Full industrial ecosystem is new currency, not just plots and premises, says expert

• EdgeProp’s Industrial Special Report, launched in Taipei, previewed Malaysia’s evolving industrial roadmap, outlining how the country is reshaping its manufacturing base to stay competitive amid global realignments.

PETALING JAYA (Nov 19): Modern industrial investment favours places that operate as functioning systems rather than loose collections of factories, says a real estate veteran.

This was part of the insights highlighted by EdgeProp Malaysia editorial and branding head Jacqueline Lim during the soft-launching of its Industrial Special Report in Taipei, Taiwan, in conjunction with Real Estate and Housing Developers’ Association (Rehda) Institute’s Taiwan Study Trip 2025—Industrial & Sustainability Study Tour on Nov 18–21.

Lim said Malaysia’s long industrial journey needs to be seen in context.

“We’ve moved from free trade zones to high-tech clusters, and we’re now in the most competitive chapter yet.

“Investors today expect ready-to-go ecosystems, not just parcels of land,” she said.

“This new model relies on several essentials such as reliable utilities, connectivity, a supply of trained workers, and a clear plan for future capacity,” she cited excerpts from an exclusive interview with AREA Group chairman Datuk Stewart LaBrooy.

“Today’s landscape is far more demanding. Supply chains are shifting, semiconductors, and electric vehicles (EV)s dominate investment flows, and digital infrastructure has become the new competitive backbone. The traditional model is no longer enough,” LaBrooy was quoted saying.

“It’s not just about providing land; we need to create integrated, intelligent ecosystems that attract long-term industrial leadership in the region.

“Execution excellence means you stop handing over empty shells. You deliver a full environment that can operate on day one,” he added.

The launch previewed Malaysia’s evolving industrial roadmap to an international audience, outlining how the country is reshaping its manufacturing base to stay competitive amid global realignments.

Besides LaBrooy’s views, excerpts from the Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz; and Knight Frank Malaysia land and industrial solutions executive director Allan Sim also anchored the discussions.

Malaysia drawing up to RM60 billion in new EV-related investments

In the report, Zafrul said Malaysia aims to attract strategic, high-quality investments across the full electric vehicle (EV) ecosystem. Malaysia’s automotive base, skilled workforce, targeted incentives and policy clarity provide further competitiveness.

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

He added that the goal is not just value, but projects that deliver technology transfer, build local supplier capabilities, create high-skilled jobs and deepen Malaysia’s integration into regional and global EV supply chains.

Zafrul also pointed out that Malaysia’s advantage stems from its semiconductor strength.

“Malaysia is a major global player in outsourced semiconductor assembly and testing (OSAT), giving it an advantage in producing the ‘brain’ of the EV.”

Demand outpacing supply in high tech, built-to-suit facilities

On how the industrial transformation is impacting the real estate landscape, Sim stated in the report: “The best opportunities for foreign investors are emerging in Malaysia’s high-tech and built-to-suit segments, where demand is outpacing existing supply.

“Built-to-suit demand is rising across Penang, and southern Johor, driven by Chinese, Korean, Japanese and US manufacturers requiring specialised power infrastructure and automation compatibility.

“Port Klang and Shah Alam [both in Selangor] remain the most liquid industrial locations in Malaysia, while emerging markets like Negeri Sembilan, and Kulim offer long-term potential”.

Rehda Institute leads Malaysian developers in wooing Taiwan investment

At the event, Rehda Institute chief operating officer David S. Chong congratulated the EdgeProp team for producing a focused special report on industrial real estate. 

“Since Covid-19, interest in developing high-quality, world-class industrial assets has surged—crucial for Malaysia as we seek to attract foreign manufacturing investment, and create jobs. During our recent CEO Series 2025 Forum, Miti deputy minister Liew Chin Tong highlighted that while government leaders pitch Malaysia to global investors, property developers must also deliver world-class industrial projects to make Malaysia a preferred destination,” said Chong.

“Guided by [Rehda Institute chairman] Datuk Jeffrey Ng and our Board, Rehda Institute aims to support this national agenda. As a social enterprise focused on knowledge and human capital development, we connect industry experts, and share market insights through our strategic industrial masterclasses to help advance Malaysia’s industrial real estate ecosystem. 

“Demi negara, we are pleased to collaborate on the soft launch of this initiative during our ongoing Taiwan Tour, where we are matching Malaysian industrial stakeholders with potential Taiwan investors.”

Special Report puts together crucial insights to guide next investment move

Meanwhile, EdgeProp managing director Alvin Ong points out that logistics parks, advanced manufacturing plants, and data centre hubs are transforming Malaysia’s industrial landscape from the north to the south, including the East Coast regions.

“Semiconductor, Information and Communication Technology (ICT), battery-powered automotive, international halal supply chain— all these are birthing a new generation of ecosystem-style industrial parks which are starting to determine where capital, jobs, and housing move next,” he said.

“Our latest 2025 Industrial Report pulls these threads together, with exclusive insights from policy makers, government think-tanks, industry insiders, and more.

“If you’re planning around Malaysia’s next decade of growth, this would be a good read,” Ong added.

Unlock Malaysia’s shifting industrial map. Track where new housing is emerging as talents converge around I4.0 industrial parks across Peninsular Malaysia. Download the Industrial Special Report now.