Selangor launches new IoT-enabled industry park to accelerate Industry 4.0 adoption

• In its initial phase, the IEIP project covers 17 selected industrial parks across different business models, development stages and stakeholders.

KUALA LUMPUR (Oct 8): To prepare Selangor for the next step in Industry 4.0, the state government officially launched the IoT Enabled Industrial Park (IEIP), an initiative that promotes the implementation of smart technologies across selected industrial parks in the state.

IoT, or the Internet of Things, is a network of connected devices over the internet that collect, transmit and exchange data with one another to fully automate and improve the overall efficiency of the connected network.

The launch was officiated by Selangor State Executive Councillor Muhammad Fahmi Ngah at the 9th Selangor International Business Summit 2025, held at the Kuala Lumpur Convention Centre.

This initiative builds on Selangor’s success, with the state’s GDP contributing 26.2% to the federal GDP. Fahmi said that making a fully connected industrial park would further increase the state’s economic contribution.

“We believe that manufacturing in the state will have to move into fully automated manufacturing. Factories that require robots to talk to robots, factories that require the use of artificial intelligence (AI) to manage robotics and production lines, and technicians that would have the ability to code up necessary AI codes to manage these industrial parks and these automated factories,” said Fahmi.

In its initial phase, the IEIP project covers 17 selected industrial parks across different business models, development stages and stakeholders. These include the Pulau Indah Industrial Park, Banting Industrial City, Eco Business Park V, Subang Aerotech Park and UMV High Value Manufacturing Park.

Fahmi added that the IEIP is part of a larger strategy aligned with the state’s goal of becoming the first in Malaysia to achieve 100% 5G coverage in populated areas by the end of 2025. With strong 5G connectivity, this IoT-powered industrial park can reach its full potential.

“We also wanted to look at developing 5G private networks to be used in these automated plants and factories,” said Muhammad Fahmi Ngah at the launch of the IEIP.

Within the proposition outlined in the IEIP, Fahmi noted four key recommendations to be incorporated into these smart IoT plants and factories from the Selangor state government, which are CCTVs, as well as air quality, energy consumption and water consumption monitors.

“We also recommend that these factories, on a voluntary basis, share these environmental parameters with the state government. I think we are looking at whether we can further incentivise these plants to reduce their emissions or to get into compliance with the necessary targets,” said Fahmi.

The IEIP is designed to align with the Selangor Development Plan 1 (RS-1), as well as the MyDigital Blueprint and the New Industrial Master Plan 2030.

Fahmi is optimistic that the plans laid out for the IEIP make it clear to businesses how much is needed to spend for parts to enable IoT devices and systems, and that once incorporated properly, the necessary environmental data can be shared with the state government.

“These parts will be equipped with IoT connectivity and 5G infrastructure, including private networks, AI systems and intelligent utilities, creating an ecosystem that supports high-value industries and sustainable growth.

“So the IEIP essentially provides a structured roadmap covering infrastructure planning, policy development, cybersecurity policies, stakeholder engagement and performance monitoring,” said Fahmi.

Invest Selangor is expected to play a key role in promoting the IEIP to local and international investors, showcasing Selangor’s readiness to embrace Industry 4.0 and attract high-value industries and investments.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.