PETALING JAYA: Negri Sembilan is poised for a stronger phase of industrial growth, with the state increasingly positioning itself as a high-value manufacturing and digital infrastructure hub that complements, rather than competes with, the Klang Valley, according to RHB Investment Bank.
Following its Negri Sembilan (N9) Investor Conference 2026 on Oct 1, RHB Research said the state continued to offer ample industrial opportunities, supported by 4,807 acres of available industrial land and growing interest in semiconductors, data centres (DCs), aerospace, electric vehicles (EVs) and advanced manufacturing.
The research house said the state’s location south of Greater Kuala Lumpur, together with connectivity to the Kuala Lumpur International Airport (KLIA) and Port Klang, positioned it for the “next wave” of industrial growth.
RHB Research noted that investment approvals in N9 reached a record estimated RM19.1bil to RM19.9bil in 2025, compared with RM7.2bil in 2024. The targeted sectors include semiconductors, aerospace, EVs, DCs and high-value manufacturing.
At the Negri Sembilan Semiconductor Valley (NSSV), part of Malaysia Vision Valley (MVV) 2.0, around 157 acres of the 841-acre development have been taken up by DC operator Vena Nexus, which is building a 450MW facility.
Full completion of its current phase is expected by June 2027, while another 175 acres have been taken up by multinational corporations.
RHB Research also highlighted growing demand for industrial and digital infrastructure at Eco Business Park 7 (EBP 7), which spans 1,195 acres and has an estimated gross development value of about RM3bil. A 222-acre land transaction by Tera Data Centres was cited as further evidence of DC demand in the state.
The research house said DC interest was being driven by spillover demand from Singapore and Johor, with about 10 operators registered and individual projects potentially reaching RM80bil.
However, the state is still awaiting federal Data Centre Task Force guidelines, while operators face requirements involving self-supplied energy, recycled water, zero-water cooling options, research and development, and university partnerships.
Infrastructure improvements could further strengthen N9’s investment proposition. The Seremban-KLIA interchange has been approved and funded, with procurement underway and an estimated construction cost of RM595mil.
The proposed AI Port in Port Dickson is also intended to support industrial parks, international cargo and aerospace-related maintenance, repair and overhaul activities.
RHB Research said N9 ranked seventh among Malaysian states for approved investments in the first half of financial year 2026, while manufacturing investment ranked fourth – its best position to date.
Manufacturing projects also recorded an estimated 80% conversion rate from approved to realised investments over the past five years.
Despite the positive outlook, RHB Research flagged competition from other investment destinations, particularly Penang and Johor, as a key downside risk.
Utility readiness, especially water, gas and electricity, was another weakness that could constrain the state’s ability to accommodate large investors.
