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

It began with a call from the Ministry of Health (MOH).

When I was invited to speak at a government event on indoor air quality (IAQ) sensors recently, I realised the conversation around clean air in Malaysia was shifting far beyond hospitals.

It was moving into factories, warehouses, and logistics hubs quickly.

What MOH is doing sets the benchmark. Industry is the next frontier.

Over the past year, Malaysia’s push for healthier, more resilient built environments has sharpened. And in industrial settings, particularly where temperature, lighting and compliance have always taken priority, one metric is quickly becoming non-negotiable: IAQ.

Legally, the Industry Code of Practice on IAQ (ICOP) caps carbon dioxide at 1,000 ppm. But data from MOH’s own real-time monitoring rollout shows a very different picture. Facilities that maintain CO2 levels below 800 ppm record sharper worker focus, lower fatigue, and stronger infection control. These outcomes directly affect production-line consistency, and workforce stability.

The real risk for industrial operators today is not failing an audit. It’s falling behind.

Multinational tenants now screen suppliers on air quality, not just environmental, social and governance (ESG) standards. A facility without visibility will look outdated even if it meets ICOP.

Malaysia’s climate makes this even more urgent. Year-round humidity accelerates mould growth and microbial spread. Seasonal haze pushes PM2.5 indoors. And high-density assembly floors and warehouses can see CO2 spike long before occupants notice.

Our climate makes passive systems unreliable.

IAQ needs to be monitored, not assumed. The MOH’s own approach, such as sensors placed at breathing height, prioritising high-risk zones, feeding live data into operational dashboards, has given industry a readymade template for modernising how air is managed.

The impact of better IAQ is not theoretical. At the Institute for Medical Research (IMR), a shift from passive cooling to active ventilation with heat recovery cuts energy consumption while improving health outcomes.

Industrial parallels are easy to find.

Electronics plants reduce static-related defects when humidity is stabilised.

Food-processing facilities lower contamination risk when particulates are controlled. Warehouses see fewer spoilage losses during haze periods. And data centres extend equipment life when ventilation properly manages particulate flow and heat balance. These gains show up in real cost savings.

Yet, inside many industrial buildings, the same weaknesses repeat.

Cooling-first systems are still common, lowering temperature without refreshing air. Split-unit air conditioners, dominant in older facilities, recirculate stale indoor air with no fresh intake.

During haze periods, poor filtration drives particulates deeper into indoor zones. And humidity drift in enclosed spaces leads to corrosion and mould long before anyone notices. These issues don’t require expensive solutions.

They require visibility. You cannot fix what you cannot see.

The most powerful shift is happening in how IAQ is being used. At MOH facilities, air-quality data no longer sits in an environment, health, and safety (EHS) file. It actively informs engineering schedules, occupancy planning, and energy optimisation.

For instance, ventilation is increased when crowd levels rise. Thus, filter replacements are triggered by sensor data rather than fixed timelines.

Temperature, humidity and volatile organic compounds (VOC) fluctuations are correlated with specific workflows or machinery to detect emerging issues early. When IAQ appears on the same screen as productivity and energy use, its strategic value becomes obvious. It becomes part of the business.

This operational mindset is influencing how industrial properties are evaluated. While ICOP provides the regulatory baseline, international frameworks increasingly shape investor and tenant perception.

WELL Standards, LEED (Leadership in Energy and Environmental Design), and GreenRE all award credits for IAQ monitoring, filtration, and ventilation performance. WELL’s requirement for sub-800 ppm CO2 aligns closely with MOH benchmarks and is now a reference point for global tenants comparing regional facilities. Developers targeting institutional tenants can no longer ignore these.

But certification depends heavily on data integrity. Malaysia’s humidity, haze cycles, and temperature swings demand sensors designed for real-world conditions, not generic consumer devices. The wrong equipment can distort readings, create false confidence, and undermine an entire IAQ strategy.

Having no data is better than having wrong data, quoting Professor Lam of NUS (National University of Singapore). It all starts with choosing the right sensor for the right environment.

The encouraging reality is that IAQ is no longer cost-prohibitive. A midsized factory can deploy a network of 10–15 sensors with a real-time dashboard for under RM10,000, supported by green financing via the MyHIJAU Fund.

For most operators, that is significantly cheaper than a single unplanned production halt. As multinational tenants increasingly evaluate supply chains based on environmental health, and workforce performance metrics, IAQ transparency is moving from advantage to expectation.

Malaysia’s healthcare sector has shown the way. IAQ is not about meeting thresholds. It’s about creating environments where people thrive, machines last longer, and buildings earn their keep.

I expect IAQ disclosures to become as standard in industrial leasing as fire certificates by 2027. The technology is here. The data is here. The urgency is here. The next step is adoption.

This article is extracted from a contribution by Fatin Syazana, the country director of Airscan Sdn Bhd, a Belgium-based environmental consulting firm specialising in air quality solutions for infrastructure, industrial, healthcare, hospitality, real estate, and offices.

Airscan Sdn Bhd can be contacted at: Phone: +603 7499 6273

Email: [email protected]

Website: airscan.org/airscan-south-east-asia/

The views expressed are the writer’s and do not necessarily reflect EdgeProp’s.

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