Malaysia’s industrial sector to stay robust despite global uncertainty
06 Feb 2025
The industrial sector is anticipated to remain resilient in spite of global economic uncertainty, driven by robust investor interest in sophisticated manufacturing, logistics, and warehousing.
Positive government policies and growing investor confidence have contributed to a notable increase in industrial investment volumes in emerging Southeast Asian economies, including Malaysia, according to Knight Frank’s most recent Asia-Pacific outlook study.
Malaysia’s aggressive policies, advantageous location, and highly qualified workforce will further cement its position as a top location for manufacturing and industrial investments as companies reassess their supply chain plans.
The country’s position as a major industrial hub is expected to be strengthened as a result of manufacturers diversifying their production sites due to escalating global trade tensions, particularly the possibility of greater tariffs under a Trump government, the report states.
According to Allan Sim, executive director of Land and Industrial Solutions at Knight Frank Malaysia, manufacturers will work to reduce risks, control expenses, and look into new production markets in 2025 as trade tensions are expected to dominate the news, mainly due to Trump’s proposed tariff hikes against other nations.
“Malaysia’s industrial sector growth, driven by supportive government initiatives promoting industrialisation, infrastructure improvement, and the establishment of new planned industrial parks integrating AI elements, is set to further transform the country’s industrial landscape.”
The report also highlighted the increasing role of AI and automation in shaping the industrial sector, particularly in logistics, warehousing, and advanced manufacturing.
The integration of AI-powered industrial parks is expected to enhance operational efficiencies, predictive maintenance, and sustainability efforts, making Malaysia an attractive destination for both local and foreign investors.
Knight Frank Malaysia group managing director Keith Ooi said, “As Malaysia transitions into a high-tech, high-value manufacturing hub, we are witnessing a shift towards more sophisticated industrial facilities that align with global supply chain trends.”
Ooi said that as companies reassess their supply chain strategies, Malaysia’s forward-thinking policies, strategic position, and skilled labour force will strengthen its standing as a top choice for industrial and manufacturing investments.
Source: NST
