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ICI Final Project- Project Proposal
Location: Paya Berenjut, Taman Banggol Indah, 24000
Kemaman, Terengganu, Malaysia.
Lim Zi Shan 0320
Lee Ning 0320125
Tutor: Ms Iffa Nayan
Content
Page cover
Group Work
Key plan and Location plan
Introduction to site
Site plan and Site context
Site images
Ste inventory and Analysis
Proposal 1
Rationale of project
Benefits of project
Perspective of recreational area
Bubble Diagram
Conceptual plan
Master plan
Proposal 2
Rationale of project
Benefits & Impact of project
Perspective of commercial area
Bubble Diagram
Conceptual plan
Master plan
3D rendering of commercial area
Estimate costing
Procedure to propose a commercial area
Conclusion
Key plan
Location plan
Introduction to the site
The site is a defoliated area located behind the hall, in Banggol
Indah, Kemaman, Terengganu. It is surrounded by residential buildings
and is currently undeveloped.
Site plan
Site context
Site images
Site inventory & Analysis
Topography
The site is relatively flat
Microclimate
Sunrise from East and set to West
Winds flow from East-south to North- west
Average temperature of site: 26-31 degree Celsius
Drainage
The main drainage is located at the southern of the site
Existing Structure
Abandon or leftover construction materials
Views
House lots of residential area
Town hall
Green plants beside the site
Potential & Strengths
The first potential of this land is the strategic location. It is located at the
centre of the Residential Area. However it was defoliated. The land is
nearby the town hall and some green plants beside. The size of this land
is approximately 30 x 40 𝑚2
(1200𝑚2
). Besides that, it is nearby a park
and all along the road.
Weakness & Threats
It is a waste that this land is being abandoned and placed with some
abandoned and leftover construction materials. Some water spots were
found in this area too.
Proposal 1
Recreation area
By: Lim Zi Shan
Suggestion
Proposing a recreation area on a 30m x 40m of defoliated land located in Kemaman,
Terengganu.
Rationale
The word ‘ recreation ‘ was to bring the means of “refresh oneself from some
amusement “ back in c.1400. Recreation is difficult to separate from the general
concept of play. It has been suggested that play or recreational are outlets of or
expression of excess energy, channeling it into socially acceptable activities that
fulfill individual as well as societal needs. Recreation is an essential part of human life
and finds many different forms which are shaped naturally by individual interests but
also by the surrounding social construction.
Most of the families nowadays are more focused on making money to
support their family. They have seldom time to be with their family and this kind of
situation will easily cause misunderstanding between family members due to
miscommunication.
The reason I chose to construct a recreation area is because I hope that
residents of Banggol Indah can relieve themselves from the stress they received from
work and enjoy pleasurable time with their family. Also, recreation activities can be
opportunities for solitude, enjoying nature and learning. Recreation areas are part of
the community’s identity, pride and health. People live in those communities because
they enjoy the stress relieve, aesthetics and quality of live provided by recreational
areas.
Structure
The center part of the site is the exercise area where there are various kinds
of outdoor exercising facilities for seniors and adults. It is to encourage residents of
Banggol Indah to exercise more and strengthen their physical health instead of staying
indoors after work or during weekends.
There is also a lake with a bridge above it next to the exercise area. The
purpose of the lake is to provide outdoor activities for residents such as fishing and
also to lower the temperature around the recreation area as the weather are worse
nowadays.
A big playground is also included in the site as to provide fun for the
children. Parents could spend more time with children hence strengthening family
bond. This is also a chance for residents of Banggol Indah to know each other.
There is also a flower clock surrounded by flower beds next to the lake.
Visitors can enjoy the scenery of flower beds and rest at the sitting-out area. The
purpose of this flower clock is to add some brightness to the recreation area.
There are also barbeque areas for families to enjoy time together or friends
hanging out by throwing a barbeque party. The area is free for all and users have to
clean up after using it.
The proposed recreation area are mostly green spaces to purify the air. Green
spaces are essential in reducing pollutions. Young generations can also learn more
about nature and blend themselves into nature.
Benefits
Economic Benefits
Open spaces such as parks and recreation areas can have a positive effect on
nearby residential property values, and can lead to proportionately higher property tax
revenues for local governments.
