Renting a factory in Malaysia usually means a security deposit of commonly two to three months’ rent and a utilities deposit of half a month to a month, plus stamp duty on the yearly rent. A tenancy of up to three years needs no registration; a longer lease is registered on Form 15A. The rent is fixed for the term unless the agreement says otherwise, and the agreement decides who repairs the roof.
In this piece8 sections
What does it cost upfront to rent a factory in Malaysia?
Renting a factory upfront is mostly two deposits and the stamp duty. One law firm’s published FAQ on commercial tenancies puts the security deposit at commonly two to three months’ rent and the utilities deposit at usually half a month to a month’s rent, both refundable at the end. The stamp duty is worked out on the yearly rent and the term, and the tenant pays it.
These are common practice: the amount and when it comes back are whatever the tenancy agreement says.
Tenancy or lease: why is three years the line?
A factory let for three years or less is a tenancy and does not need registering at the land office. Let for longer than three years, it is a lease, completed on Form 15A and registered at the land office. The stamp duty is banded by the same terms.
Tenancy: three years or less
- Registration
- Exempt from registration under the National Land Code.
- Paperwork
- The tenancy agreement, stamped.
- Common shape
- A two-year fixed term with an optional two-year renewal, in one law firm’s FAQ.
Lease: over three years
- Registration
- Registered at the land office on Form 15A (section 221 of the Code).
- Paperwork
- The lease agreement, stamped, then Form 15A at a fixed RM10.
- The title
- A restriction in interest on the title can make the registered lease wait for State consent.
A restriction on the title covers leasing tooAn industrial title’s restriction can say the land may not be transferred, leased or charged without the State’s consent. Before signing a lease of more than three years, have your lawyer search the title. See freehold or leasehold factory land.
How much stamp duty is on a factory tenancy?
Stamp duty on a factory tenancy is charged on the yearly rent: for every RM250 or part of it, RM1 for a term of one year or less, RM3 for over one and up to three years, RM5 for over three and up to five, and RM7 beyond five. On RM10,000 a month (RM120,000 a year), a two-year tenancy carries RM1,440 of duty.
Example: RM120,000 a year ÷ RM250 = 480 units, times the rate for the term. An illustrative rent, not a market figure.
- Tenant: duty on the original
- Landlord: duty on the copy
- A renewal agreement is stamped too
All the units on our listings in October 2026 are space to rent. Looking to rent? Send Chris the size, power, location and the date you need to be in.
WhatsApp ChrisCan the rent go up during the term, or at renewal?
During the fixed term, the landlord cannot raise the rent unless the tenancy agreement expressly provides for a revision. What changes is the renewal: the option to renew says for how long, how the new rent is set, and how early you must give notice.
- The fixed termThe rent stays as signed, unless the agreement itself has a revision clause.
- The renewal optionCommonly a further two years after a two-year term, in one law firm’s FAQ; check how the new rent is set.
- The noticeThe option can set a deadline for taking it up in writing; find that date and note it on the day you sign.
- The renewal agreementA new instrument, stamped on its own rent and term.
Who pays to repair the roof?
Who repairs the roof is whatever the tenancy agreement says. Write the roof, the structure and the building’s systems into the agreement, item by item, before you sign.
Photo for illustration purposes onlyName it in the agreement
- Roof and gutters
- Leaks, rusted sheets and blocked gutters: whose cost, and how fast.
- Structure
- Columns, beams, floor slab and walls.
- Building systems
- Wiring, the incoming power supply, fire equipment, roller shutters.
Check these on your side
- Your own damage
- Damage from your own negligence or misuse.
- Your own fit-out
- Racking, partitions and machine bases you put in.
- Putting it back
- Reinstatement at the end, if the agreement requires it.
How do you get the deposit back at the end?
Deposits are usually refunded within 30 to 60 days of moving out, once the rent and utilities are settled, the premises restored where required and the keys and access cards returned. A record kept from the first day is the easiest way to get it back.
- Photograph the unit at handoverRoof, floor, walls, shutters and the meter, dated.
- Agree what “restored” meansWhich fit-out comes out and which can stay.
- Keep the final billsThe last electricity and water receipts.
- Get the keys signed forKeys, access cards and remotes, signed for together.
What to look at on the viewing is in what to check during a factory viewing; whether the power is enough, in factory power; and how to write what you need so it gets matched, in writing a factory requirement.
Send Chris the size, power, location, term and move-in date you need.
WhatsApp your requirementThis guide sets out common practice and published sources, not legal or tax advice. Check your own agreement with your lawyer.
Sources (3)
- Lembaga Hasil Dalam Negeri Malaysia (LHDN), “Garis Panduan Pengenaan Duti Setem Bagi Surat Cara Yang Tertakluk Kepada Jadual Pertama Akta Setem 1949”, 30 June 2026, for a tenancy being an agreement of three years or less, a lease over three years completed on Form 15A and registered at the land office (section 221 of the National Land Code) with RM10 on the form, item 49(a) at “Setiap RM250.00 atau sebahagian daripadanya” RM1, RM3, RM5 and RM7 by term, and the lessee paying on the original and the lessor on the copy: hasil.gov.my
- LH Low & Associates, “Frequently Asked Questions: Commercial Tenancy Agreements (Malaysia)”, for the security deposit “Commonly 2–3 months’ rent”, the utilities deposit “Usually 0.5 to 1 month’s rent”, “a 2-year fixed term with an optional 2-year renewal”, no rent rise in the term “unless the tenancy agreement expressly provides for such a revision”, the tenant’s liability for its own negligence or misuse, refunds within 30 to 60 days and stamping under the Stamp Act 1949: lhlow.com.my
- National Land Code (Revised 2020), Act 828, for tenancies of up to three years being exempt from registration (section 213) and leases on Form 15A (section 221): faolex.fao.org
Common questions
How many months' deposit do you pay to rent a factory?
One law firm's published FAQ on commercial tenancies puts the security deposit at commonly two to three months' rent and the utilities deposit at usually half a month to a month, both refundable at the end. Agree the amount, when it comes back and what can be deducted before you sign.
Who pays the stamp duty on a factory tenancy?
The tenant pays the duty on the original agreement and the landlord on the copy, as LHDN's guideline sets out. The duty is charged on the yearly rent by term: for every RM250, RM1 for one year or less, RM3 for over one and up to three years, RM5 for over three and up to five, and RM7 beyond five.
Can the landlord raise the rent during the tenancy?
Not during the fixed term, unless the tenancy agreement expressly provides for a revision. What to watch is the renewal: read how the option to renew sets the new rent before you sign, because that is where the rent changes.
What changes if you rent a factory for more than three years?
Over three years it is a lease, not a tenancy: it is registered at the land office on Form 15A, and the stamp duty is charged at the rate for the longer term. Where the title carries a restriction in interest, the registered lease can need the State's consent, so have your lawyer search the title first.
Is a roof leak the landlord's or the tenant's problem?
It depends on the tenancy agreement. Name the roof in the agreement: whose cost, and how fast it is fixed.
How long does it take to get a factory deposit back?
Usually 30 to 60 days after moving out, in one law firm's FAQ, once the rent and utilities are settled, the premises restored where required and the keys and access cards returned.