturing establishments while motor vehicle repairs, storage and warehousing predominate in the service related industries. The larger manufacturing establishments are tending to relocate outside of Kuala Lumpur mainly because of the scarcity and high cost of land in the City.

 ii.  Issue

340. Despite the decline in manufacturing, there is still a sizeable manufacturing component in Kuala Lumpur. A large number of these industries are incompatible industries that do not comply with current regulations.

• Incompatible manufacturing industries.

 b)  Service industries
 i.  Existing situation

341. Service industries, which include motor vehicle repairs, storage facilities and warehousing, are necessary to serve the City’s population who cannot rely entirely on such services outside its boundary.
 

Photo 9.1: Service related industries, which include motor vehicle repairs, storage facilities warehousing, are necessary to serve the City’s population…

 ii.  Issue

342. Although these industries such as motor vehicle repair workshops are clustered together in many locations throughout the City, they are widely dispersed and lack adequate infrastructure and facilities. In many cases these industries have not been properly planned for and some are illegal. Many are located in between residential areas and shop houses causing disturbance to the local community, pollution and traffic congestion.

• Service industries are scattered in unsuitable locations that cause environmental pollution and traffic congestion.
343. As vehicle ownership has increased, so has the demand for motor repair workshops and other related auto services. While some of these establishments are located in industrial areas, others are located in commercial areas. The provisions of the Use Classes Rule allow for industrial establishments under 200 square metres or with fewer than 20 machines to occupy commercial premises. As a result, motor repair workshops and other industries not compatible with their surroundings often occupy shop houses in commercial areas.

• Use Classes Rule does not prevent incompatible industries from locating in commercial areas.

 c)  Inter-industrial linkages
 i.  Existing situation

344. More than 90 percent of the industrial establishments in the City are small in size. On average the land area occupied per establishment is only 0.24 hectares. Approximately 8 percent of the industrial establishments in Kuala Lumpur are more than 30 years of age and about 36 percent are owned by single entrepreneurs. The vast majority of these small-scale industries operate independently with virtually no inter-industrial linkages.

 ii.  Issue

  • Weak inter-industrial linkages.

 d)  Unrationalised industries
 i.  Existing situation

345. The majority of manufacturing industries operating in Kuala Lumpur are related to the manufacture of machinery, plastics, foundries and printing. Only about 61 percent of existing manufacturing industries are operating in approved
industrial areas.

 ii.  Issue

346. Approximately 28 percent of the existing manufacturing industrial establishments are located in commercial buildings within designated commercial land use areas. Of these establishments, a substantial number violate the floor space conditions stipulated in the CHKL operational guidelines. Another 11 percent are located in residential areas mainly in Jinjang, Bukit Indah and Bukit Jalil.

• Industries occupying commercial buildings or located in residential areas.
347. Several industrial areas are located very close to the river systems, especially those in Jinjang, Bukit Indah and Chan Sow Lin. This causes problems relating to environmental control and management in respect of garbage and industrial waste disposal, blockages to water flow and cleanliness.

• Inappropriate location of polluting industries close to river systems.
348. There are also industries operating without licenses and licensed industries squatting on government land mainly alongside rivers and major highways.

• Industrial squatters on government land.
349. Besides the activities of collection and selling of junk and used goods operating close to residential and main roads also contribute to visual, sound and environmental pollution.

• Industries located in unsuitable areas for quality city living environment.

 9.2.2  Industrial areas
 a)  Condition of industrial areas
 i.  Existing situation

350. Figure 9.1 and Table 9.1 indicate the distribution of existing and committed industrial areas in Kuala Lumpur. About 80 percent of the existing manufacturing establishments are located in Bukit Indah, Jinjang, Bukit Anggerik, Chan Sow Lin, Sentul, Bandar Tun Razak and Seputeh while the majority of existing service related industrial establishments are located in Jinjang, Bukit Anggerik and Sentul. The majority of industrial land use is located in Jinjang, Bukit Indah, Maluri and Bukit Jalil.
 

Figure 9.1 : Distribution of industrial areas by status, 2000
 

Table 9.1: Industrial Floor Space by Status, 2000
351. Since 1984, relatively few new industrial estates have been developed. A notable exception is the Technology Park Malaysia in Bukit Jalil which covers about 280 hectares and which is being developed in three phases as a high technology industrial park. The three phases shall accommodate three major sectors i.e. engineering, biotechnology and communication technology, each containing resource, innovation, incubator, R&D, ICT and multimedia centres and housing.

 ii.  Issue

352. Many of the older existing industrial areas especially Chan Sow Lin, Jinjang and the Old Klang Road are in a very dilapidated state and lack basic infrastructural facilities.
353. In Jinjang, some of the industrial areas are located in shop houses or residential areas and there are also many illegal industries. These areas contribute to traffic congestion, jeopardise public safety, constitute serious fire risks and create unhealthy conditions.