The level of economic impact recreational areas have on home prices depends
on how far the home is located from a park, the size of the recreational area and the
characteristics of the surrounding neighbourhood.
Open space land, recreation areas and compact developments may provide
fiscal benefits to municipal governments.
Physical Health Benefits
Obesity
Obesity is a major health concern and is closely linked to physical
inactivity. Obese individuals had a lower incidence of disease and mortality than
normal-weight individuals. Exercising activities can help curb obesity hence
reducing the percentage of having obesity.
Strengthen Immune System
A physically fit person is less prone to sickness. Research shows that
positive changes in the immune system occur during moderate exercise. By
participating in community activities and surrounding themselves with family and
friends, they increase in positive moods, which have been linked to enhanced
immune responses.
Mental Health Benefits
Reduce Depression
Recreation and leisure activities can help alleviate depression. Recreation
activities reduce alienation, loneliness and isolation, all of which contribute to
depression. Mentally recalling outdoor recreation activities increases positive moods
which are linked to improved self-esteem, lowered depression and reduce suicide
rates.
Reduce Stress
No one is immune to stress which we all experience at some point in our
lives. Positive and enjoyable recreation experiences can decrease stress, anxiety and
psychological tensions. Stress reduction also comes from group activities that
strengthen social ties and the calming effects of desirable outdoor settings.
Social Benefits
Strengthen communities
Recreation brings neighbours together, encourages safer, cleaner
neighbourhoods and creates a livelier community atmosphere. Recreational facilities
also help improve a community’s image, socioeconomic status and enhance the
area’s desirability.
Promote social bonds
Families that recreate together tend to be closer and more cohesive, and
have a greater chance of staying together. During recreation and leisure time, people
are less concerned with differences and more concerned with having fun. The
strength of a community is increased through recreation activities that allow people
to share their cultural and ethics differences.
Environmental Benefits
Parks and recreation areas are proven to improve water quality, protect
groundwater, prevent flooding, improve the quality of the air we breathe, provide
vegetative buffers to development, and provide a place for children and families to
connect with nature and recreate outdoors together.
SWINGS
LAKE
SPRING RIDES
BARBEQUE AREA
BRIDGE ABOVE THE LAKE
FLOWER BEDS
SITTING OUT AREA
FLOWER CLOCK SITTING-OUT AREA
SEE-SAW
OUTDOOR GYM
PLAYGROUND
PALM TREE
Proposal 2
Commercial Area-
Mini Mart
By: Lee Ning
Rationale
This mini mart will be located at the centre of the residential area. The main objective
to build a mini mart in this residential area is to provide an easy access for the
residents around to buy their daily object. With the appearance of this mini mart,
residents can save their time by going to buy groceries from this market rather than
the supermarket or other commercial block which is located in the city.
This mini mart will be a three storey mart. The ground floor will be the wet market
which provide fresh meat, chicken, fish, and prawn and also conclude a non- halal
cold storage which provide non- halal food. The first floor will provide the fresh
vegetables and fruits. The cold storage is also located at the first floor. Lastly, the dry
food like cereal, rice, bread, biscuits and so on will be collocating at the second floor.
Benefits
This mini mart will confidently provide conveniences to the community especially the
housewives and also the elders as it provides an easy access for the residents to buy
groceries. This mini mart will also provide job vacancies in the residential area.
Besides that, these will also benefit the owner of the land. This is because the owner
can obtain a stable profit from the community as long as the prices of the items are
reasonable. Therefore this kind of mini mart will surely create a win-win situation to
the owner and residents.
Impact
However, this project will also bring some negative effect to the residential area. As
this mini mart is not an existing structure, there will be a sound pollution to the
residential area during the construction. Besides that, there might be a road block
during the phase of construction which will definitely affect the usual lifestyle of the
residents. Lastly, arrival of this building will block the scene of the green zone from
some residential area.
