|
| 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
Citys 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 Citys
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 |
| 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. |
| 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. |
| 341. |
Service industries, which include
motor vehicle repairs, storage facilities and warehousing, are necessary
to serve the Citys 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 Citys population
|
| 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 |
| 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. |
| |
Weak inter-industrial linkages. |
| d)
|
Unrationalised
industries |
| 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. |
| 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. |
| a)
|
Condition
of industrial areas |
| 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. |
| 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 |
| 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. |
| |
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. |
| 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. |
| 9.4.1 |
Industrial
sector development |
| 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 Lumpurs 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. |
|
| 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. |
|
| 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 |
|