2025 Malaysia Industrial Space Leasing Guide: Key Considerations for Businesses

Securing the right industrial space is a strategic decision that impacts your operational efficiency, compliance, and bottom line. With Malaysia's industrial sector evolving under the 2025 Industry4WRD Policy and NETR (National Energy Transition Roadmap), here's what modern businesses must prioritize when leasing industrial properties.

1. Strategic Location (Compliance with NIP 2025)

• Priority Zones: Target areas aligned with the National Industrial Plan 2025:

  • Klang Valley: Best for logistics (Port Klang/KAJ Highway access)

  • Penang SCORE Zones: Ideal for tech manufacturing

  • Johor-Singapore SEZ: Future-proof for cross-border trade

• New Requirement: Verify EV-ready infrastructure for warehouses under NETR guidelines

2. Space Optimization (Updated MM2H Standards)

• Ceiling Height: Minimum 9m for automated warehouses

• Mixed-Use Allocation: Ensure 10-15% of space meets 2025 Green Building Index office requirements

• Future-Proofing: Confirm capacity for solar panel installations (NETR compliance)

3. Zoning & Legal Compliance

• Cross-check with local authorities (*OneStop-Centre 2025* portal) for:

  • Approved industrial use classes (Manufacturing vs Logistics)

  • New Eco-Industrial Park requirements

  • Foreign ownership restrictions (updated 2025 MIDA guidelines)

4. Lease Terms (2025 Market Standards)

• Flexibility: Opt for 3+3 year terms (vs traditional 5-year) for scalability

• Green Clauses: Negotiate energy-efficiency upgrade cost-sharing

• Exit Strategy: Confirm penalty-free options if relocating to certified Industrial Parks

  
  

5. Total Cost Analysis

Cost Factor	2025 Benchmark
Base Rent	Depending on areas, call us for more information
Utilities	15-20% surcharge for 24/7 operations
Compliance	Mandatory 2% sustainability levy in selected states

6. Property Condition (New 2025 Codes)

• Mandatory Certifications:

  • CIDB Grade G7 for heavy industries

  • Fire Safety Certificate (BOMBA 2025 Standard)

  • Minimum 30% energy-efficient lighting

7. Labor & Talent Access

• Hotspots:

  • Penang: Skilled tech workforce (30% salary premium)

  • Johor: Cross-border talent from Singapore (requires MDEC approval)

• New Requirement: On-site worker hostels need HRDC-certified facilities

8. Growth & ESG Alignment

• Scalability: Confirm adjacent land availability for Phase 2

• ESG Compliance:

  • Rainwater harvesting systems (mandatory in Selangor)

  • EV charging stations (required by 2026)

The 2025 Malaysian industrial leasing landscape demands both strategic vision and technical compliance. Partner with agents registered with MIEA (Malaysian Institute of Estate Agents) to navigate these evolving requirements seamlessly.

Simon Lim

016-448 9663