Press Release : Setia Awan Land – Beyond Factories: Why Industrial Ecosystems Matter to Malaysia’s Next Phase of Growth
Comments by Dato’ Marcus Doh, Director, Setia Awan Land Sdn. Bhd.
Malaysia’s industrial future will not be shaped by land supply alone, but by the strength of the ecosystems that grow around it.
As the nation works towards the ambitions of the New Industrial Master Plan 2030 (NIMP 2030), the question facing policymakers, developers and investors is increasingly not only where factories can be built, but what environments can be created to enable high-value industries to grow and remain competitive.
I believe the answer lies in a broader shift from traditional industrial parks towards more integrated business ecosystems. Tanjong Malim, Perak, offers one relevant example of this transition.
The Economic Imperative
Manufacturing remains one of Malaysia’s economic backbones, contributing 23% of GDP in 2025 and growing at 4.5% annually. This is poised to grow by 2030; the Government is targeting manufacturing value added of RM587.5 billion by 2030, up from RM364.1 billion in 2022.
This is not incremental growth; it is industrial transformation. Achieving these ambitions will require more than additional factory capacity.
As such, forward-moving plans emphasise economic complexity, high-value job creation, stronger domestic linkages and ESG integration, all of which depend on stronger industrial clusters and the wider ecosystems that support them.
Land and Infrastructure Are No Longer Enough
For decades, industrial developments competed primarily on land cost, infrastructure, utilities and connectivity. Ultimately, these remain fundamental, but businesses are increasingly looking beyond them.
Today’s 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. Just as importantly, long-term scalability remains a key consideration, with companies looking for locations that can support expansion, new technologies and changing operational requirements over time.
National Policy Meets Local Execution
Towards this end, the NIMP 2030 provides the strategic framework, but its success depends on local execution. The plan identifies six core goals; of relevance here is the goal to develop new and existing clusters, which focuses on strengthening industrial clusters.
In Tanjong Malim, this broader cluster agenda is particularly relevant to the area’s growing automotive and EV activity. Proton’s dedicated EV assembly plant in Tanjong Malim began operations in September 2025. Following an expansion announced in 2026, Proton now 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. This includes potential new CKD facilities in the near future, with other automotive players still assessing their plans on this front and recently announced investments from other industrial manufacturers.
The investment environment is also being supported by initiatives such as the Muallim Speed Lane, which is designed to facilitate investment through faster approval processes and greater ease of doing business for companies establishing operations in the district.
Together, these developments are broadening Tanjong Malim’s industrial base and strengthening the ecosystem around automotive, advanced manufacturing and supporting industries.
But the question to ask is, what will it take to cement Tanjong Malim’s position as one that is capable of catering to the future demands of manufacturers and high-skilled workers alike? While the foundations for an expanded industrial complex are certainly there, it is the supporting ecosystems that must be addressed.
Tanjong Malim Hi-Tech Park: Applying Ecosystem Thinking
Within this context, Tanjong Malim Hi-Tech Park (TMHTP) by Setia Awan Land offers a practical demonstration of how industrial development can align with national policy while meeting market demands.
Having led the inception of the project, we took great care to ensure TMHTP took a different tact to the many ongoing projects in the vicinity. What distinguishes TMHTP is its broader approach to industrial development – the creation of a total industrial ecosystem that integrates industrial land with commercial amenities and supporting services that respond to the daily needs of businesses and the workforce.
This is why Ionera, TMHTP’s commercial component, is so critical to our plan. It exemplifies this broader approach by providing everyday services and amenities for businesses, employees, and visitors within the development.
Beyond convenience, Ionera’s masterplan puts high-tech at the core, with priorities on sustainability and green energy through the inclusion of solar panels and EV charging stations, which both cater to modern-day demands and ensure a space that is clean, conducive, and sustainable. Ionera also boasts an anchor grocer, modern cafes, and convenient daily amenities to support the needs of the industrial community.
Ultimately, for us at Setia Awan Land, the totality of the TMHTP project reflects a simple principle: industrial activity does not operate in isolation, and the environment surrounding factories increasingly matters to businesses and their workforce.
We did not see it simply as an ancillary development; in fact, it is core infrastructure.
Embedding commercial and lifestyle components directly into the industrial ecosystem was a key priority when conceptualising TMHTP, as we knew it would address the talent attraction and retention challenges that have been earmarked as critical enablers. It also creates domestic linkages and local supply chain support that the NIMP 2030 plan emphasises.
Our previous projects have always prioritised connected living – TMHTP takes that principle and layers it onto industrial developments. Integrated planning requires masterplans that co-locate industrial, commercial and residential components to reduce commute times, enhance productivity and improve quality of life.
Beyond Factories, Toward Ecosystems
The rise of industrial business ecosystems marks a pivotal evolution in Malaysia’s industrial landscape. Tanjong Malim offers a useful lens on how national policy, local execution and market demand can converge to support a broader automotive and high-tech cluster, attract investment and create new economic activity around an established industrial anchor.
The game has changed. The opportunity is no longer simply about providing industrial land. It is about creating an environment that supports business growth, talent needs and the wider community, in line with NIMP 2030’s ambition for a competitive, high-income and sustainable industrial economy.
For developers, this means looking beyond the factory gate and planning industrial locations that can support operations, attract and retain talent, and adapt as industries and business needs evolve.
As Malaysia moves toward 2030, I believe the developments that thrive will be those that recognise a simple truth: factories are necessary, but ecosystems are transformative. The question for policymakers, developers, and investors is 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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