- 8 minutes ago
Pasaran hartanah industri Malaysia kini berada dalam fasa pertumbuhan paling rancak, dipacu pelaburan pusat data, logistik e-dagang dan pembuatan E&E. Dengan nilai transaksi melonjak 22% dan lebih RM57 bilion pelaburan pusat data disahkan, sektor ini berkembang pesat — namun persoalan timbul mengenai kapasiti, kelestarian penyewa, tekanan sewa dan risiko jangka panjang. Temubual bersama Siva Shanker menilai pendorong permintaan, cabaran struktur serta prospek tiga hingga lima tahun akan datang.
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00:00Malaysia's industrial property market is entering one of its strongest growth cycles,
00:05driven by surging investments in data centres, e-commerce logistics and E&E manufacturing.
00:10In 2024, industrial property transaction values jumped 22% year-on-year in the third quarter
00:16to RM7.2 billion, signalling rising investor interest.
00:21Malaysia has also secured more than RM57 billion in data centre investments
00:26with a total pipeline valued at RM149 billion, underscoring its accelerating role in regional digital infrastructure.
00:34Looking ahead to 2026, industrial assets are expected to remain the standout reformer,
00:39fuelled by digitalisation and increasing AI-related infrastructure needs.
00:43At the same time, key hubs such as Kuala Lumpur, Penang and Johor continue to record firm rental growth
00:49and rising industrial land values, driven by strong interest from MNCs, logistics operators
00:55and global tech companies.
00:57And Penang remains a major E&E manufacturing centre,
01:00while Johor has rapidly emerged as a significant data centre cluster
01:04linked to Singapore's expanding digital ecosystem.
01:07And this momentum, however, raises new questions.
01:10Can incoming supply keep pace with demand?
01:13And how sustainable is tenant quality?
01:15And what risk could reshape Malaysia's industrial narrative beyond 2026?
01:19So, to answer these questions, we have Siva Shankar, Director, Real Estate Agency,
01:24Rahim Enko, Chesterston, on the line.
01:26Good morning, Siva. How are you?
01:28Good morning. Hi. Thank you very much. Happy to be here.
01:32Thank you for being here with me, Onya Gawani.
01:34First question, I would like to know, is what we're seeing in industrial market
01:38a post-pandemic rebound or actually a structural repositioning of Malaysia
01:42within regional supply chains?
01:44And what data convinces you either way?
01:48Okay.
01:50So, this is no sudden surge.
01:53What we are seeing is very slow and steady growth
01:58that has been held very steady over the last 10 years.
02:03Even in the five years before COVID,
02:07when all the other sectors of the property market was on a decline,
02:11you know, you must remember that 2015, 2016, 2017, 2018,
02:20we've seen the property market declining.
02:24But in all those years, the industrial market held very firm and very steady.
02:29And yes, there was a bit of a dip during the COVID years,
02:34but it recovered very quickly in 2022 and has been moving ahead
02:39right up to even last year in 2025.
02:43The industrial market still recorded a positive.
02:49When we break down the demand that we see today,
02:52in your opinion, Siva, which segment is generally leading?
02:55Is it the e-commerce and third-party logistics?
02:57Is it the data centers or E&E manufacturing?
03:01Or perhaps the multinational relocation activity?
03:04What are your opinion on that?
03:06Okay.
03:07So, I think it's a bit of everything.
03:10You've asked a very important question.
03:11I think it's a bit of everything.
03:13Of course, immediately after COVID,
03:17what was very apparent was the surge in e-commerce warehousing.
03:24So, the big part of the market,
03:27the industrial market was really warehousing.
03:30People needed somewhere to store their goods.
03:34So, because of the surge in e-commerce.
03:38So, that took a big leap ahead.
03:42But in the last couple of years,
03:44we've seen the data center boom,
03:47all of a sudden come into Malaysia
03:50and take a big portion of the industrial market.
03:54And that's mainly due to the fact
03:56that Singapore imposed a moratorium on data centers.
