top of page
Search

Top 5 Emerging Industrial Hubs in Malaysia for High-Growth Investments

  • Writer: Simon Lim
    Simon Lim
  • Jun 23
  • 2 min read

Malaysia’s industrial property market is booming, fueled by global supply chain shifts, manufacturing expansion, and government-driven infrastructure projects. While Klang Valley and Penang remain dominant, new industrial hotspots are emerging—offering lower entry costs, strategic locations, and high growth potential.

This guide explores the top 5 emerging industrial hubs in Malaysia, covering:

Key industries & major investors

Infrastructure & connectivity advantages

Land prices & rental yields

Government incentives driving growth

Future outlook for each location


1. Johor: The Southern Powerhouse

Why Invest?

  • Proximity to Singapore – Ideal for cross-border manufacturing & logistics.

  • Iskandar Malaysia & Pengerang SEZ – Petrochemical, electronics, and data center boom.

  • New rail & road links – RTS Link (Johor-Singapore) and Pengerang Port expansion.

Key Areas:

  • Pasir Gudang (Heavy industries, chemicals)

  • Senai-Skudai (Aerospace, high-tech manufacturing)

  • Pengerang (Oil & gas, energy sector)

Investment Highlights:

  • Land Price: RM 80 – RM 200 psf

  • Rental Yield: 5-7%

  • Major Players: Foxconn, Dyson, LG Chem


2. Kulim (Kedah): The Next Electronics & EV Hub

Why Invest?

  • Silicon Valley of the East – Home to Intel, Bosch, and Infineon.

  • EV & Semiconductor Boom – Attracting Tesla suppliers & battery manufacturers.

  • Kulim Hi-Tech Park Expansion – New industrial plots with tax incentives.

Key Industries:

  • Electric vehicle (EV) components

  • Semiconductor & wafer fabrication

  • Automation & robotics

Investment Highlights:

  • Land Price: RM 60 – RM 150 psf

  • Rental Yield: 6-8%

  • Major Players: Intel, Infineon, AT&S


3. Serendah (Selangor): The New Logistics & Warehouse Corridor

Why Invest?

  • Cheaper alternative to Shah Alam/Klang – Lower land costs with strong connectivity.

  • North-South Expressway (NSE) access – Links to Penang, Johor, and Thailand.

  • Growing demand for warehousing – E-commerce and 3PL expansion.

Key Developments:

  • Serendah Industrial Park – New logistics-focused zones.

  • Future rail freight upgrades – Enhanced cargo transport.

Investment Highlights:

  • Land Price: RM 50 – RM 120 psf

  • Rental Yield: 5-7%

  • Major Players: Ninja Van, DB Schenker


4. Batu Kawan (Penang): The Rising Industrial Star

Why Invest?

  • Penang’s industrial land shortage – Pushing demand to Batu Kawan.

  • Proximity to Penang Port & Airport – Export-friendly infrastructure.

  • Focus on high-value manufacturing – Medical devices, automation, and tech.

Key Industries:

  • Medical technology & devices

  • Automation & precision engineering

  • Data centers & cloud services

Investment Highlights:

  • Land Price: RM 100 – RM 250 psf

  • Rental Yield: 5-7%

  • Major Players: Boston Scientific, Bosch, Lam Research


5. Kerian (Perak): The Agrotech & Green Industry Hub

Why Invest?

  • Government push for agrotech & renewable energy – Solar farms, biotech, and food processing.

  • Lower land costs – 30-50% cheaper than Klang Valley.

  • Upcoming infrastructure – West Coast Expressway (WCE) improving access.

Key Sectors:

  • Agro-industrial parks

  • Renewable energy (solar, biomass)

  • Food processing & halal manufacturing

Investment Highlights:

  • Land Price: RM 30 – RM 80 psf

  • Rental Yield: 4-6%

  • Major Players: FELDA, Nestlé, solar energy firms


Future Outlook: Which Hub Will Grow the Fastest?

  • Johor & Batu Kawan – Best for tech & export-driven manufacturing.

  • Serendah & Kulim – Ideal for logistics & high-tech industries.

  • Kerian – A dark horse for agrotech & green energy investors.


Conclusion: Where Should You Invest?

  • For high-tech & electronicsKulim or Batu Kawan

  • For logistics & warehousingSerendah or Johor

  • For cost-effective agribusinessKerian


Pro Tip: Pair your investment with government incentives (MIDA, Free Zones) for maximum returns.

 
 
 

Comments


One Maker Group Logo

Simon Lim

+6016-448 9663

R17 & R18, LEVEL 5, WISMA SCLAND, EMPORIS,

Persiaran Surian, Kota Damansara,

47810 Petaling Jaya, Selangor

CONTACT US

Purpose
Location
Property Types
bottom of page