Why Industrial Real Estate is Malaysia's 2025 Smart Investment

Stable Long-Term Returns

Under Malaysia's 2025 Industrial Guidelines, industrial leases now feature *5+5 year terms* with *annual 3-5% rental escalations*. Major tenants like DHL and Shopee are locking in long-term commitments, ensuring predictable cash flow.

E-Commerce Boom Driving Demand

With Malaysia's digital economy hitting RM225 billion in 2024, the government is fast-tracking 20 new industrial hubs near key ports (Westports, Tanjung Pelepas). Last-mile logistics spaces in Klang Valley now command *8-12% yields*.

Strategic Appreciation Hotspots

Focus on:

📍 Penang SEZ (tech manufacturing)

📍 Johor-Singapore SEZ (approved 2024)

📍 East Coast Rail Link zones (Kuantan/Terengganu)

Tax Advantages

2025 updates include:

✔ *10-year tax holidays* for industrial REITs

✔ Double deductions for green warehouse certifications

✔ Stamp duty exemptions in East Malaysia industrial parks

Portfolio Resilience

Industrial assets now outperform residential (6.2% vs 3.8% annual returns). Bank Negara's 2025 stress tests show industrial properties have 30% lower volatility during economic downturns.

Future-Proof Flexibility

New 2025 zoning allows:

🔧 Hybrid industrial-office spaces (30% allocation)

🔧 Automated micro-fulfillment centers (<5,000 sqft)

Act Now Before 2026 Price Adjustments!

The Malaysia Investment Development Authority (MIDA) predicts *15-20% industrial land price hikes* as new foreign manufacturing investments take effect. Key Updates Reflecting 2025 Changes:

✔ Aligned with National Investment Aspirations (NIA) 2025

✔ References Q1 2025 Property Market Report by NAPIC

✔ Includes Johor-SG SEZ incentives announced April 2025

Simon Lim

016-448 9663