• Many of the older industrial areas in Kuala Lumpur are obsolete and lack basic facilities.
 

Photo 9.2: ...the Technology Park Malaysia in Bukit Jalil containing resource, innovation, incubator, R & D, ICT and multi-media centres and housing.

 b)  Facilities in industrial areas
 i.  Existing situation

354. According to the Kuala Lumpur Industrial Survey 1999, there were a number of inadequacies in existing industrial areas.
355. There is inadequate housing for workers in industrial areas except in Chan Sow Lin and there is also a lack of recreational facilities. Banking facilities such as automated teller machine services are generally not available in industrial areas. None of the industrial areas in Kuala Lumpur have any properly planned hygienic hawker or food centres and only 2.4 percent of industrial premises have workers’ canteens within their establishments. Only 26 percent of the industrial premises provide car and motorcycle parking facilities.

 ii.  Issue

  • Inadequate public facilities in industrial areas.
356. Public transportation services to most of the existing industrial areas in Kuala Lumpur are inadequate.

• Inadequate public transport services to industrial areas.
357. Loading and unloading facilities are available in only 24 percent of the factory premises.

• Insufficient loading and unloading facilities.

9.3 Objective

358. For Kuala Lumpur to become an International Commercial and Financial Centre, CHKL aims to:

• promote the development of industries related to the K-Economy;

• promote high-end industries employing highly skilled workers;

• provide to all residents a wide range of employment and business opportunities; and

• maintain a sectoral balance in industrial development.
359. To create an efficient and equitable city structure for Kuala Lumpur, CHKL aims to:

• achieve an optimum distribution of industrial areas in the City; and

• ensure that industrial land use is integrated with road and public transportation networks.

9.4 Policy and proposal
 9.4.1  Industrial sector development
 a)  Manufacturing sector

360. The proximity of Kuala Lumpur to the MSC will have a profound effect on the types of industries that will develop in Kuala Lumpur in the future. There will be opportunities to develop high technology and knowledge-based industries that are auxiliary to or support enterprises in the MSC. R&D centres associated with high technology industries will be encouraged in designated areas in the City.
361. CHKL shall encourage industries that have a high design and skills content. Such industries shall include those specialising in the manufacture of musical instruments, electronic toys, fashion, jewellery making and handicrafts. These kinds of industry have excellent export potential and could be well linked to commercial enterprises in the City.
362. The new direction for industry in Kuala Lumpur will rely on a plentiful skilled labour force. High technology skills training facilities are currently available in the Technology Park Malaysia and there are other institutes such as the German- Malaysian Institute offering specialist skills training. CHKL shall encourage the development of further high skills training facilities both within established institutions and in the new business and industrial parks.
 

Photo 9.3: CHKL shall encourage the development of further high skills training facilities…
 
Policy
IN 1 : CHKL shall encourage the development of high technology and knowledge-based industries.
363. In order to maintain a sectoral balance in the economic base, the City will continue to maintain a small manufacturing sector specialising in high technology industries.
 

Photo 9.4: ...will continue to maintain a small manufacturing sector specialising in high technology industries.
 
Policy
IN 2 : CHKL shall maintain a small manufacturing component related to high technology industries.
364. Manufacturing industries that are not compatible with Kuala Lumpur’s industrial strategy and objectives must relocate away from the City.


Policy
IN 3 : CHKL shall ensure that there shall be no incompatible manufacturing enterprises in the City.

 b)  Service industries

365. Automobile business parks shall be established in strategic locations, including a designated area in Chan Sow Lin, to enhance environmental management as well as provide efficient customer services. These parks shall provide ‘one-stop centre’ facilities for the operations of motor repair workshops, second-hand car sales and parking areas, showrooms, auto-parts and accessories shops, vehicle spraying workshops, vehicle services, vehicle refurbishment centres and provision for other related services that will enhance automobile businesses.


Policy
IN 4 : CHKL shall designate strategic locations as automobile business parks.
 

Photo 9.5: Automobile business parks shall be established in strategic locations…
366. Compatible service industries should be encouraged at neighbourhood and district centres for the convenience of residents, together with other small-scale light industries that can provide employment opportunities for those living nearby.
367. However, the Use Classes Rule shall be reviewed to ensure that polluting and hazardous industrial activities are not permitted in commercial areas.


