KUCHING: Malaysia’s industrial sector is expected to remain resilient, driven by strong investor interest in logistics, warehousing, and advanced manufacturing despite global economic uncertainties.
According to Knight Frank Asia-Pacific’s latest outlook report, emerging markets in Southeast Asia, including Malaysia, have seen a significant rise in industrial investment volumes, fuelled by favourable government policies and growing investor confidence.
“As businesses reevaluate supply chain strategies, Malaysia’s proactive policies, strategic location, and skilled workforce will further solidify its position as a preferred destination for industrial and manufacturing investments,” it said.
The report also highlighted the increasing role of artificial intelligence (AI) in shaping the industrial sector, particularly in logistics, warehousing, and advanced manufacturing.
The integration of AI-powered industrial parks, it noted, is expected to enhance operational efficiency, predictive maintenance, and sustainability efforts, making Malaysia an attractive destination for both local and foreign investors.
Commenting on the matter, Knight Frank Malaysia Group Managing Director Keith Ooi said Malaysia is transitioning into a high-tech, high-value manufacturing hub, with more sophisticated industrial facilities aligning with global supply chain trends.
“AI-integrated industrial parks will be a game-changer, offering enhanced operational efficiencies, predictive maintenance capabilities, and optimised resource management, ultimately attracting both domestic and foreign direct investments,” he said.
Meanwhile, the report stated that rising global trade tensions, particularly the anticipated tariff increases under a potential Trump administration, are expected to push manufacturers to diversify their production bases.
This shift, it added, is likely to benefit Malaysia as companies seek to mitigate risks and reduce costs.
Knight Frank Malaysia Senior Executive Director of Land & Industrial Solutions Allan Sim said that with trade tensions expected to take centre stage in 2025, particularly in response to Trump’s planned tariff increases against other countries, manufacturers will work to limit risks, manage costs, and explore new markets for production.
“Malaysia’s industrial sector growth, driven by supportive government initiatives promoting industrialisation, infrastructure improvements, and the development of new planned industrial parks integrating AI elements, will further transform the country’s industrial landscape,” he affirmed.
With these developments, he added, Malaysia is poised for sustained growth in 2025, supported by strong government initiatives, infrastructure advancements, and the expansion of AI-integrated industrial parks.