03:59And so, the data centers came into Malaysia.
04:02Of course, I think Singapore now has reversed their decision.
04:06But maybe a bit too late now
04:08because the play into the Malaysian market has come in.
04:13We are able to offer cheaper land,
04:16cheaper materials,
04:18cheaper workmanship,
04:20cheaper labor as compared to Singapore.
04:22So, data centers have led the way forward.
04:26And I think in the last couple of years,
04:28last few years,
04:29the government has made all the right noises
04:32and has been marketing Malaysia
04:34as a business-friendly environment.
04:38The slogan,
04:40the mantra, of course,
04:42is Malaysia is open for business.
04:44Come and invest in Malaysia.
04:46We are a friendly nation.
04:47We will make things easy for you.
04:51And I think that's led a bit of a growth as well.
04:55So, it's a combination of all three.
04:58As what you were saying,
04:59which actually of these demand drivers
05:02has the strongest staying power
05:03over the next three to five years?
05:05What's your outlook?
05:06Now, in my opinion,
05:09I think if we want the industrial market
05:13to hold steady and keep going forward,
05:17the bread and butter will be the FDI.
05:21We must go back to basics.
05:23We must be able to build factories
05:27that are producing something.
05:29So, the idea should be that
05:32I buy goods.
05:34I buy many different types of goods.
05:37I assemble and I sell something
05:40and make a profit in doing so.
05:43And that, I think,
05:44is the most fundamental
05:45of all industrial activities.
05:50The data center and the warehousing,
05:53I think that could be a bit of a lifespan.
05:56The surge could go down.
05:58And if the surge does go down,
06:01then we will see supply
06:04overtaking demand.
06:06But if we can continue investments
06:08into manufacturing,
06:10that, I think,
06:11is the sustainable one.
06:16That's on the figures.
06:18We've seen from rental growth
06:19and also rising industrial land values,
06:22particularly in Klang Valley,
06:24Pening and also Johor.
06:26Realistically,
06:27are we beginning to see rental resistance
06:28from occupiers?
06:30And at what point
06:31do rising land
06:32and also development costs
06:35start compressing yields
06:37and also affecting
06:37Malaysia's competitiveness as a whole?
06:41So, here's the thing.
06:42I think yields have already started
06:44to get a little bit compressed.
06:47These are sometimes things
06:49that we don't want to see
06:50or don't want to accept.
06:51But as values go up
06:54and if rents don't follow,
06:57then the yield compresses.
06:59So, there is a bit of resistance
07:02to rental increases,
07:04although rents have increased.
07:06I'm not saying it hasn't.
07:07It has increased.
07:09But I think it hasn't increased
07:12to keep in line
07:14with capital value increases.
07:17So, in the last few years,
07:21we have seen yields
07:22drop a little bit.
07:24I've mentioned earlier
07:26about the Malaysia's
07:28industrial property market
07:29entering one of its
07:31strongest growth cycles.
07:32But strong performance
07:34always or often
07:35tracks aggressive supply.
07:37So, what does the incoming
07:38industrial pipeline look like
07:40over the next perhaps
07:4124 to 36 months?
07:43Are we at risk of oversupply,
07:45particularly in logistic parks
07:47or speculative developments, Siva?
07:52You're asking me
07:53all the difficult questions.
07:55There is.
07:59It is a double-edged sword.
08:01You must understand
08:01that a success
08:03in any sector of the market
08:06will bring demand
08:08into that sector.
08:10Sorry, will bring supply
08:12into that sector.
08:13So, it's like a double-edged sword.
08:15And if we are not careful,
08:17if we don't weigh
08:19supply and demand carefully,
08:21then we might have a situation
08:23of supply overtaking demand.
08:26See, right now,
08:27I think the industrial market
08:28is as close to equilibrium
08:31as it can be.
08:33There is never a perfect market.
08:34So, we will never see
08:36perfect equilibrium
08:38of supply and demand.
08:39But if that close
08:41is close enough,
08:43then I think
08:44we are already
08:45on steady footing.
