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Why Are Certificates of Completion and Compliance (CCC) and Fire Certificates Important in Malaysia?

Posted by admin on November 27, 2023
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If you're on the lookout for leasing or purchasing industrial property here in Malaysia, there are a few considerations that may not have crossed your mind. Many times, potential tenants narrow down the entire picture to a single focus: the cost per square foot. This approach often overlooks crucial factors, and two of the most pertinent ones in 2022 are the Certificate of Completion and Compliance (CCC) and the Fire Certificate. Firstly, it's essential to ensure that your industrial property possesses the Certificate of Completion and Compliance (CCC). This is a crucial legal requirement, verifying that the construction has been completed in accordance with relevant regulations and standards and is fit for the intended purpose. Lack of a CCC could lead to legal issues, impacting the operational aspects of your business. When considering costs, make sure that this certificate is a significant component in your negotiations.

What is a Certificate of Completion and Compliance (CCC)?

The Certificate of Completion and Compliance (CCC) essentially signifies that the building is deemed safe for occupancy. The provision for its implementation can be traced back to Section 70(21) of the Street, Drainage, and Building Act 1974 (“SDBA 1974”), which underwent an amendment in 2007 through the Street, Drainage, and Building (Amendment) Act 2007 (“SDBAA 2007”).

Interestingly, clients rarely emphasize inquiries regarding available certifications, specifically the CCC, or even inquire about the age of the warehouse.

Obtaining CCC certification in Malaysia is a crucial process that involves approvals from five different government departments before it is issued.

Several critical steps and approvals are involved in obtaining CCC certification in Malaysia, demonstrating the stringent requirements imposed by local authorities to ensure the safety of occupied buildings. These include:

  1. confirmation of electrical supply by TNB
  2. confirmation of water supply by SYABAS
  3. Connection to sewage treatment plants or mains by the Jabatan Perkhidmatan Pembetungan
  4. clearances for active firefighting systems from Bomba.
  5. confirmation of roads and drainage by the local government.

The rigorous nature of these requirements underscores the importance of adhering to proper guidelines before a CCC can be issued, signifying the building’s safety for occupation. Penalties for non-compliance are severe, emphasizing the legal consequences of occupying a building without a CCC. Section 127 stipulates a RM10,000 fine with an additional RM500 for each day of non-compliance after conviction for general penalties. Regarding offenses related to CCC issuance (section 70(27)), fines can escalate to RM250,000 or a maximum prison term of ten years.

Tenants focusing solely on the price per square foot may encounter challenges with local authorities due to a lack of inquiry into the landlord’s adherence to relevant documentation. It is essential for prospective tenants to be aware that occupying a building without a CCC or initiating business registration without a CCC in place constitutes an offense, carrying significant legal and financial consequences. Additionally, separate legislation, the Fire Service Act 1988, governs the issuance of fire certificates, adding another layer of regulatory compliance.

What is a fire certificate?

Section 28 of the FSA 1988 tells us that every premise (except single private dwellings or public religious worship areas) requires a fire certificate that has been renewed every year. All applications for a fire permit have to be made to the Director-General of Fire and Rescue.

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