Perspective in the Mini Mart
Procedure to propose a commercial area
1. Business registration
a. Incorporating a limited liability/ public company (for more information
www.ssm.com.my)
2. Principal approval
a. Foreign owned specialty store: approval of Ministry of Domestic Trade,
Cooperatives and Consumerism (KPDNKK) is required for the
establishment of a foreign-owned departmental store (for more
information www.kpdnkk.gov.my)
3. Premise
a. Renting a premise: advised to enter into a tenancy agreement
b. Renovating a premise: subjected to Local Council’s approval (for more
information www.dbkl.gov.my)
c. Constructing a building: required to obtain Construction Approval
from a Local Council to construct a building. Also required to engage
Professional Architects/ Engineers to facilitate the application. (for
more information www.dbkl.gov.my)
4. Registering with government authorities
a. Required to register with:
i. EPF (Employee Providence Fund)
ii. SOCSO (Social Security Organisation)
iii. IRBM (Inland Revenue Board Malaysia)
iv. PSMB (Pembangunan Sumber Manusia Berhad)
5. Operational Approval
a. Work permit: From Immigration Department
b. Premise license
c. Fire safety inspection
d. Occupational Safety and Health notification: Required to notify
Department of Occupational Safety and Health (DOSH)
e. Advertisement license
f. Food handling premise registration: Registration with Ministry of
Health
g. Food handling permit: Food handlers are to undergo yearly medical
examination
h. Liquor license
i. Cheapsale notification: Required to notify KPDNKK
j. Weighing machine license: Required to apply with KPDNKK
k. CE standard notification: Required to notify KPDNKK
l. Control items license
m. Publication permit
n. Entertainment permit
o. Halal certification
p. Hosting machine permit
q. Certification of approval: Recognised by Energy Commission
r. Resell electricity license: Apply license from Energy Commission
6. Taxation
a. Corporate tax: Pay to IRBM
b. Individual/ Employee Income Tax: Required to facilitate employees’
income tax with IRBM
c. Service tax license & Service tax: Apply from Royal Malaysia
Customs Department-must be paid to custom
d. Property taxes: Required to pay Assessment tax at Local Council and
Quit Rent Tax to Land Office annually
The relevant stages of development process are as
follows:
(1) Initiation Stage
The commencement point of land development process is when a land is considered
suitable for a different or more intensive use or demand for a particular use leads to a
search for a suitable site by an initiator. The initiator can be the landowners
themselves who in turn may also assume the role of the developer at the proceeding
stage. In some cases, the initiator is the public sector and government agencies who
also sometimes play the role of the developer. An accountant also usually features at
this stage to provide advice to the developer and public sector on structure of
partnership.
Another main actor in this stage is the commercial agent or estate agent who can
identify the right site that meets the requirement of a developer’s property
development portfolio or criteria and by bringing together some of the main actors in
the process. An agent is also often involved in every proceeding stage which is
outlined afterwards.
(2) Evaluation
This is the stage whereby action taken under the form of market research and financial
appraisal guides the developer in making decisions throughout the process. At this
stage, the developer is supported by a professional or an economic consultant in the
person of registered property valuers or appraisers. Upon instruction, they will
prepare a detailed analysis of the characteristics of the market in terms of the
underlying demand and competitive supply in what is called the market and feasibility
study.
(3) Acquisition
This stage actually begins with legal investigation of the site on issues such as land
ownership and planning permission, proceeding with ground investigation which is a
thorough assessment on the physical attributes and capabilities of the site to
accommodate the development, and ending with sourcing and obtaining financing and
funding for the acquisition and development exercises.
The developer can either carry out the legal investigation of the site on its own or
engage a lawyer (solicitor) to conduct the task. A solicitor also plays a role in
preparation of legal agreements of funding arrangement entered into by the developer.
The public sector may also become involved in this stage in situations where a large
site with many occupier and landowners need to be assembled since as the
government, they can use their legal powers of compulsory purchase to acquire the
site.
An accountant also features at this stage by providing advice to the developer or
public sector on the structure of project funding or financing arrangement. In most
cases, financial institutions are the providers of finance in land and property
development in terms of development finance (short term money) and long term
money or financing the cost of holding the completed development as an investment.
Alternatively, in land/property development of Sell-Build-Transfer type, the
developer may finance its development project by seeking a buyer for the completed
scheme to repay the short-term loan and realize any profit.
(4) Design and costing
This is the stage where the preparation of plans and cost estimates for the proposed
development is undertaken generally carried out simultaneously with various other
stages of development process.
