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Beyond Factories: Why Industrial Ecosystems Matter to Malaysia’s Next Phase of Growth  – Malaysia SME®

by malaysiasme
October 23, 2026
in News
Reading Time: 3 mins read
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KUALA LUMPUR, 22 OCTOBER – Dato’ Marcus Doh, Director of Setia Awan Land Sdn. Bhd states that Malaysia’s industrial future requires shifting from traditional, isolated factory parks towards integrated industrial business ecosystems.Dato’ Marcus Doh believes the answer lies in a shift from traditional industrial parks towards more integrated business ecosystems. Tanjong Malim, Perak, offers a relevant example of this transition.

As Malaysia works towards achieving the goals of the New Industrial Master Plan 2030 (NIMP 2030), the matter of what environments enable high-value industries to grow and remain competitive becomes increasingly pressing.

The Economic Imperative

Manufacturing remains one of Malaysia’s economic backbones, contributing 23% of gross domestic product (GDP) in 2025 and growing at 4.5% annually. To hit the Government’s target of RM587.5 billion (up from RM364.1 billion in 2022), Malaysia must focus on high-value jobs, economic complexity, domestic supply chain linkages, and environmental, social and governmental (ESG) integration.

This is not incremental growth, it is industrial transformation. Achieving these ambitions will require more than additional factory capacity.

Land and Infrastructure Are Now Inadequate

Land cost, Infrastructure, utilities and connectivity remain fundamental to industrial developments. However, businesses are now increasingly looking beyond them. Present manufacturers prioritise operational efficiency through proximity to suppliers, logistics hubs and customers within the same cluster. Workforce considerations also matter, including access to housing, transport, schools and everyday amenities that can support talent attraction and retention.

Businesses also value commercial and business support that can reduce operational friction for employees, suppliers and vendors. Locations that offer ongoing business support, green energy options, expansion, new technologies and flexible operational requirements are just as important.

National Policy Meets Local Execution

NIMP 2030 provides a strategic framework, but its success depends on local execution. The plan identifies six core goals. Dato’ Marcus Doh focuses on the goal to develop new and existing clusters here, which concentrates on strengthening industrial clusters.

In Tanjong Malim, this broader cluster agenda is particularly relevant to the area’s growing automotive and electric vehicle (EV) activity. Proton’s dedicated EV assembly plant in Tanjong Malim began operations in September 2025, and following an expansion announced in 2026 aims to increase its annual capacity of EV assembly from 20,000 to 45,000.

Tanjong Malim’s position as a growing automotive and industrial ecosystem is further strengthened by the Automotive Hi-Tech Valley project and the emergence of other automotive players and industrial developments within the area, including potential completely knocked down (CKD) facilities, and other automotive players.

The investment environment is also supported by initiatives such as the Muallim Speed Lane designed to facilitate investment through rapid approval processes and greater ease of doing business for companies establishing operations in the district. However, what will it take to cement Tanjong Malim’s position as capable of catering to future demands of manufacturers and high-skilled workers?

Tanjong Malim Hi-Tech Park: Applying Ecosystem Thinking

Tanjong Malim Hi-Tech Park (TMHTP) by Setia Awan Land is a practical demonstration of how industrial development can align with national policy while meeting market demands. Dato’ Marcus Doh carefully ensured TMHTP approached the nearby projects differently. TMHTP co-locates industrial, commercial and lifestyle components to shorten worker commute times, enhance productivity and improve overall quality of life.

Ionera, TMHTP’s commercial component is critical to Setia Awan Land. It serves as the central commercial hub for businesses, workers and visitors, featuring an anchor grocer, modern cafes, and daily services, incorporating green technology like solar panels and EV charging stations.

TMHTP’s project reflects a simple principle: industrial activity does not operate in isolation, and the environment surrounding factories increasingly matters to business and their workforce. Setia Awan Land’s previous projects have always prioritised connected living. TMHTP applies that principle to industrial development.

Beyond Factories, Toward Ecosystems

Malaysia’s industrial development is evolving from merely selling isolated factory plots to building complete, interconnected business ecosystems. The opportunity is no longer simply about providing industrial land. It is about creating an environment that fosters business growth, talent needs and the wider community, aligned with NIMP 2030’s ambition for a competitive, high-income and sustainable industrial economy.

Developers must look beyond the factory gate to provide integrated commercial, sustainable, and lifestyle infrastructure that attracts and retains high-skilled talent while strengthening local supply chains.

As Malaysia moves towards 2030, Dato’ Marcus Doh believes the developments that thrive will be those that recognise that factories are necessary, but ecosystems are transformative. Policymakers, developers, and investors must ask whether today’s industrial environments are being planned only for immediate requirements – or for the future needs of businesses, technologies, and the workforce.

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