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This article appeared in the June 11, 2026 issue of the monthly print edition. Subscribe now.
Klang has emerged as one of Malaysia’s leading industrial and logistics corridors, with Bandar Bukit Raja increasingly positioned as a key growth area within the broader Klang ecosystem.
In an industrial talk held at Sime Darby Property Bhd’s Bandar Bukit Raja sales gallery last month, the developer highlighted Bandar Bukit Raja as part of its broader industrial and township development strategy in Selangor as it continues to expand its industrial offerings nationwide.
The group currently has more than 15,000 acres of landbank across the country, with a remaining gross development value exceeding RM100 billion. Of this, approximately 3,040 acres have been designated for future industrial developments across six major townships, said Sime Darby Property BBR Business Park township head Amir Baharain during the event, co-organised with EdgeProp.
Bandar Bukit Raja is positioned under the group’s industrial solutions platform, which comprises industrial land parcels, ready-built factories, built-to-suit facilities, as well as lease arrangements tailored to varying business requirements.
According to Amir, smaller ready-built industrial units ranging between 5,000 sq ft and 8,000 sq ft are generally acquired by the local market, while bigger parcels tend to attract overseas players. He noted that many international companies, particularly from western markets, increasingly favour asset-light business models, and therefore prefer built-to-suit-and-lease arrangements.
“Our smaller industrial plots and readybuilt facilities are mostly taken up by local investors and businesses, while larger plots and customised developments are generally driven by foreign companies and MNCs (multinational corporations),” he said.
He added that the BBR Business Park in Bandar Bukit Raja is intended to cater to a broad spectrum of industrial users, ranging from small and medium enterprises (SMEs) requiring one-acre plots to larger occupiers seeking tailored facilities spanning 30 to 40 acres. That said, the park is designed primarily for light and medium industrial activities, with heavy industrial operations not accommodated within the development.
Amir also said the BBR Business Park adopts a different management approach aimed at creating a more organised and conducive business environment. This includes greater emphasis on infrastructure upkeep, security, and the overall quality of the industrial ecosystem to improve the experience for investors and occupiers.
“We are not only competing locally. The ecosystem today extends beyond Malaysia, and we are also looking at what countries such as Thailand and Vietnam are doing,” he added.
He further noted that younger generations increasingly prioritise work-life balance and workplace environment, making it important for industrial developments to support talent attraction and retention through integrated and well-managed ecosystems.
The developer also highlighted its focus on green development, ESG readiness, value-added infrastructure, and integrated business eco-systems to support industrial occupiers.
Among the initiatives presented were flood mitigation measures within the BBR Business Park, including elevated finished floor levels positioned 1.1m above road level and retention ponds designed to accommodate rainfall events up to a 200-year average recurrence interval (ARI), exceeding the Department of Irrigation and Drainage’s 100-year ARI requirement.
Future-ready industrial parks taking off
EdgeProp research also noted the growing shift towards managed industrial parks in Selangor following the state government’s initiative introduced in 2021. These developments typically incorporate centralised management, gated environments, ESG-compliance features, and enhanced infrastructure management.
Data from real estate services consultancy JLL Malaysia indicated that occupier preference is increasingly shifting towards industrial assets with green and ESG-compliant features, particularly among listed companies and MNCs. Green-certified warehouses in Malaysia have recorded approximately 30% faster occupancy rates compared to conventional facilities (Chart 1).
In addition to energy-efficiency initiatives, managed industrial parks are also gaining traction for their broader ESG-related offerings.
These include enhanced worker safety measures, flood mitigation infrastructure, professionally managed facilities, ESG reporting readiness, as well as improved regulatory compliance and faster local authority approvals.
Klang makes up almost half of Klang Valley’s overall transaction count
The Klang Valley remained Malaysia’s largest industrial property market in 2025, recording industrial transaction values of RM15.7 billion, according to National Property Information Centre (Napic) data. The Klang district alone accounted for 44.8% of industrial transactions across the Klang Valley during the year.
At the event, EdgeProp’s head of research and consultancy Kee Hock Im also cited several recent industrial transactions in Klang, including Axis REIT’s acquisition of industrial assets and facilities in Bukit Raja in 2024 valued at RM351.8 million and RM49 million respectively, as well as Colform Group’s purchase of industrial land in Pulau Indah for RM25.2 million in 2025.
Future infrastructure projects are expected to further support industrial growth in Klang and Bandar Bukit Raja. These include the East Coast Rail Link (ECRL), the Pulau Carey Port development and the LRT3 line, which is targeted to commence operations this year. The projects are expected to improve cargo movement, worker mobility and regional industrial connectivity across Selangor and the Klang corridor.
Separately, Klang has evolved from a traditional port economy into an integrated logistics and industrial hub supported by Port Klang’s expanding cargo throughput, infrastructure upgrades and industrial investments.
Kee said that Port Klang recorded its highest-ever throughput in 2025 at 15.14 million twenty-foot equivalent units (TEUs), compared with 14.64 million TEUs in 2024 (Chart 2).
Around 55% of the TEUs handled were transshipment cargo, while the remainder comprised imports and exports. Kee noted that Port Klang is connected to more than 500 ports globally and handles one TEU every two seconds.
The district’s strategic position along the Strait of Malacca — one of the world’s busiest maritime trade routes — has reinforced Klang’s role as a regional logistics gateway. The growth of industrial activities surrounding Port Klang has also accelerated demand for warehouses, logistics hubs, manufacturing facilities, and e-commerce fulfilment centres across Klang and neighbouring industrial zones.
Kee highlighted Bukit Raja among the major industrial corridors benefiting from this expansion, alongside Port Klang, Kapar, and Shah Alam. Three main highways act as arterial connection from Port Klang towards the west — NKVE (New Klang Valley Expressway), Federal Highway, and Kesas (Shah Alam Highway).
Additionally, Selangor continues to demonstrate resilient growth in attracting foreign direct investments (FDI), supported by its diversified and mature industrial ecosystem (Chart 3). While Johor recorded the strongest growth in FDI inflows, largely driven by the expansion of AI-related investments and data centre developments, questions remain over the long-term sustainability of this momentum.
In contrast, Selangor attracted a broader mix of investments, including data centres as well as higher-value advanced manufacturing projects, reinforcing its position as one of Malaysia’s most established industrial and investment hubs.
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