At this stage, if the developer is a large corporate entity already having the qualified
professional staff in its stable, then the preparation of the plans and estimates can be
said as to be prepared in-house by the developer itself. However, it is also common
practice, as in the case with the public sector and some private developers to engage
an outside professional team at this stage comprising the following consultants:
i. Architects
Architects main role in this stage is designing the appearance and construction of
new buildings and refurbishment of existing building. In some cases they also
administer the building contract on behalf of the developer.
ii. Quantity surveyors
This consultant (also termed as ‘building accountant’ by Cadman and Topping) plays
the role of advising the developer at this stage on the likely costs of the total building
contract and associated costs by performing:
- costing the designs produced by the architect,
- administering the building contract tender, and
- advising on the most appropriate form of building contract.
iii Building surveyor
In re-development involving refurbishment works, building surveyors are engaged to
survey the existing building and advice on the alterations to be made to the developer
(5) Permissions
This is the stage where statutory planning permission (preliminary outline planning
consent followed later on by detailed planning consent) from the local planning
authority before commencing with the actual development is obtained. In some cases
and depending on the original status of the acquired land, the landowner or developer
has to apply from the state authority for conversion and sub-division of the land
before the land can be developed. Land Surveyors will play their role in survey and
measurement of the land. Planners in the form of politicians are responsible for
approving the development plans drawn up by professionals in accordance with
policy which they have earlier set down, and approving and refusing the applications
for permissions for development proposals.
Planners in the form of professionals or Planning Consultants on the other hand come
up with the development plans on behalf of the developer and the ones who will
negotiate with the local planning authority as to the permission that allow for the
‘highest and best use’ development particularly with large or sensitive schemes. This
planning permission can also be obtained by an Architect if a planning consultant is
not employed.
(6) Commitment
This is the stage where the land development really starts to materialize in the form of
signed agreements on matters such as inputs of land, finance, labour and materials and
statutory permissions.
Various actors and sub-actors that have been mentioned before will come together at
this stage performing their associated roles as follows:
i. Landowners, public sector and developer as the main actors in the
commitment depending on the structure of partnership on the land development.
ii. Lawyers / solicitors in overseeing the signed agreements, tenders and
contracts between the developer and building contractor and its professional team of
consultants such as architects, quantity surveyors and engineers
(7) Implementation
This is the stage when all the raw materials of the development process are in place.
Once again various actors and sub-actors that have been mentioned before will come
together at this stage performing their relevant roles as follows:
(1) Architects administer the design and build contracts and certify completion
of the building works.
(2) Quantity surveyors monitoring the construction and approving stage
payments to the contractor, and participating in the administration and management of
design and build contracts.
(3) Building contractors are the main actor in this stage by undertaking the
construction of the development scheme. A building contractor who undertakes and
oversees this entire stage of land development is also called the ‘Turnkey Contractor”.
With relevant expertise, this building contractor may also be the management
contractor who manages the various usb-contractors for the developer. The developer
itself can be the builder if it has the necessary in-house expertise or keep its
contracting division as a subsidiary company with an entirely separate profit-making
centre.
(3) Engineers are involved in this stage in the construction of improvements
on the land. There are three types of engineers involved in this stage:
1) Civil engineers role is in supervising major infrastructure works and/or
ground work.
2) Structural engineers role is in advising architects and quantity
surveyors as to the design of the structural elements of the building.
3) Mechanical and electrical engineers are the team that designs all the
services within building of large and complex schemes.
(4) Project managers are normally employed if the land development schemes
are large and complicated to manage the professional team and the building contract
on behalf of the developer.
(8) Let / manage / dispose
This is the stage of securing a willing occupier of the end-product of the development
at the estimated rent or price by way of letting or outright sale. Depending on the type
of development, this stage proceeds immediately after initiation stage as in the case of
sell-build-transfer type of development which is of the norm in Malaysia. The main
actor at this last stage (which can also be the first stage depending on the type of the
development) is the property or estate agent who is the link between the developer
and the occupier. Agents may also be used by developers to assist them in securing
the finance for a development scheme. The agents are professionals who include
chartered surveyors, registered valuers and licensed real estate agents.
Apart from the above-mentioned, there are other actors who are also involved in the
development process depending on their area of expertise and the scale of the
development. This includes highway engineers, landscape architects, soil specialists,
public relations consultants and marketing consultants.
In practice, the land development process also does not always rigidly follow the
sequence of stages as mentioned above. Some stages may overlap and occur
simultaneously.
