Industrial Growth Now Depends on Full Ecosystems, Not Just Land and Buildings, Says Expert

Malaysia’s industrial sector is entering a new phase where investors prioritise complete, ready-to-operate ecosystems over basic plots or standalone factory units. This shift, highlighted during EdgeProp Malaysia’s Industrial Special Report soft launch in Taipei, reflects the country’s evolving industrial roadmap as global supply chains reorganise and manufacturing requirements become increasingly specialised.

The preview event was held in conjunction with REHDA Institute’s Taiwan Study Trip 2025 on Nov 18–21, where Malaysian developers and policymakers shared perspectives with Taiwanese industry players.

“Investors Want Systems, Not Just Sites”

EdgeProp Malaysia editorial and branding head Jacqueline Lim said Malaysia’s industrial narrative must be viewed across decades of transformation — from early free-trade zones to today’s high-tech clusters.

“We’re now competing in the most demanding era ever,” she said. “Investors are no longer satisfied with empty parcels of land. They expect complete ecosystems that are ready from day one.”

Quoting AREA Group chairman Datuk Stewart LaBrooy, she said the essentials of modern industrial development now include:

• Reliable utilities and power capacity

• Strong mobility and logistics links

• Skilled labour availability

• Forward planning for expansion

• Digital-ready and automation-compatible infrastructure

LaBrooy emphasised that global dynamics — especially shifts in semiconductor supply chains, electric vehicles (EVs), and digital infrastructure — have changed the rules of engagement.

“It’s not just about providing land anymore. Industrial parks must function as integrated, intelligent ecosystems capable of supporting long-term leadership in the region,” he said.

Malaysia Targets Up to RM60 Billion in EV-Related Investments

Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz, in the Industrial Special Report, outlined Malaysia’s strategy to capture high-quality investments across the full EV value chain. He noted that Malaysia’s strengths in automotive manufacturing, skilled labour, incentives and policy clarity put the country in a strong position.

“Based on current trends, Malaysia could attract at least RM60 billion in EV-related investments over the next five years,” he said.

Zafrul added that Malaysia’s OSAT (Outsourced Semiconductor Assembly and Testing) dominance offers a strategic advantage: “We produce the brain of the EV.”

Demand Rising for High-Tech & Built-to-Suit Facilities

Knight Frank Malaysia’s executive director for land and industrial solutions, Allan Sim, noted that Malaysia’s most attractive opportunities now lie in high-tech and built-to-suit industrial segments, where demand is outpacing available supply.

Key emerging hotspots include:

• Penang — semiconductor and advanced manufacturing

• Southern Johor — strong Chinese, Korean, Japanese and US industrial expansions

• Port Klang and Shah Alam (Selangor) — Malaysia’s most liquid industrial markets

• Negeri Sembilan & Kulim — rising long-term potential

This aligns strongly with investor demand for industrial land in Selangor, industrial property in the Subang area, and specialised factory spaces in Puchong, as companies look for locations with power stability and automation-ready infrastructure.

REHDA Institute Strengthens Malaysia’s Pitch to Taiwanese Investors

During the Taipei event, REHDA Institute COO David S. Chong commended EdgeProp for producing a comprehensive industrial-focused report. He said global interest in world-class industrial assets has surged since the pandemic, making it crucial for Malaysia to deliver high-quality industrial parks to attract foreign manufacturers.

“Government leaders are out there presenting Malaysia as an investment destination. Developers must match that message by delivering world-class industrial environments,” Chong said.

He added that the Taiwan Study Tour aims to connect Malaysian stakeholders with Taiwanese investors as part of a coordinated national effort.

Malaysia’s Next Industrial Wave: Ecosystem-Driven Parks

EdgeProp managing director Alvin Ong said Malaysia’s industrial landscape is being reshaped from north to south, driven by:

• Logistics and distribution hubs

• Advanced manufacturing

• Technology-driven EV clusters

• Data centre ecosystems

• ICT and semiconductor expansions

• Halal and cold-chain supply logistics

He noted that these new ecosystem-style industrial parks are becoming the prime determinant of where capital, talent and property demand will shift next.

“Our 2025 Industrial Report ties together insights from policymakers, industry captains, think-tanks and developers. Anyone planning around Malaysia’s next decade of growth should give it a serious read,” Ong said.

Relevance to Klang Valley Industrial Investors

This nationwide shift toward ecosystem-based industrial development has strong implications for:

• Commercial property in KL

• Office space in Bukit Jalil

• Industrial land in Selangor

• Factory and logistics hubs in Puchong

• Industrial property in the Subang area

As investment criteria become more complex, demand will increasingly concentrate in locations that can support power-intensive, talent-dependent and automation-driven industries.