AL-SALAM REIT ANNUAL REPORT 2020

58 AL-SALĀM REIT MARKET REPORT SUMMARY Upon its full operation in 2023, KIDEX is anticipated to generate RM17.5 billion in investment value and creating 1,600 job opportunities. Adopting the current trend of automation data exchange in manufacturing technologies comprising cyber- physical systems, the Internet of Things (IoT), cloud computing, artificial intelligence and smart factory, KIDEX will serve as a key enabler to entice Industry 4.0 players to the 2,950 hectares Kulai Industrial Park. In addition, KIDEX will also use sustainable energy generated from the planned Solar Farm and CoGen Plant in the development area. Referring to the CBRE 2020 Asia Pacific Investor Intentions Survey, 30% of investors in the region has strong interest to purchase data centres this year. Demand for data centres is anticipated to rise, boosted by the current global pandemic. With the emergence of new data hubs in this region, a robust and stable data communication network would be beneficial for all stakeholders within Iskandar Malaysia economic corridor specifically for modern enterprises to function and remain competitive. The ongoing trade dispute between United States and China has opened doors of opportunities for Electronics Manufacturing Services (EMS) players to Southeast Asia. Global EMS provider Enics AG (Enics) has landed its first Southeast Asia manufacturing site in i-Park @ Senai Airport City. The 10,000 square metre high-performance industrial electronics factory will be constructed by AME Elite Consortium Bhd; an integrated industrial space solutions provider with estimated completion by early 2021. i-Park @ Senai Airport City factory will be Enics’ eight (8) manufacturing site globally, complementing its present sites across Europe and China. Chem One Group, a Singapore-based oil and gas, petrochemicals and natural resources conglomerate was scheduled to kick off the construction of the Pengerang Energy Complex (PEC) in 2H 2020. PEC aspires to be a world-class petrochemical hub that will add value to the downstream oil and gas value chain in Malaysia. Industrial land sales in Iskandar Malaysia (IM) was seen to be slowing down in 2020 after an uptrend of transaction activities for three consecutive years since 2017. Industrial land in the Iskandar Puteri Corridor were transacted at premium prices compared to other industrial areas in IM due to government promotions and targeting high-tech manufacturing and the biotechnology industry. Infrastructure enhancement and well-planned industrial parks in strategic locations and easily accessible to the airport, seaport and Singapore, are also more sought-after by Multinational Corporations (MNCs). Meanwhile, Senai-Kulai with its proximity to the airport and direct access to major expressways has become the home to the electric and electronics sector with major players such as Panasonic, V.S Industry and Foxcon. Pasir Gudang being the most matured industrial corridor in IM was stable with healthy transaction activity due to its port’s facilities and ability to accommodate heavy industries. (Extracted from CBRE/WTW Research: 2021 Real Estate Market Outlook Malaysia) INDUSTRIAL PROPERTY SUPPLY IN ISKANDAR MALAYSIA PERFORMANCE OF INDUSTRIAL SECTOR IN ISKANDAR MALAYSIA Total Value (RM) 2010 2010 2010 2010 2010 Jan-June 2020 Total Volume (Unit) Total Volume (unit) Total Value (unit) Abbreviation: RM = Ringgit Malaysia Note: Data for the full year of 2020 is based on estimation Source: NAPIC, CBRE | WTC Research 1,200 1,000 800 600 400 200 0 2,500 2,000 1,500 1,000 500 0 Overall Semi-D Detached Total No of Unit Total No of Unit Abbreviation: RM = Ringgit Malaysia, per sq. ft. = per square feet Note: Data for the full year of 2020 is based on estimation Source: NAPIC, CBRE | WTC Research 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0