Estimate cost for the project= RM 2,000,000- 2,500,000
Conclusion
After comparing the benefits and the impact of this project, the benefit is greater than
the impact. This is because the impact will only affect for once awhile but it will
provide a long-term benefit. In the conclusion, this project is a worthwhile project to
be considered.

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ICI Final Project Proposal for Recreation and Commercial Areas

  • 1. ICI Final Project- Project Proposal Location: Paya Berenjut, Taman Banggol Indah, 24000 Kemaman, Terengganu, Malaysia. Lim Zi Shan 0320 Lee Ning 0320125 Tutor: Ms Iffa Nayan
  • 2. Content Page cover Group Work Key plan and Location plan Introduction to site Site plan and Site context Site images Ste inventory and Analysis Proposal 1 Rationale of project Benefits of project Perspective of recreational area Bubble Diagram Conceptual plan Master plan Proposal 2 Rationale of project Benefits & Impact of project Perspective of commercial area Bubble Diagram Conceptual plan Master plan 3D rendering of commercial area Estimate costing Procedure to propose a commercial area Conclusion
  • 4. Introduction to the site The site is a defoliated area located behind the hall, in Banggol Indah, Kemaman, Terengganu. It is surrounded by residential buildings and is currently undeveloped. Site plan Site context
  • 6. Site inventory & Analysis Topography The site is relatively flat Microclimate Sunrise from East and set to West Winds flow from East-south to North- west Average temperature of site: 26-31 degree Celsius Drainage The main drainage is located at the southern of the site
  • 7. Existing Structure Abandon or leftover construction materials Views House lots of residential area Town hall Green plants beside the site
  • 8. Potential & Strengths The first potential of this land is the strategic location. It is located at the centre of the Residential Area. However it was defoliated. The land is nearby the town hall and some green plants beside. The size of this land is approximately 30 x 40 𝑚2 (1200𝑚2 ). Besides that, it is nearby a park and all along the road. Weakness & Threats It is a waste that this land is being abandoned and placed with some abandoned and leftover construction materials. Some water spots were found in this area too.
  • 10. Suggestion Proposing a recreation area on a 30m x 40m of defoliated land located in Kemaman, Terengganu. Rationale The word ‘ recreation ‘ was to bring the means of “refresh oneself from some amusement “ back in c.1400. Recreation is difficult to separate from the general concept of play. It has been suggested that play or recreational are outlets of or expression of excess energy, channeling it into socially acceptable activities that fulfill individual as well as societal needs. Recreation is an essential part of human life and finds many different forms which are shaped naturally by individual interests but also by the surrounding social construction. Most of the families nowadays are more focused on making money to support their family. They have seldom time to be with their family and this kind of situation will easily cause misunderstanding between family members due to miscommunication. The reason I chose to construct a recreation area is because I hope that residents of Banggol Indah can relieve themselves from the stress they received from work and enjoy pleasurable time with their family. Also, recreation activities can be opportunities for solitude, enjoying nature and learning. Recreation areas are part of the community’s identity, pride and health. People live in those communities because they enjoy the stress relieve, aesthetics and quality of live provided by recreational areas.
  • 11. Structure The center part of the site is the exercise area where there are various kinds of outdoor exercising facilities for seniors and adults. It is to encourage residents of Banggol Indah to exercise more and strengthen their physical health instead of staying indoors after work or during weekends. There is also a lake with a bridge above it next to the exercise area. The purpose of the lake is to provide outdoor activities for residents such as fishing and also to lower the temperature around the recreation area as the weather are worse nowadays. A big playground is also included in the site as to provide fun for the children. Parents could spend more time with children hence strengthening family bond. This is also a chance for residents of Banggol Indah to know each other. There is also a flower clock surrounded by flower beds next to the lake. Visitors can enjoy the scenery of flower beds and rest at the sitting-out area. The purpose of this flower clock is to add some brightness to the recreation area. There are also barbeque areas for families to enjoy time together or friends hanging out by throwing a barbeque party. The area is free for all and users have to clean up after using it. The proposed recreation area are mostly green spaces to purify the air. Green spaces are essential in reducing pollutions. Young generations can also learn more about nature and blend themselves into nature.
