10 Key Essentials to Ask Before Inspecting a Factory

Buying a factory is a major investment. Asking the right questions ensures you don't buy the wrong property! Before conducting an on-site inspection, it is recommended to clarify the following 10 core points to save money, time, and trouble while avoiding major pitfalls:

I. Basic Conditions & Planning

1. Location
- Is this location suitable for my industry?
- Is it close to highways, ports, or airports?
- Is it convenient for employees to commute?

2. Land Title & Status
- What is the status of the land title?
- Is it designated as industrial or commercial land?
- Can it legally accommodate my business operations?

3. Land Area & Built-up Area
- What are the land area and built-up area?
- How does the actual physical area compare to the title deed?
- Is there sufficient space for future expansion?

II. Infrastructure & Logistics

4. Power Supply (Ampere)
- What is the electricity supply capacity in amperes (Amp)?
- Is it sufficient for current operations?
- Is future power upgrading feasible and easy?

5. Water Supply
- Is the water supply stable?
- What is the source of the water supply?
- Is the water pressure sufficient?

6. Logistics & Accessibility
- Is it convenient for heavy vehicles/lorries to enter and exit?
- Are the access roads wide enough?
- Are there any traffic or weight restrictions?

III. Human Resources, Compliance & Long-Term Value

7. Labor Supply
- Are there sufficient local labor resources nearby?
- Is recruitment accessible?
- Is the daily commute convenient for employees?

8. Compliance & Permits
- Has the CCC (Certificate of Completion and Compliance) been officially obtained?
- Has the fire protection system been approved by the Fire and Rescue Department (Bomba)?
- Does the factory usage comply with local planning guidelines?
- Are there any unauthorized or illegal extensions?

9. Surrounding Development Planning
- Are there any major industrial or commercial developments nearby?
- Is it strategically located close to major highways, airports, or ports?
- Will regional infrastructure be upgraded?
- Is there adequate room for future growth?

10. Resale & Rental Potential
- What is the market demand for this type of factory?
- Is it liquid and easy to resell in the future?
- What is the estimated rental yield?
- How strong is the market liquidity?

Why These 10 Points Matter
- Mitigate Risks: Avoid purchasing an unsuitable or problematic factory asset.
- Prevent Financial Losses: Minimize unexpected future renovation, expansion, or compliance rectification costs.
- Save Time: Rapidly evaluate whether a factory aligns with your operational requirements.
- Maximize Value: Choose the right industrial property to propel your business to the next level.

If you are currently searching for a factory or preparing for a site visit, feel free to save this checklist as a comprehensive reference guide for your on-site evaluations.