Where will workers live? A look at Malaysia’s new industrial–residential corridors

This article first appeared in the Industrial Special Report in November 2025.

Malaysia’s industrial expansion is now showing up in the housing market, and will soon reshape where people live.

As Johor strengthens its cross-border manufacturing base, and semiconductor investment deepens in Penang and Selangor, developers are turning their attention towards housing patterns linked to the movement of skilled workers.

EdgeProp’s review of new projects shows that the country’s strongest industrial corridors are quickly becoming centres for new housing, from logistics-linked zones to semiconductor and advanced manufacturing hubs.

Johor–Singapore Special Economic Zone (JS-SEZ), the new cross-border work zone

Johor is seeing the strongest residential shift among Malaysia’s industrial corridors, driven by the JS-SEZ, and accelerated investments in logistics, data centres, and advanced manufacturing. As Singapore-based firms expand into Nusajaya Tech Park, Southern Industrial Logistic Clusters (SiLC), and Sedenak Tech Park, housing demand is converging around neighbourhoods that offer fast commutes, stable rental markets, and township-grade amenities. Iskandar Puteri remains the anchor. With UEM Sunrise Bhd holding more than 4,600 acres across the Southern Industrial and Educity belt, its townships have effectively become the residential backbone for Johor’s fast-growing manufacturing and data centre cluster.

Whether it is low-density living in Aspira Hills, or newer high-rise options near Puteri Harbour, the appeal lies in well-planned neighbourhoods that sit within a short commute to Nusajaya Tech Park, SiLC, and the broader JS-SEZ catchment.

Also in Iskandar Puteri, Eco World Development Group Bhd’s Eco Botanic, and Eco Botanic 2 continue to attract mid- to upper-tier occupiers seeking spacious living environments, supported by strong retail ecosystems, and hybrid-work-friendly layouts.

Tropicana Corporation Bhd is also upping the ante in the lifestyle segment with its flagship Lido Waterfront project along the coastal corridor. Skypark Kepler, launched in July this year in partnership with Banyan Group, will introduce 1,596 serviced apartments, and16 retail lots, with completion slated for end-2029.

Selangor’s new live–work clusters are forming around its industrial backbone

Selangor remains the country’s most mature industrial-residential ecosystem, with talent grouping around Puchong, Cyberjaya, and the Dengkil–Nilai growth belt, all strategically tied to the state’s integrated circuit (IC) design push, and Malaysia Vision Valley (MVV) 2.0’s manufacturing expansion.

Residential demand is still strong in Subang Jaya, Puchong, Cyberjaya, and the southern Selangor belt (Kota Warisan, Bandar Enstek, Salak Tinggi) because of access to Kuala Lumpur International Airport (KLIA) Aeropolis, DHL’s mega hubs, major logistics operators, and the emerging digital infrastructure cluster.

The Puchong Financial Corporate Centre (PFCC) has become a surprising magnet for high-skill talent after the launch of the Selangor Semiconductor IC Design Park 1—now fully occupied with 14 companies, and more than 200 engineers. The surrounding residential market is benefitting from this fast, office-driven densification.

Just 15 minutes from PFCC sits Shorea Park by OSK Property Holdings Bhd, offering serviced apartments at an attractive price from RM250,000. For those in multi-generational households, S P Setia Bhd’s Legasi Villa, and Anggun Villa in Bandar Kinrara supply a rare option of premium landed homes in a mature address.

Meanwhile, Cyberjaya, as the pioneer Multimedia Super Corridor (MSC) city, is being re-energised by the launch of the IC Design Park 2, which also houses the Advanced Chip Testing Centre, and the Advanced Semiconductor Malaysia Academy (ASEM).

Cyberjaya’s extensive fibre backbone, power infrastructure, and designation as a tech hub make it a prime location, directly fuelling newer projects like ParkCity Botanika by award-winning developer, ParkCity Group. The 259-acre township is conceived as a “Township in the park”, incorporating 66 acres of parkland and ParkCity’s signature “complete neighbourhood” concept. The masterplan includes a mix of landed homes, high-rises, and affordable housing, with the overall development projected to comprise over 7,000 homes at full build-out.

Beyond the southern tech corridor, Selangor’s western belt is also emerging as a major industrial–residential cluster.

Bukit Raja, led by Sime Darby Property Bhd, continues to attract logistics operators, and advanced manufacturers moving into the Port Klang–Shah Alam axis, creating steady housing demand in nearby townships.

Further north, EcoWorld’s Eco Grandeur is shaping the Puncak Alam growth zone with its integrated business parks, which appeal to small and mid-sized enterprises (SMEs), and mid-tech firms looking for flexible expansion space. As these nodes mature, they collectively broaden Selangor’s talent catchment, offering more diverse residential options for engineers, warehouse specialists, and operations managers working across the state’s expanding industrial spine.

Penang mainland’s growth is rising around Batu Kawan’s concentration of high-skill talent

Penang’s industrial trajectory is pulling its residential market towards the mainland, with Batu Kawan emerging as the state’s most important live-work cluster.

Developers with long-term community strategies are moving in early.

SkyWorld Development Bhd’s upcoming projects under the Rumah Bakat MADANI programme mark one of the largest affordable housing initiatives in Malaysia, spanning 195 acres across Seberang Jaya (34.4 acres), and Batu Kawan (161.5 acres). The scheme is designed to retain high-skill talent, with prices between RM225,000 and RM420,000 under the SkyWorld Pearlmont, and SkyWorld Cassia brands.

Also in Bandar Cassia, Fajarbaru Builder Group Bhd is set to develop Medi-City, an integrated healthcare and wellness hub on over 200 acres offered by Penang Development Corporation (PDC), rein-forcing Batu Kawan’s shift into a broader economic zone beyond electrical and electronics (E&E). Nearby, Paramount

Corporation Bhd, EcoWorld, and Ideal Property Group continue shaping family-focused neighbourhoods with strong connectivity to the Penang bridge linking to the island.

At Penang island, residential demand anchored in Bayan Lepas, and the south-west district sees Ideal Property having a strong footing, with projects like Queens Waterfront, and the upcoming PIX 1 Residences serving talent working in the Free Industrial Zone and future light rail transit (LRT)-linked precincts.

Penang island, and Batu Kawan now function as a single, interlinked ecosystem, anchored by its advanced manufacturing base. As Penang doubles down on its Silicon Valley ambition, housing demand is shifting towards integrated, live-work communities built around talent density and infrastructure.

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