The outlook for Malaysia’s industrial property market is looking favourable as it is expected to see more enquiries, especially from manufacturers, said independent property consultancy firm, Knight Frank Malaysia.
Knight Frank Malaysia said manufacturers would be looking to take advantage of the tax incentives, adding that the industrial real estate market has remained resilient in the face of the COVID-19 pandemic. They also foresee more international e-commerce operators considering Malaysia as an important regional distribution hub within their network.
Additionally, the firm said the Malaysian government’s move to provide generous tax incentives for foreign manufacturers under the National Economic Recovery Plan would help to position the country as a strong contender in attracting more overseas manufacturing operations to its shores. This is timely given the ongoing major restructuring of global supply chains arising from the aftermath of the pandemic, as well as the ongoing United States-China trade war.
Shah Alam’s industrial to see more redevelopment activities
Mature industrial areas such as Shah Alam in Selangor are to see more redevelopment activities in the near future, said Knight Frank Malaysia.
In its press statement, Knight Frank said that Shah Alam is entering into an early transformation and redevelopment phase from a manufacturing centric location to a modern urban logistics hub. The scarcity of industrial land within the mature and well-connected locale coupled with increasing demand for higher specification logistics facilities have propelled many landowners to capitalise on the trend to redevelop their dated industrial premises. Despite rising land prices in Shah Alam, there are still factors incentivising logistics players to look into the locality. These include Shah Alam’s central location providing opportunities for more delivery runs per day, as well as the advent of construction going into multi-storey to balance the real estate costs.
Notable upcoming redevelopment projects within Shah Alam include the former site of Advance Synergy by Mapletree and the 4.37-acre Xin Hwa site, both at Section 22; and the former FEC Cable site at Section 16. To date, the largest redevelopment site in the locale encompasses the 71-acre former Chemical Company of Malaysia Bhd (CCM) facility.