SUNGAI BULOH: AME Elite Consortium Bhd, the developer of integrated industrial parks under the i-Park brand, is bullish on Malaysia’s ability to continue attracting multinational manufacturers, a view underpinning its RM1.3 billion i-Park@Coalfields industrial park in Selangor.
Executive director and group CEO Dylan Tan Teck Eng said geopolitical tensions and the China+1 strategy continue to drive manufacturers to diversify production into Southeast Asia, with Malaysia well positioned to capture a growing share of foreign investment.
“We see growing interest from China because of the trade war and the China+1 strategy. But China is not the only country that is coming here to set up their factories. We also see a lot of other countries as well because Southeast Asia generally is considered to be a more neutral region when the trade war is happening,” he told reporters after the soft launch of i-Park@Coalfields today.
“Malaysia generally is more free from all natural disasters. We have got a multilingual society, multiracial. It appears to be a very friendly country with very good transparent laws. So I think Malaysia positions itself to be a very good country for all these potential investors,” Tan said.
Tan expects Malaysia’s industrial property sector to remain resilient over the next 12 to 24 months despite ongoing geopolitical uncertainties.
“I think industrial development will continue to thrive because of the geopolitical situation that we are facing. Southeast Asia is very neutral and Malaysia is very lucky in the sense that we don’t have major storms or natural disasters. We have ample supply of power and water,” he said.
He added that Malaysia’s multicultural society gives it an edge in attracting investors from both Asia and the West.
“For Chinese investors, they come here and they don’t feel out of place because we have a Chinese community here. Then for those from Western countries, English is not an issue and we are generally very friendly people.”
The optimism underpins AME Elite’s latest expansion into Selangor through i-Park@Coalfields, its first industrial park in the state after establishing its footprint in Johor and Penang.
Developed by Central Gateway Development Sdn Bhd, a 60:40 joint venture between AME Elite and Kuala Lumpur Kepong Bhd’s KLK Land Sdn Bhd, the 151.2-acre i-Park@Coalfields carries a gross development value (GDV) of RM1.3 billion and will be developed in two phases over the next seven years.
Tan, who is also a director of Central Gateway Development, said the industrial park is targeting multinational and local companies in high-value industries, including advanced manufacturing, semiconductors and electronics, automotive, medical and pharmaceuticals, technology-driven sectors, and logistics.
The first phase, with a GDV of about RM200 million, comprises 34 ready-built semi-detached industrial units designed to cater to manufacturers seeking faster operational deployment.
Tan said the company has already secured its first booking following the project’s soft launch and expects site works and construction for the first phase to commence early next year.
“We’re doing a soft launch today. The construction work is probably going to start early next year, so the contribution will start coming in early next year. That’s the target.”
Tan said multinational corporations account for about 70% of occupiers in AME Elite’s Johor industrial parks, representing diverse markets such as Singapore, China, Japan, Europe, and the US.
He added that AME Elite’s established track record has become one of its strongest selling points, with prospective customers often visiting its Johor developments before committing to new projects.
“When customers come to our development in Johor, they see a lot of multinational, big brand names operating in our park. That track record gives customers confidence.
“We hope to continue to uphold the same standard in Selangor. We have a lot of customers who actually fly down to Johor just to visit our industrial parks before making their investment decisions.”
At the same time, Tan said, multinational companies are placing greater emphasis on environmental, social and governance standards as supply chain audits become more stringent.
“People don’t just buy from suppliers anymore. They actually audit their supply chains. A lot of people like our parks because they see well-organised industrial parks with greenery, dormitories, grocery stores and laundry services. When their customers come to audit them, they feel confident they will pass.”
To meet these evolving requirements, i-Park@Coalfields incorporates GreenRE-certified sustainable features, solar-ready rooftops, electric vehicle charging infrastructure, integrated worker accommodation and artificial intelligence-powered security systems.
While optimistic about the sector’s prospects, Tan said rising construction costs remain the biggest challenge facing industrial developers, even as demand for industrial space continues to be supported by foreign investment and manufacturers diversifying their production bases.
Geopolitical tensions have added to cost pressures, particularly through higher energy prices.
“As you know, the Iran war is still ongoing. The increase in oil prices has pushed construction costs up quite a fair bit,“” Tan said.
Despite the challenging cost environment, he said, AME Elite remains well positioned to manage inflationary pressures through its vertically integrated business model, which spans property development, construction, mechanical and electrical engineering services, as well as worker accommodation operations.