  • 12. Benefits Economic Benefits Open spaces such as parks and recreation areas can have a positive effect on nearby residential property values, and can lead to proportionately higher property tax revenues for local governments. The level of economic impact recreational areas have on home prices depends on how far the home is located from a park, the size of the recreational area and the characteristics of the surrounding neighbourhood. Open space land, recreation areas and compact developments may provide fiscal benefits to municipal governments. Physical Health Benefits Obesity Obesity is a major health concern and is closely linked to physical inactivity. Obese individuals had a lower incidence of disease and mortality than normal-weight individuals. Exercising activities can help curb obesity hence reducing the percentage of having obesity. Strengthen Immune System A physically fit person is less prone to sickness. Research shows that positive changes in the immune system occur during moderate exercise. By participating in community activities and surrounding themselves with family and
  • 13. friends, they increase in positive moods, which have been linked to enhanced immune responses. Mental Health Benefits Reduce Depression Recreation and leisure activities can help alleviate depression. Recreation activities reduce alienation, loneliness and isolation, all of which contribute to depression. Mentally recalling outdoor recreation activities increases positive moods which are linked to improved self-esteem, lowered depression and reduce suicide rates. Reduce Stress No one is immune to stress which we all experience at some point in our lives. Positive and enjoyable recreation experiences can decrease stress, anxiety and psychological tensions. Stress reduction also comes from group activities that strengthen social ties and the calming effects of desirable outdoor settings. Social Benefits Strengthen communities Recreation brings neighbours together, encourages safer, cleaner neighbourhoods and creates a livelier community atmosphere. Recreational facilities also help improve a community’s image, socioeconomic status and enhance the area’s desirability.
  • 14. Promote social bonds Families that recreate together tend to be closer and more cohesive, and have a greater chance of staying together. During recreation and leisure time, people are less concerned with differences and more concerned with having fun. The strength of a community is increased through recreation activities that allow people to share their cultural and ethics differences. Environmental Benefits Parks and recreation areas are proven to improve water quality, protect groundwater, prevent flooding, improve the quality of the air we breathe, provide vegetative buffers to development, and provide a place for children and families to connect with nature and recreate outdoors together.
  • 15. SWINGS LAKE SPRING RIDES BARBEQUE AREA BRIDGE ABOVE THE LAKE FLOWER BEDS SITTING OUT AREA FLOWER CLOCK SITTING-OUT AREA SEE-SAW OUTDOOR GYM PLAYGROUND PALM TREE
  • 16. Proposal 2 Commercial Area- Mini Mart By: Lee Ning
  • 17. Rationale This mini mart will be located at the centre of the residential area. The main objective to build a mini mart in this residential area is to provide an easy access for the residents around to buy their daily object. With the appearance of this mini mart, residents can save their time by going to buy groceries from this market rather than the supermarket or other commercial block which is located in the city. This mini mart will be a three storey mart. The ground floor will be the wet market which provide fresh meat, chicken, fish, and prawn and also conclude a non- halal cold storage which provide non- halal food. The first floor will provide the fresh vegetables and fruits. The cold storage is also located at the first floor. Lastly, the dry food like cereal, rice, bread, biscuits and so on will be collocating at the second floor. Benefits This mini mart will confidently provide conveniences to the community especially the housewives and also the elders as it provides an easy access for the residents to buy groceries. This mini mart will also provide job vacancies in the residential area. Besides that, these will also benefit the owner of the land. This is because the owner can obtain a stable profit from the community as long as the prices of the items are reasonable. Therefore this kind of mini mart will surely create a win-win situation to the owner and residents.
  • 18. Impact However, this project will also bring some negative effect to the residential area. As this mini mart is not an existing structure, there will be a sound pollution to the residential area during the construction. Besides that, there might be a road block during the phase of construction which will definitely affect the usual lifestyle of the residents. Lastly, arrival of this building will block the scene of the green zone from some residential area.
