The Malaysia Market Outlook Seminar 2025, hosted by Knight Frank Malaysia (KFM) in collaboration with the Asia Pacific Real Estate Association (APREA) and UEM Sunrise, brought together key industry leaders, investors, and government representatives to discuss foreign investment opportunities in Malaysia’s industrial and data centre sectors. The seminar underscored Malaysia’s potential as a strategic hub for global investors, offering insights into emerging market trends, government incentives, taxation and infrastructure development.
Sigrid Zialcita, CEO of APREA, said, “The rise of Malaysia, particularly Johor, as a prime destination for industrial and digital infrastructure investment underscores its growing importance in the regional economy. With the Johor-Singapore Special Economic Zone creating new avenues for growth, Malaysia is poised to attract more institutional capital, reinforcing its position as a strategic gateway to Southeast Asia.”
A major highlight of the event was a presentation by Lee Kun Thye, Director and Head of the Johor Branch, Knight Frank Malaysia, who spoke on “Emerging Market: Industrial & Data Centre Landscape.” Her insights underscored Malaysia’s growing appeal as a prime destination for foreign direct investment (FDI), fueled by infrastructure development, government incentives, and the country’s rising prominence in the digital economy.
A Collaborative Effort to Drive Investment
The seminar featured speakers from across the industry, each offering a unique perspective on Malaysia’s investment landscape. Md Eharay Abd Majid from Invest Malaysia Facilitation Centre Johor (IMFC-J) highlighted Johor’s rapid economic growth, with a strong focus on the Johor-Singapore Special Economic Zone (JS-SEZ). He emphasized how the JS-SEZ will enhance cross-border trade, attract high-value investments, and further solidify Malaysia’s position as a global investment hub.
Heng Wai Mun, CEO of YTL Data Centers, discussed the expanding data centre ecosystem, emphasizing how Malaysia’s digital infrastructure is primed to support global demand. Meanwhile, Renee Ho, Director at Deloitte Malaysia, provided valuable insights into tax incentives available for businesses investing in data centres and digital infrastructure.
UEM Sunrise (UEMS) shared its vision for Johor’s evolving real estate landscape, highlighting key projects that align with the state’s push for economic growth and investment attractiveness. The seminar was proudly hosted at the newly established UEM Sunrise Gallery in Iskandar Puteri, a center dedicated to transforming vision into reality. Chief Operating Officer for Township, Saniman Md Apandi, and Head of Strategic Master Planning, Ilylia Ilyani, presented the company’s masterplan to unlock value creation in Iskandar Puteri, designated as Flagship Zone B within the JSSEZ. As the master planner of Iskandar Puteri, UEM Sunrise reaffirmed its commitment to catalyzing Johor’s growth ambitions, reinforcing its role as a key driver of sustainable urban development.
Johor: A Rising Investment Hub
Johor has rapidly emerged as a key player in Malaysia’s economic landscape, with its proximity to Singapore and robust industrial ecosystem positioning it as a global investment destination. The state has seen increased interest from multinational corporations looking to expand operations, particularly in manufacturing, logistics, and technology-driven sectors.
Lee emphasized that “Johor’s industrial market is evolving rapidly, supported by strong government initiatives and infrastructure growth. The state’s strategic location, coupled with competitive incentives especially under the JS SEZ, makes it an attractive proposition for investors looking at long-term growth in Southeast Asia.”
The Data Centre Boom: Unlocking Malaysia’s Digital Potential
Malaysia’s data centre market has been experiencing exponential growth, driven by the rise of cloud computing, artificial intelligence, and digital transformation, with 78.6% of the operational IT capacity in Johor where this is expected to breach the 1GW threshold in the next few years upon completion of the pipeline supply. The seminar featured a dedicated session on “Unlocking Opportunities in Malaysia’s Booming Data Centre Ecosystem,” highlighting the increasing demand for data infrastructure and Malaysia’s strategic role in meeting this global need.
Knight Frank Malaysia reinforced that Johor is well-positioned to become a leading data centre hub, backed by its access to land, power availability, and government-backed incentives that support digital infrastructure investment. Sustainability also remains a key priority, with a growing emphasis on green data centres and renewable energy integration to align with global ESG goals. Additionally, with the government’s push towards AI-driven data centres, Malaysia is gearing up to support the next generation of high-performance computing, further solidifying its position as a key player in the region’s digital economy.
Government Incentives and Policies Attracting Investors
The Malaysian government has been proactive in rolling out policies that encourage foreign investment in high-growth sectors. The seminar also highlighted the incentives available under the Johor-Singapore Special Economic Zone (JS SEZ), which offer significant benefits for businesses looking to establish a presence in Johor. In addition to tax incentives, grants, and facilitation programs designed to support investors in the industrial and data centre markets, the JS SEZ framework provides streamlined regulatory processes, cross-border trade facilitation, and enhanced infrastructure support, making Johor an even more attractive destination for digital and industrial investments.
Allan Sim, Senior Executive Director of Land & Industrial Solutions at Knight Frank Malaysia, also shared his perspective on Malaysia’s industrial growth, stating, “Malaysia is at the forefront of attracting high-value industrial and logistics investments. With strong fundamentals and investor-friendly policies, we see significant opportunities for businesses to thrive in this market.”
A Future-Ready Investment Destination
The seminar concluded with a strong consensus that Malaysia, and Johor in particular, is poised for significant investment growth. With infrastructure developments, digital transformation, and pro-business policies in place, the country continues to be an attractive destination for global investors.
As the host of the seminar, Knight Frank Malaysia remains committed to working alongside investors and stakeholders to navigate this dynamic market, providing expert insights and strategic guidance to optimize investment potential.
Download Knight Frank Malaysia recent report here:
Data Centre report 2024: https://kf-my.com/DC-report-DEC2024
Real Estate Highlights 2H2024: https://kf-my.com/REH2H2024-FULLREPORT
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