KUALA LUMPUR: Malaysia’s industrial sector is poised to sustain its growth this year, supported by strong government initiatives, infrastructure advancements, and emerging industrial parks integrating artificial intelligence (AI), according to Knight Frank Malaysia.
In a statement today, the real estate consultancy firm said global trade tensions, particularly the possibility of tariff hikes under President Donald Trump's administration, could prompt manufacturers to diversify their production bases, further strengthening Malaysia’s position as a strategic industrial hub.
"With geopolitical uncertainty and trade tensions expected to take centre stage in 2025, manufacturers are likely to prioritise risk mitigation, cost management, and alternative production markets,” it said.
The firm noted that Malaysia is well-positioned to benefit from this shift due to its strategic location, strong government incentives and evolving industrial ecosystem.
The Knight Frank Asia-Pacific outlook report has highlighted the growing role of AI and automation in shaping the industrial sector, particularly in logistics, warehousing, and advanced manufacturing.
The integration of AI-powered industrial parks is expected to enhance operational efficiencies, predictive maintenance, and sustainability efforts, making Malaysia an attractive destination for both local and foreign investors.
Meanwhile, group managing director Keith Ooi said that as Malaysia transitions into a high-tech, high-value manufacturing hub, the company is witnessing a shift towards more sophisticated industrial facilities that align with global supply chain trends.
"AI-integrated industrial parks will be a game-changer, offering enhanced operational efficiency, predictive maintenance capabilities, and optimised resource management, ultimately attracting both domestic and foreign direct investments,” he added. - Bernama