  • 19. Perspective in the Mini Mart
  • 20. Procedure to propose a commercial area 1. Business registration a. Incorporating a limited liability/ public company (for more information www.ssm.com.my) 2. Principal approval a. Foreign owned specialty store: approval of Ministry of Domestic Trade, Cooperatives and Consumerism (KPDNKK) is required for the establishment of a foreign-owned departmental store (for more information www.kpdnkk.gov.my) 3. Premise a. Renting a premise: advised to enter into a tenancy agreement b. Renovating a premise: subjected to Local Council’s approval (for more information www.dbkl.gov.my) c. Constructing a building: required to obtain Construction Approval from a Local Council to construct a building. Also required to engage Professional Architects/ Engineers to facilitate the application. (for more information www.dbkl.gov.my) 4. Registering with government authorities a. Required to register with: i. EPF (Employee Providence Fund) ii. SOCSO (Social Security Organisation) iii. IRBM (Inland Revenue Board Malaysia) iv. PSMB (Pembangunan Sumber Manusia Berhad) 5. Operational Approval
  • 21. a. Work permit: From Immigration Department b. Premise license c. Fire safety inspection d. Occupational Safety and Health notification: Required to notify Department of Occupational Safety and Health (DOSH) e. Advertisement license f. Food handling premise registration: Registration with Ministry of Health g. Food handling permit: Food handlers are to undergo yearly medical examination h. Liquor license i. Cheapsale notification: Required to notify KPDNKK j. Weighing machine license: Required to apply with KPDNKK k. CE standard notification: Required to notify KPDNKK l. Control items license m. Publication permit n. Entertainment permit o. Halal certification p. Hosting machine permit q. Certification of approval: Recognised by Energy Commission r. Resell electricity license: Apply license from Energy Commission 6. Taxation a. Corporate tax: Pay to IRBM b. Individual/ Employee Income Tax: Required to facilitate employees’ income tax with IRBM
  • 22. c. Service tax license & Service tax: Apply from Royal Malaysia Customs Department-must be paid to custom d. Property taxes: Required to pay Assessment tax at Local Council and Quit Rent Tax to Land Office annually The relevant stages of development process are as follows: (1) Initiation Stage The commencement point of land development process is when a land is considered suitable for a different or more intensive use or demand for a particular use leads to a search for a suitable site by an initiator. The initiator can be the landowners themselves who in turn may also assume the role of the developer at the proceeding stage. In some cases, the initiator is the public sector and government agencies who also sometimes play the role of the developer. An accountant also usually features at this stage to provide advice to the developer and public sector on structure of partnership. Another main actor in this stage is the commercial agent or estate agent who can identify the right site that meets the requirement of a developer’s property development portfolio or criteria and by bringing together some of the main actors in the process. An agent is also often involved in every proceeding stage which is outlined afterwards. (2) Evaluation
  • 23. This is the stage whereby action taken under the form of market research and financial appraisal guides the developer in making decisions throughout the process. At this stage, the developer is supported by a professional or an economic consultant in the person of registered property valuers or appraisers. Upon instruction, they will prepare a detailed analysis of the characteristics of the market in terms of the underlying demand and competitive supply in what is called the market and feasibility study. (3) Acquisition This stage actually begins with legal investigation of the site on issues such as land ownership and planning permission, proceeding with ground investigation which is a thorough assessment on the physical attributes and capabilities of the site to accommodate the development, and ending with sourcing and obtaining financing and funding for the acquisition and development exercises. The developer can either carry out the legal investigation of the site on its own or engage a lawyer (solicitor) to conduct the task. A solicitor also plays a role in preparation of legal agreements of funding arrangement entered into by the developer. The public sector may also become involved in this stage in situations where a large site with many occupier and landowners need to be assembled since as the government, they can use their legal powers of compulsory purchase to acquire the site. An accountant also features at this stage by providing advice to the developer or public sector on the structure of project funding or financing arrangement. In most
  • 24. cases, financial institutions are the providers of finance in land and property development in terms of development finance (short term money) and long term money or financing the cost of holding the completed development as an investment. Alternatively, in land/property development of Sell-Build-Transfer type, the developer may finance its development project by seeking a buyer for the completed scheme to repay the short-term loan and realize any profit. (4) Design and costing This is the stage where the preparation of plans and cost estimates for the proposed development is undertaken generally carried out simultaneously with various other stages of development process. At this stage, if the developer is a large corporate entity already having the qualified professional staff in its stable, then the preparation of the plans and estimates can be said as to be prepared in-house by the developer itself. However, it is also common practice, as in the case with the public sector and some private developers to engage an outside professional team at this stage comprising the following consultants: i. Architects Architects main role in this stage is designing the appearance and construction of new buildings and refurbishment of existing building. In some cases they also administer the building contract on behalf of the developer. ii. Quantity surveyors
  • 25. This consultant (also termed as ‘building accountant’ by Cadman and Topping) plays the role of advising the developer at this stage on the likely costs of the total building contract and associated costs by performing: - costing the designs produced by the architect, - administering the building contract tender, and - advising on the most appropriate form of building contract. iii Building surveyor In re-development involving refurbishment works, building surveyors are engaged to survey the existing building and advice on the alterations to be made to the developer (5) Permissions This is the stage where statutory planning permission (preliminary outline planning consent followed later on by detailed planning consent) from the local planning authority before commencing with the actual development is obtained. In some cases and depending on the original status of the acquired land, the landowner or developer has to apply from the state authority for conversion and sub-division of the land before the land can be developed. Land Surveyors will play their role in survey and measurement of the land. Planners in the form of politicians are responsible for approving the development plans drawn up by professionals in accordance with policy which they have earlier set down, and approving and refusing the applications for permissions for development proposals.
