SECTION 05 pg. 74 AL-SALĀM REIT INDUSTRIAL & OTHERS SEGMENT OUTLOOK Klang Valley: The industrial sector remained stable across the Klang Valley in 2025, driven by e-commerce, logistics and light manufacturing, particularly in areas with proximity to ports and along the logistics corridor such as Shah Alam, Bukit Raja and Port Klang or Pulau Indah. With structural support such as promotion of policy and clarity in focus sectors, the industrial sector showed resilience in rentals and occupancy despite macroeconomic headwinds affecting the global supply chain. Going forward, the Klang Valley industrial sector is expected to sustain its momentum, continued to be driven by e-commerce, logistics and manufacturing. As new supply comes online, the sophistication of warehouses is also improving to allow logistics and e-commerce players achieve operational efficiencies in an increasingly competitive market. Nonetheless, industrial demand is expected to remain robust in line with the expected expansion of national trade and FDI targets in 2026 and beyond. Besides industrial properties along the supply chain corridor, older and underutilised industrial locations such as Petaling Jaya are increasingly experiencing an adaptive reuse of space into commercial and lifestyle hubs due to their prime locations in mature neighbourhoods, bringing vibrancy back to these industrial hubs. This trend is expected to continue into the near future to cater to the lifestyle needs of the younger generation. The REIT also expects data centre demand to remain strong in the Klang Valley despite tighter approval processes and sustained land prices, as infrastructure readiness remains a key investment factor for hyperscalers. Johor: The Johor industrial sector recorded strong growth in 2025, underpinned by FDIs in highvalue sectors such as E&E, renewable energy, and logistics, reflecting a strong investor sentiment. Johor’s committed investments surged to RM91.1 billion by the third quarter of 2025 from only RM18.1 billion in 2024, surpassing all other states, driven by its positioning as a regional data centre and advanced manufacturing hub. In particular, free trade zones and locations with proximity to ports, such as Senai Airport City, Tanjung Pelepas and Pasir Gudang experienced active transactions in line with expansion of warehousing and logistics facilities. Rentals also held stable as supply of new space was modest in 2025. Looking ahead, Johor’s industrial sector is expected to continue its expansion, supported by continued investment into logistics and high-value manufacturing. While growth could moderate due to the exceptionally strong performance in 2025, policy promotions and infrastructure catalysts such as the RTS Link, ART and EDTP are expected to drive investment activity beyond 2026. As Johor continues to strengthen its position as a regional data centre hub, infrastructure readiness and capacity, particularly power and water, remain an overshadowing concern despite strong demand fundamentals. Committed investments and sustained growth in the data centre segment will largely depend on clarity of infrastructure availability. In general, the REIT is optimistic that the Johor industrial market is expected to sustain its momentum into 2026. PORTFOLIO CAPITAL
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