Industrial Property Boom: Key Insights from REHDA Institute’s 2025 Industrial Market Survey

The Malaysian industrial sector is entering a high-growth cycle, supported by strong manufacturing demand, a resilient supply chain ecosystem, and new mega-corridors such as the Johor–Singapore SEZ and Northern Technocity. According to the REHDA Institute & EdgeProp Industrial Special Report 2025, developers and investors remain highly optimistic about the next 24 months, with industrial real estate outperforming almost every other property segment in Malaysia.

This blog summarises the report’s most important findings—tailored for investors, landowners, and businesses exploring factory, warehouse, or industrial park opportunities.

Developer Sentiment: Strong Confidence in the Industrial Sector

The REHDA survey reveals a consistently positive outlook:

• 79% of developers expect higher demand for industrial properties in 2025–2026.
• Logistics, warehousing, and data centres are the top-performing categories.
• Bigger industrial park townships with utilities, digital infra, and ESG features are seeing stronger take-up.

This shows that industrial assets remain a safe haven despite global economic uncertainties, driven by Malaysia’s strength in manufacturing, tech, and regional distribution.

2025 Industrial Investment Trends to Watch

The Special Report highlights several ongoing trends shaping the sector:

1. Expansion of High-Value Manufacturing

Malaysia is seeing rapid growth in:

• Semiconductors & advanced electronics (AE&E)
• EV components and battery manufacturing
• Robotics and automation systems
• Medical devices and specialty engineering

These industries demand clean, modern, high-spec industrial facilities—driving new development across Selangor, Penang, Johor, and Kedah.

2. Rise of Data Centres Across Key States

Data centre demand is booming due to cloud computing, AI, and hyperscale expansion. Key locations include:

• Cyberjaya & Sepang (Selangor)
• Sedenak & Nusajaya (Johor)
• Bayan Lepas (Penang)

These facilities require high-power capacity, fibre connectivity, and stable infrastructure—making industrial parks with strong utilities even more valuable.

3. Growing Need for ESG-Ready Industrial Parks

Tenants and MNCs are increasingly prioritising environmental and sustainability features:

• Solar-ready roofs
• Rainwater harvesting & water-efficient systems
• Energy monitoring and smart building automation
• Green certification and carbon reporting

Industrial parks that meet ESG requirements command higher rentability and attract foreign investors.

Industrial Hotspots Driving Malaysia’s Growth

Selangor – Malaysia’s Industrial Powerhouse

Selangor continues to lead due to central connectivity and demand from FMCG, logistics, and data centre operators. Key areas include:

• Puncak Alam / Eco Business Park V
• Kapar / LINX Avenue
• Puchong / Pulau Meranti II
• Klang North Corridor

Johor – Rapidly Growing with Cross-Border Appeal

The Johor–Singapore SEZ has accelerated demand in:

• Senai Airport City
• Nusajaya Tech Park
• Iskandar Puteri
• Tanjung Langsat & Pasir Gudang

Johor is now a preferred location for companies expanding from Singapore.

Penang – Semiconductor Capital of Malaysia

Penang remains the top choice for high-value electronics manufacturing:

• Batu Kawan Industrial Park
• Penang Science Park
• Bayan Lepas FTZ

Global semiconductor players continue to invest heavily in the state.

Kedah – A New Semiconductor & E&E Growth Zone

Northern Technocity (Kulim) and ECRL-linked zones are seeing rising demand from:

• Chip packaging plants
• Precision engineering factories
• Automation manufacturers

What This Means for Investors

Industrial properties are expected to remain one of the most stable and profitable asset classes in Malaysia due to:

• Steady rental yields from quality tenants
• Strong demand from both local and foreign industries
• Low vacancy rates in prime locations
• Government incentives supporting high-tech sectors

With the Industrial Master Plan (NIMP 2030) pushing for high-tech ecosystems, investors can expect sustained long-term growth.

Start Your Search for Agricultural, Industrial, or Land Investment

• Explore Agricultural and Development Land for Sale
• Browse Industrial Properties in Rural Areas
• See Commercial Assets Supporting Agri-Supply Chains

The 2025 REHDA Industrial Market Survey makes it clear: industrial real estate is set to outperform, making now the ideal time for investors to secure strategic land or factory assets in Malaysia’s fastest-growing regions.