08:47But if
08:48the industrial market
08:49continues
08:50its current
08:51successful run,
08:53and if more players
08:54enter into the market
08:56with more
08:57incoming supply,
08:59then I think
09:01it extends
09:02to reason
09:03that if demand
09:06cannot keep up,
09:07then we might see
09:08a slight
09:09oversupply situation.
09:10Yes.
09:11So, we have to be
09:11careful of that.
09:13But absorption
09:14is one thing.
09:15I want to know
09:16how strong
09:17is tenant quality?
09:18Are landlords
09:19securing
09:20long-term leases
09:21from multinational
09:22corporates,
09:22or are we seeing
09:24shorter commitments?
09:25And is there
09:25now a widening
09:26performance gap
09:27between high-spec,
09:28EICG-compliant
09:30facilities,
09:30and also
09:31older industrial stock?
09:33What are your thoughts?
09:35Okay, I think
09:36tenant retention
09:38has held
09:39very steady.
09:40My opinion
09:41is industrial
09:42tenants
09:43are very steady
09:44and very strong.
09:46All the industrial
09:47players
09:47have been
09:49reporting
09:50very good results.
09:51All the REITs,
09:53the developers
09:54who've gone
09:54into industrial,
09:56the asset managers
09:57who've gone
09:57into industrial,
09:58they've all
09:59reported
10:01very good results.
10:03so tenants
10:04have held
10:05steady.
10:05Even the
10:07SST,
10:09they have
10:10very comfortably
10:11absorbed the SST.
10:13Of course,
10:13there was a bit
10:13of a hesitation,
10:15but the markets
10:16absorbed it,
10:17so that's going
10:18very well.
10:19They are signing
10:20long leases.
10:21The industrial
10:22leases are the
10:23most steady ones
10:24because they're
10:24very long,
10:26and there is
10:27a built-in
10:29increase in rent
10:30every few years.
10:31so your yield
10:33keeps getting
10:34better and
10:34better and
10:35better over
10:35time.
10:37So I think
10:38industrial
10:39tenancies
10:40and leases
10:41are holding
10:41very steady.
10:43Last one
10:44before we wrap
10:44up.
10:45Looking forward,
10:45if we look at
10:462026 and beyond,
10:47what is the
10:48single biggest
10:49risk to this
10:50industrial growth
10:50narrative,
10:51and what should
10:52investors and
10:53developers be
10:54most cautious
10:55about right now?
10:57I think we
10:58should be a
10:58little bit
10:59cautious about
11:00overbuilding.
11:01I don't
11:02think the
11:02industrial market,
11:04it's a bit
11:06inelastic,
11:07right?
11:08Supply,
11:09demand doesn't
11:10increase overnight.
11:11You can't
11:12create demand
11:13where there
11:13isn't one.
11:14So growth
11:15has to be
11:16slow and
11:16steady,
11:17organic,
11:18and I think
11:19building needs
11:19to be tempered
11:20with where
11:21the demand
11:22is.
11:23So we
11:24should,
11:24if we build
11:25carefully,
11:26if we build
11:27to suit
11:28or if we
11:29build
11:30according to
11:31demand,
11:32then I think
11:32the industrial
11:33market will
11:34continue to
11:34have legs
11:35to run
11:36for some
11:38years to go.
11:39So what we
11:40can say now
11:41is Malaysia's
11:42industrial sector
11:42is powering
11:43through one
11:44of its
11:44strongest
11:44phases yet,
11:45but the
11:46real story
11:46lies in
11:47whether this
11:47momentum
11:47can be
11:48sustained,
11:49and the
11:49question now
11:49also is
11:50how well
11:51the market
11:51can balance
11:52expansion,
11:53quality,
11:53and also
11:53long-term
11:54stability.
11:55So that
11:55was Siva
11:56Shankar,
11:56Director
11:56in Real
11:57Estate
11:57Agency,
11:58Rahim
11:58and
11:58Co-Chastetans.
11:59Thank you
12:00so much.
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