Key Takeaways
- BProperty is involved in a RM1.3 billion tyre manufacturing joint venture in Malaysia
- Vertiv and Airtrunk are expanding their data centre operations in Malaysia
- French company Carester plans to build a rare earths separation plant in Perak
- Carester has a 10 year joint venture with local miner Malaco Mining Group
- These foreign investments will boost demand for industrial properties in Malaysia
Three Major Foreign Projects Land in Malaysia
In July 2026, Malaysia's industrial sector welcomed three significant foreign investments. These projects not only demonstrate international confidence in Malaysia's manufacturing capabilities but also inject fresh momentum into the local industrial property market.
Tyre Manufacturing Joint Venture: RM1.3 Billion Investment
According to The Star, BProperty is part of a RM1.3 billion tyre manufacturing joint venture. This large scale project will directly drive demand for industrial facilities including production workshops, warehousing, and supporting office spaces.
Data Centre Expansion: Vertiv and Airtrunk
Vertiv and Airtrunk have announced the expansion of their data centre operations in Malaysia. Data centres require high specifications for power supply, cooling systems, and security, creating demand for premium industrial buildings. Such projects typically locate in areas with robust infrastructure, such as Johor or Selangor.
Rare Earths Separation Plant: Carester in Perak
French company Carester plans to build a rare earths separation plant in Perak state. This is part of a 10 year joint venture with local miner Malaco Mining Group. CEO Frederic Carencotte stated that the partnership includes technology transfer and environmental compliance expertise. The joint venture is also seeking permission from local authorities to conduct rare earths mining via in situ leaching in plantation areas across several Malaysian states.
Impact on Malaysia's Industrial Property Market
These foreign projects will affect the industrial property market in several ways:
Demand Growth
Tyre manufacturing and rare earths processing are heavy industries requiring large production and storage spaces. Data centres need specialised high spec buildings. The combined effect will significantly increase demand for industrial properties.
Regional Distribution
The rare earths plant in Perak may boost industrial property development in that state. Data centre and tyre projects are likely to concentrate in Johor, Selangor, or Penang where infrastructure is mature. Investors should monitor factory supply in these regions.
Rental and Value Trends
As demand rises, rents and prices for quality industrial properties may face upward pressure. However, the actual impact depends on project timelines and local supply.
Practical Advice for Business Owners and Investors
If you are considering setting up or expanding industrial facilities in Malaysia, here are some suggestions:
First, secure a suitable location early. Foreign projects may push up rents in popular areas, so acting early helps avoid being priced out.
Second, evaluate infrastructure. Data centres and heavy industries have specific requirements for utilities and transport. Verify these conditions before signing any lease.
Third, stay informed about regulations. Rare earths mining and processing involve environmental approvals. Investors should understand the legal framework.
Fourth, seek professional assistance. Industrial site selection involves technical, legal, and financial considerations. A dedicated industrial property platform can help you make informed decisions.
FactoryHub is dedicated to helping every client find the right factory or warehouse. Whether you need a production facility, storage space, or data centre site, we provide market insights and matching services. Visit our platform to start your industrial property journey.
