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KLANG (May 22): Selangor is intensifying efforts to reinforce its position as Malaysia's leading industrial and investment hub through a series of strategic initiatives aimed at accelerating industrial park development, enhancing investor facilitation and improving the ease of doing business.
Speaking to EdgeProp following Invest Selangor's event themed "Insights into the Latest Opportunities for SME and Mid-tier Companies" on Wednesday (May 20), Invest Selangor Bhd chief executive officer Datuk Hasan Azhari Idris said the Managed Industrial Park (MIP) guidelines are intended to support developers in establishing industry-ready industrial parks aligned with global standards, while incentives such as fast-track approvals, fee exemptions and flexible ownership policies are designed to attract higher-value investments.
Complementing these measures is the SPEED Selangor Policy, which seeks to streamline approval processes and strengthen the state's investment ecosystem.
In addition, the Selangor Investment & Industrial Park Expo (SPARK), held under the state's flagship Selangor International Business Summit (SIBS), serves as a platform to promote investment-ready industrial ecosystems to international investors and industry players.
"Selangor continues to strengthen its position as Malaysia's premier industrial and investment hub through strategic initiatives that accelerate industrial park development and enhance investor facilitation.
“The Managed Industrial Park (MIP) guidelines support developers in building industry-ready industrial parks aligned with global standards, while MIP incentives such as fast-track approvals, fee exemptions and flexible ownership policies attract high-value investments.
“Complementing these efforts, the SPEED Selangor Policy streamlines approval processes to improve ease of doing business. Meanwhile, the Selangor Investment & Industrial Park Expo (SPARK) under Selangor's annual flagship event, Selangor International Business Summit (SIBS) serves as a strategic platform to promote investment-ready industrial ecosystems to global investors and industry players," he said.
Record economic performance
In his welcoming remarks at the event, Hasan Azhari said Selangor recorded a historic gross domestic product (GDP) of RM432.1 billion in 2024, becoming the first and only state in Malaysia to surpass the RM400 billion mark for two consecutive years. The state also maintained its position as one of the country's leading investment destinations, attracting RM83.9 billion in approved investments in 2025, according to data from the Malaysian Investment Development Authority (MIDA).
Selangor contributed 26.2% to Malaysia's overall GDP while registering economic growth of 6.3%, outperforming the national growth rate of 5.1%. The state also remained the country's largest manufacturing and services hub, contributing approximately 32.9% to Malaysia's manufacturing output and 26.9% to the national services sector.
The achievements were attributed to long-term strategic planning and industrial development initiatives implemented under the Rancangan Selangor Pertama (RS-1), which focused on infrastructure readiness, digital economy growth, sustainability and socioeconomic resilience.
Looking ahead: RS-2
The upcoming Rancangan Selangor Kedua (RS-2), covering the 2026 to 2030 period, is expected to place greater emphasis on high-value industries, innovation, sustainability, digital transformation, talent development and inclusive economic participation. The plan is intended to align with the aspirations of the 13th Malaysia Plan and the National Industrial Master Plan 2030 (NIMP 2030).
Despite the positive outlook, Selangor acknowledged growing global challenges that could affect industrial development and economic growth, including geopolitical tensions, supply chain disruptions, inflationary pressures, climate-related risks, technological disruptions and increasing competition from emerging regional economic hubs.
SMEs and mid-tier companies in focus
Against this backdrop, the state highlighted the importance of strengthening local capabilities through the development of small and medium enterprises (SMEs) and mid-tier companies (MTCs). According to Hasan Azhari, SMEs account for more than 97% of business establishments nationwide, contributing close to 38% to Malaysia's GDP and providing over 48% of employment opportunities.
MTCs, meanwhile, represent approximately 0.8% of registered companies in Malaysia but contribute an estimated 36% of the country's GDP while employing about 16% of the national workforce. In Selangor, SMEs and MTCs play a key role in supply chain resilience, industrial competitiveness, innovation capacity and broader socioeconomic development.
Hasan Azhari said strengthening local companies is increasingly important as Selangor transitions towards higher-value industries such as advanced manufacturing, digital economy, green technology, aerospace, life sciences, and electrical and electronics (E&E).
An update series programme held in collaboration with strategic partners including the Ministry of Entrepreneur and Cooperatives Development (KUSKOP), Khazanah Nasional Bhd and Bursa Malaysia forms part of broader efforts to support SMEs and MTCs through financing facilitation, capacity building, governance enhancement, business expansion opportunities and fundraising initiatives.
The programme included sharing sessions by KUSKOP, Bursa Malaysia Bhd and Khazanah Nasional Bhd. KUSKOP presented funding opportunities aimed at supporting businesses from startup to scale-up stages, while Bursa Malaysia shared initiatives designed to help mid-tier companies strengthen growth, governance and readiness for capital market access. Khazanah highlighted initiatives focused on enhancing market positioning, accelerating innovation and preparing businesses for future capital market participation. The programme also included networking sessions and business clinics.
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