Elevating Malaysia’s Industrial and Logistics Sector with Progressive Market Solutions

Elevating Malaysia’s Industrial and Logistics Sector with Progressive Market Solutions
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The basis for competitive advantage in the industrial and logistics sector is rapidly evolving, with the exponential growth of e-commerce driving global demand for the sector. On the local front, a recent independent market research report by Statista shows that the total revenue from e-commerce in Malaysia will reach approximately US$10.95 billion (RM45.81 billion) in 2025, with the segment driving demand for more warehousing space in the nation.

Understanding the market’s needs and buoyed by the strong growth of e-commerce, Sime Darby Property in partnership with LOGOS Property is set to capitalise on the significant opportunities for expansion of its industrial and logistics sector with the newly established E-Metro Logistics Park.

A new logistics player

Located in its Bandar Bukit Raja township in Klang, Selangor, the E-Metro Logistics Park is the maiden asset of SDPLOG - the joint venture between Sime Darby Property and Asia Pacific logistics specialist LOGOS Property - to establish an industrial development fund (Fund) focusing primarily to develop and invest in built-to-suit to lease or sell assets, for clients in the logistics sector.

This venture will further drive the establishment of thriving industryled communities, with job creations for the population living within and around the township. Sime Darby Property Group Managing Director, Dato’ Azmir Merican said, “In this joint venture, we contribute valuable developmental capabilities and strategically located landbanks in the partnership, while leveraging on LOGOS Property’s strong experience in fund management and logistics property development.”

“The creation of sustainable, integrated logistics assets with implementation of the latest warehouse automation technology for tenants and end-users will allow Sime Darby Property to activate and monetise its landbanks efficiently,” said Dato’ Azmir.

"The creation of sustainable, integrated logistics assets with implementation of the latest warehouse automation technology for tenants and endusers will allow Sime Darby Property to activate and monetise its landbanks efficiently." - Dato’ Azmir Merican, Sime Darby Property Group Managing Director

The eco-friendly E-Metro Logistics Park is a 177-acre development to deliver efficient industrial and logistics solutions with world-class expertise and facilities equipped with sustainable green features and seamless connectivity via land, sea and air.

The new logistics park is easily accessible via major highways such as the New Klang Valley Expressway (NKVE), Federal Highway, New North Klang Straits Bypass (SHAPADU) and the recently opened West Coast Expressway (WCE). These expressways connect E-Metro Logistics Park to major logistics hubs such as Port Klang and the Kuala Lumpur International Airports, and significantly to other Sime Darby Property industrial parks located in the City of Elmina, Serenia City and Hamilton Nilai City among others.

The E-Metro Logistics Park will benefit from the high demand for logistics and warehousing solutions in the Klang Valley, following global trade flows and supply chain development in addition to a shift in consumer preference for goods that are bespoke and custom-made for their needs.

A prospective regional hub

According to real estate consultant CBRE APAC at the recent REHDA Institute’s CEO Series 2022 Annual Property Developers Conference, investors are especially keen on logistics investments, with an estimated 70% of increased enquiries in Asia Pacific.

This positions E-Metro Logistics Park as a great prospect for investors as Malaysia is within one of the fastest growing economic regions in the world, with Southeast Asia recording an average Gross Domestic Product growth of 5.3% per annum over the last 20 years.

Investors are presented with the opportunity to diversify their investment portfolio in a growing sector; enjoy competitive yield and returns across investment period and benefit from long-term sustainable  pipeline for development.

Coupled with its highly diversified economic and export structure, with developed integrated ecosystems, supportive labour market and a strong and well-capitalised financial sector, the Fund positions Malaysia as a smart and invaluable investment location for investors.

With approximately 2,800 acres of strategically located industrial landbanks along the west of peninsular Malaysia, Sime Darby Property has earmarked choice land parcels for future Fund developments, each with different value propositions to cater to a variety of business needs.

"We are very pleased to be partnering with Malaysia’s leading property developer, Sime Darby Property in this new joint venture. There is great synergy in providing highquality logistics space to support economic growth in Malaysia." - David Aboud, LOGOS Property Head of Malaysia

“We are very pleased to be partnering with Malaysia’s leading property developer, Sime Darby Property in this new joint venture. There is great synergy in providing high-quality logistics space to support economic growth in Malaysia,” said LOGOS Property’s Head of Malaysia, David Aboud.

He added, “There is a clear trend in the new structure of modern economies that will deliver exceptional growth in the e-commerce and food logistics sectors, and this will demand increasing  sophistication in built logistics space. We look forward to working with Sime Darby Property.”