  • 26. Planners in the form of professionals or Planning Consultants on the other hand come up with the development plans on behalf of the developer and the ones who will negotiate with the local planning authority as to the permission that allow for the ‘highest and best use’ development particularly with large or sensitive schemes. This planning permission can also be obtained by an Architect if a planning consultant is not employed. (6) Commitment This is the stage where the land development really starts to materialize in the form of signed agreements on matters such as inputs of land, finance, labour and materials and statutory permissions. Various actors and sub-actors that have been mentioned before will come together at this stage performing their associated roles as follows: i. Landowners, public sector and developer as the main actors in the commitment depending on the structure of partnership on the land development. ii. Lawyers / solicitors in overseeing the signed agreements, tenders and contracts between the developer and building contractor and its professional team of consultants such as architects, quantity surveyors and engineers (7) Implementation This is the stage when all the raw materials of the development process are in place. Once again various actors and sub-actors that have been mentioned before will come together at this stage performing their relevant roles as follows:
  • 27. (1) Architects administer the design and build contracts and certify completion of the building works. (2) Quantity surveyors monitoring the construction and approving stage payments to the contractor, and participating in the administration and management of design and build contracts. (3) Building contractors are the main actor in this stage by undertaking the construction of the development scheme. A building contractor who undertakes and oversees this entire stage of land development is also called the ‘Turnkey Contractor”. With relevant expertise, this building contractor may also be the management contractor who manages the various usb-contractors for the developer. The developer itself can be the builder if it has the necessary in-house expertise or keep its contracting division as a subsidiary company with an entirely separate profit-making centre. (3) Engineers are involved in this stage in the construction of improvements on the land. There are three types of engineers involved in this stage: 1) Civil engineers role is in supervising major infrastructure works and/or ground work. 2) Structural engineers role is in advising architects and quantity surveyors as to the design of the structural elements of the building.
  • 28. 3) Mechanical and electrical engineers are the team that designs all the services within building of large and complex schemes. (4) Project managers are normally employed if the land development schemes are large and complicated to manage the professional team and the building contract on behalf of the developer. (8) Let / manage / dispose This is the stage of securing a willing occupier of the end-product of the development at the estimated rent or price by way of letting or outright sale. Depending on the type of development, this stage proceeds immediately after initiation stage as in the case of sell-build-transfer type of development which is of the norm in Malaysia. The main actor at this last stage (which can also be the first stage depending on the type of the development) is the property or estate agent who is the link between the developer and the occupier. Agents may also be used by developers to assist them in securing the finance for a development scheme. The agents are professionals who include chartered surveyors, registered valuers and licensed real estate agents. Apart from the above-mentioned, there are other actors who are also involved in the development process depending on their area of expertise and the scale of the development. This includes highway engineers, landscape architects, soil specialists, public relations consultants and marketing consultants.
  • 29. In practice, the land development process also does not always rigidly follow the sequence of stages as mentioned above. Some stages may overlap and occur simultaneously. Estimate cost for the project= RM 2,000,000- 2,500,000 Conclusion After comparing the benefits and the impact of this project, the benefit is greater than the impact. This is because the impact will only affect for once awhile but it will provide a long-term benefit. In the conclusion, this project is a worthwhile project to be considered.