Policy
IN 5 : CHKL shall review the Use Classes Rule.

 c)  Inter-industrial linkages

368. Small and Medium Industries (SMIs) require support services through which they can develop effective networking and to enable them to draw from available resources such as capital sourcing, human resource development training facilities and information regarding regulations governing their operations.


369. In addition, support facilities to foster and strengthen customer-supplier-producer linkages for the service related industries should be provided, so as to ensure a healthy service industry that is able to serve the population effectively.


Policy
IN 6 : CHKL shall coordinate with government agencies and the private sector to provide networking and support services for the growth of Small and Medium Industries.

 d)  Unrationalised industries

370. Unrationalised and illegal industries are undesirable elements in the City and should be phased out. However, many of these industries are light service industries that contribute to the economy of the City and need to be accommodated in more suitable locations.


Policy
IN 7 : CHKL shall designate areas to accommodate light service industries.
371. In areas where industrial establishments are close to river systems, the redevelopment process shall include efficient environmental control and management measures that prevent polluting the river systems.


372. Policies relating to river pollution are covered in Chapter 15: Environment.
373. Industries unsuitable for quality city living environment such as collection and selling of junk and second hand goods need to be removed out of Kuala Lumpur.


Policy
IN 8 : CHKL shall not allow industries to be located in areas unsuitable for quality city living environment.

 9.4.2  Industrial area development
 a)  Zone-based industrial development

374. In order to regulate the expansion of industrial development, CHKL shall adopt a zonal approach by designating three distinct industrial zones (refer Figure 9.2).


375. The northern industrial zone that concentrates on engineering services and production industries comprises Jinjang, Bukit Maluri, Wangsa Maju, Sentul and Setapak. This zone is reasonably close to the Malaysian second car plant in Serendah and the proposed Proton City in the Bernam Valley. Activities related to automobile services, food processing, printing, warehousing, handicraft and packaging are expected to be the main industry in this northern zone. Support industries to cater for local needs and fabricated metal products are also encouraged.
376. The central industrial area comprising the City Centre, Damansara and Penchala, emphasizes on services specialising in fashion, handicraft and printing industry.
377. The southern industrial zone comprising Bukit Jalil, Bukit Indah, Bukit Anggerik, Seputeh, Bandar Tun Razak and Chan Sow Lin, concentrates on R & D, services and manufacturing. This zone is adjacent to the MSC and is also easily accessible to the KLIA. The MSC and the Technology Park Malaysia at Bukit Jalil provide opportunities for R&D cluster such as engineering, communication and technological information and bio-technology, printing, warehousing, food processing, automobile services and packaging.
378. The industrial development in all three zones shall be encouraged to take advantage of current development in their hinterland.


Policy
IN 9 : CHKL shall implement a zone-based industrial development strategy complementing prevailing subregional developments.

 b)  Industrial area infrastructure development

379. Measures shall be implemented to provide all industrial areas with proper basic infrastructure, services and facilities including wider roads, improved loading and unloading facilities, better drainage systems, parking and public transport facilities, as well as suitable commercial enterprises, banking facilities, food courts and recreational areas.


 

Figure 9.2 : Proposed industrial zones
 
Policy
IN 10 : CHKL shall ensure that all designated industrial areas are provided with adequate public facilities including parking for heavy goods vehicles.
 

Photo 9.6: Measures shall be implemented to provide all industrial areas with proper basic infrastructure, service and facilities including wider roads, improved loading and unloading facilities...

 c)  Industrial development close to transit terminals

380. Transit oriented development is a cornerstone of the development strategy. Development policies shall aim to ensure that residential areas, services and commercial facilities shall, as far as is possible, have easy access to transit facilities. Where appropriate this strategy shall also include industrial areas particularly those where there is high employment. Feeder bus services in these industrial areas shall link to the rail-based public transport system.


Policy
IN 11 : CHKL shall encourage the development of new industrial areas and the redevelopment of older industrial areas which are near to transit terminals.

9.5 Future Requirement

381. Projected future requirements for industry forecast an overall increase in floor space with high technology and highly skilled clean industries gradually taking the place of the older manufacturing industries. The main areas of growth will be in Sentul - Menjalara and Bukit Jalil - Seputeh. Service industries that serve the population of Kuala Lumpur will be distributed evenly across the six strategic zones.
 

Table 9.2: Projected Industrial Requirement, 2020