In conversation with: Invest Selangor CEO Datuk Hasan Azhari Hj Idris

This article first appeared in the Industrial Special Report in November 2025.

Selangor is solidifying its position as Malaysia’s industrial and logistics engine, with data centres, semiconductors, aerospace and global business services (GBS) driving new investment.

1) Which subsectors are driving Selangor’s investment growth in 2024–2026?

Selangor’s industrial momentum is being led by four fast-growing sectors: data centres, GBS, semiconductors and aerospace.

Data centres

Selangor has identified 52 data centres—39 operational, and 13 under construction—representing RM23.8 billion in investments between 2022 and 2024.

To support long-term sustainability, the state introduced a “Local Economy Development” initiative and formalised agreements with Air Selangor, Amazon Web Services, Indah Water Konsortium, and Central Water Reclamation Sdn Bhd to develop Klang Valley’s first reclaimed-water supply chain for data-centre operations.

Global business services

From 2020 to 2024, the GBS sector attracted RM8.93 billion in investments from 116 companies, creating 13,582 jobs. The state strengthened industry collaboration through its participation in the GBS Asean Summit 2025.

Semiconductors

Selangor is expanding its integrated circuit (IC) design ecosystem through new IC Design Parks in Puchong, and Cyberjaya. The Puchong hub—hosting firms such as MaiStorage, Skyechip, Weeroc and SensoremTek—has secured RM2.6 billion in investments, and offers starting salaries of RM5,000–RM6,000 for engineers. The new Cyberjaya hub, launched in November 2025, will house the Advanced Chip Testing Centre, and the Advanced Semiconductor Academy of Malaysia (ASEM), strengthening design, testing and talent development within a single innovation node.

Aerospace

Accounting for 68% of Malaysia’s aerospace output, Selangor aims to raise its share to 73% by 2030. The 600-acre Selangor Aero Park (SAP) within KLIA Aeropolis—developed by MBI and Malaysia Airports Holdings Bhd—anchors this push and is projected to generate more than 32,000 high-income jobs with a GDV of RM2.3 billion. SAP hosts OEM, MRO and component-manufacturing activities, with the first 200 acres already activated.

2) What policies and infrastructure investments are being prioritised to keep Selangor competitive?

Selangor’s policy direction is anchored by three major frameworks.

Rancangan Selangor (RS-1 and RS-2)

RS-1 (2021–2025) focused on economic strengthening, digitalisation and high-value sectors, with 282 projects across the state. RS-2, beginning 2026, will enhance transport connectivity—including new rail links—while promoting workforce inclusion for women and youth in digital, logistics and green industries.

SPEED Selangor Policy

Launched at SIBS 2025, SPEED aims to accelerate investment approvals through digitalisation, and unified fast-track processes. Planning approval timelines may be shortened from several months to as little as 14 days for qualified industrial projects.

Selangor Agenda for Green Economy (SAGE)

SAGE targets carbon neutrality by 2050 and prioritises renewable energy, EV infrastructure, circular-economy initiatives and climate adaptation. Partnerships include MBI–Gentari’s plan to expand renewable capacity to 1GW by 2030. SAGE also supports SMEs through ESG training and green-transition programmes.

Pulau Indah Power Plant (PIPP)

The 1,200MW RM3.3 billion natural-gas CCGT plant began commercial operations in March 2025. With over 60% efficiency, PIPP strengthens energy security for the Port Klang industrial corridor and aligns with Malaysia’s National Energy Transition Roadmap.

3) How is Selangor addressing rising land and operating costs for investors?

Selangor Soft Landing Programme (SSL) SSL targets first-time investors in seven priority sectors including E&E, F&B, life sciences and logistics. It offers coworking space, advisory support, accommodation and talent services in both pre-investment and post-investment phases. The pilot phase attracted RM274.8 million.

Selangor Lab Partnership Programme (SLPP)

SLPP supports R&D-driven growth in life sciences by connecting companies with advanced university labs, and offering up to RM5,000 per project. Nine universities—including UPM, UKM, UiTM and Monash—are programme partners.

Selangor Career Outreach Programme (SCOUT)

SCOUT bridges academia and industry through workshops, internships, and career pathways, helping employers access emerging talent while improving graduate employability.

4) How are ESG expectations shaping Selangor’s industrial parks?

The Managed Industrial Park (MIP) model—formalised in 2021—requires gated, fully managed parks with dedicated Industrial Park Managers overseeing utilities, connectivity, security and ESG compliance. MIPs integrate green building standards, renewable energy, digital systems and sustainable resource management, positioning Selangor’s parks to meet global investor requirements.

(This interview response has been edited for brevity and clarity.)

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