Selangor is set to embrace environment, social and governance (ESG) in its industrial growth, according to a whitepaper data for Selangor from Knight Frank Malaysia (Knight Frank).
The firm said today (Oct 19) that one of the key milestones in Selangor’s journey towards sustainable industrial growth is the introduction of the Selangor Managed Industrial Park (MIP) standard guidelines.
These guidelines, established by the Selangor state government, set the development standards for sustainable industrial park projects spanning over 200 acres.
“By adhering to these guidelines, Selangor aims to shape the direction of industrial growth and position itself as the preferred industrialized investment state in Malaysia,” it said in a statement.
The firm said the total approved investments in Selangor in the manufacturing sector expanded 62.5% year-on-year in 2022 to record at RM12.21 billion compared to RM7.51 billion in 2011. This exceeds the initial target of RM10.00 billion set earlier.
“Within the country, Selangor is the top-performing state in the country, boasting a GDP of RM384.87 billion in 2022. This accounts for about 25.5% of the total national GDP, which is RM1,508.12 billion,” Knight Frank managing director Keith Ooi said.
Keith said the paper highlights the exceptional growth in investments can be attributed to the implementation and enforcement of the First Selangor Plan 2021-2025 (RS-1).
“With the implementation and enforcement of RS-1, Selangor is expected to attract more investment opportunities while offering future-proof infrastructure for potential investors.”
Ooi said the report also notes the evolving landscape of ESG practices within Selangor’s industrial real estate sector presents both challenges and opportunities.
“The adoption of ESG principles has become a driving trend, leading to a surge in sustainable investments and a concerted effort to mitigate global climate change.
“Under the RS-1 initiative, two regions, Sepang and Kuala Langat, have been identified as key areas for development. A post-pandemic initiative under RS-1, Integrated Development Region in South Selangor (IDRISS) is one of the geographic-focused developments, created to stimulate the state economic growth through the integrated investment development by private developers.”
