Selangor is Malaysia's industrial powerhouse, offering unmatched connectivity, established infrastructure, and dynamic growth. This guide breaks down key insights for factory and warehouse seekers.
Prime logistics space in the Klang Valley shows steady rental growth (3-5% annually) and high occupancy (85-95%), signaling robust demand. Driven by e-commerce/3PL growth and high-tech manufacturing, freehold industrial assets and well-located leasehold factories remain highly sought after for their stable yields.
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While Selangor leads Malaysia's industrial belt, serious buyers often compare these adjacent states:
RM 112,000
RM 128,500
RM 90,000
RM 100,786
RM 82,272
RM 72,000
RM 149,307
RM 95,748
RM 66,840
RM 55,000
RM 51,000
RM 137,180
Selangor's factory inventory spans these cities, ranked by active listing count. Click any city for area-specific pricing and listings.
Industrial rents vary widely with location (Klang Valley vs. Northern/Southern corridors), built-up area, ceiling height, power capacity (single- vs. 3-phase), dock-levellers, overhead cranes, road access for trailers, and lease tenure. Larger units typically negotiate lower per-sqft rates; build-to-suit and sale-and-leaseback structures price differently again. Always compare multiple comparable units before signing.
Service tax on rental and leasing services for commercial and industrial properties is 6% (reduced from 8% effective 1 January 2026). It is charged on top of the monthly rental and collected by the landlord for remittance to Customs. The annual sales threshold for SME exemption was raised to MYR 1.5M, and newly-registered SMEs receive a 1-year grace period from SST on rental.
Standard factory leases run 2–3 years with an option to renew. Some landlords offer 1-year terms for flexibility. Industrial leases often include a 2-month security deposit plus 1-month advance rent.
Key checks: electrical capacity (3-phase power), water supply, floor loading capacity, ceiling height (minimum 6m for most manufacturing), fire safety compliance, truck access and loading bay availability, and zoning approval for your intended industrial activity.
