Sime Darby Property ups Klang industrial play with ESG-led Bandar Bukit Raja Business Park

KLANG (May 15): Sime Darby Property is strengthening its industrial presence in Klang through the expansion of Bandar Bukit Raja Business Park, an ESG-led industrial township.

Bandar Bukit Raja Business Park township head Amir Baharain said the Bandar Bukit Raja master plan spans about 5,240 acres and comprises residential, commercial and industrial components, with industrial developments spread across Bandar Bukit Raja 1, Bandar Bukit Raja 2, Bandar Bukit Raja 3 and the newly launched BBR Business Park.

“We are creating a township not just for industrial use, but also for workers. Businesses can set up operations here while employees can live within the township as well,” he said during the Bandar Bukit Raja Industrial Talk at Sime Darby Bandar Bukit Raja Sales Gallery. The event was organised by EdgeProp with Sime Darby Property.

Amir said the township is connected via major highways, rail infrastructure and airports, including the West Coast Expressway, the East Coast Rail Link, Subang Airport and KLIA.

He added that BBR Business Park — Sime Darby Property's latest industrial development — spans about 988 acres and is designed as an ESG-led industrial business park for modern industry.

“BBR Business Park is the first township to receive a Platinum rating by GreenRE. We believe we are moving in the right direction,” he said.

According to Amir, the development offers four business models comprising industrial lots, ready-built factories, build-to-suit and lease, and build-to-suit and sell.

He also highlighted the managed industrial park concept which focuses on security, ESG compliance and infrastructure management.

“BBR Business Park is a managed industrial park with gated-and-guarded precincts. Security is prioritised, and the area will be maintained at a higher standard than what local authorities currently provide,” he said.

Flood mitigation another key focus in the township's planning

"During the major 2021 floods, the flood level at the BBR Business Park site was recorded at 4.1 metres. We have designed road levels at 4.8 metres and platform levels at 5.1 metres," he said, adding that this allows businesses to continue operating even during flooding.

"Business continuity is very important to us," he noted.

Amir said Sime Darby Property is also launching a new semi-detached factory series within the development in the third quarter of this year, offering 52 units of approximately 5,000 sq ft each. The units will come with 80 ft-wide internal roads, external parking bays, 200-amp power capacity, 10 kilonewtons floor loading and 8m ceiling clearance.

He added that Bandar Bukit Raja 2 previously recorded strong investor demand, with 57 built-to-suit lots taken up in a single day, securing RM700.5 million in investments. Separately, in 2022, Sime Darby Property announced a US$250 million joint venture industrial development fund with LOGOS SE Asia for logistics facilities within the township.

On future township plans, Amir said Bandar Bukit Raja would incorporate residential, commercial and lifestyle components alongside industrial developments, including large parks, surau, retail spaces, purpose-built workers' accommodation and a centre of excellence aimed at attracting SME startups and innovative businesses.

"We want people to feel that this is not just a place to work, but also somewhere they can relax, unwind and enjoy work-life balance," he said.

Klang’s rise as Malaysia’s industrial and logistics backbone

EdgeProp head of research and consultancy Kee Hock Im said Klang has evolved from a port economy into one of Southeast Asia’s key integrated industrial and logistics hubs.

"Port Klang today is one of the top ports in the world," he said, noting that the port recorded its highest-ever throughput in 2025 at 15.14 million TEUs — placing it among the top 10 busiest ports globally and second in Southeast Asia after Singapore.

"Port Klang is connected to over 500 global ports and is intertwined with the global supply chain, especially between the two economic behemoths of the US and China," he said.

Kee said Klang district remained the top contributor to industrial transactions within Klang Valley in 2025, accounting for nearly 30% of all industrial transactions in the region. Despite Johor's recent data centre boom, Klang Valley recorded the highest industrial transaction value in Malaysia — RM15.7 billion in 2025, with a compound annual growth rate (CAGR) of 11.4% between 2021 and 2025.

Kee noted that managed industrial parks are becoming increasingly important among multinational corporations (MNCs) and institutional occupiers, with green-certified industrial assets achieving approximately 30% faster occupancy rates compared to conventional facilities.

"ESG goes beyond energy saving — it also covers social and governance aspects such as worker safety, flood mitigation and professional infrastructure management," he said.

He added that future infrastructure projects including the East Coast Rail Link (ECRL), Pulau Carey Port Development, WCE and LRT3 will further strengthen Klang's industrial ecosystem. Of the ECRL, he noted that 70% of its revenue is expected to be derived from freight cargo and 30% passengers, underscoring how critical the rail link is in connecting the East Coast all the way to Port Klang.

Long-term retail growth driven by connectivity and ecosystem planning

Meanwhile, MyNews Retail Sdn Bhd chief business development officer Ong Li Syin said retail expansion today is increasingly driven by long-term sustainability and ecosystem planning.

“Growth is actually about relevance. If the brand is no longer relevant, I don’t think growth is sustainable,” she said at a fireside chat on "Retail expansion strategies".

Ong said MyNews relies heavily on demographic studies, development data and long-term township planning when assessing new locations, including subscribing to EdgeProp's EPIQ platform to gauge demographic profiles and understand development characteristics and future pipeline.

She said integrated township planning and connectivity are among the most critical factors for retailers.

"With the building of integrated developments — residential precincts, commercial precincts and so on — this creates more population and catchment within the township itself. That's where retailers like us are able to scale in the long term," she said.

Ong said MyNews typically looks at tenancy periods of between 10 and 15 years given the long-term capital investment involved in each outlet.

“Scalability is not just about speed. I want to reiterate that it is much more about how we will be able to sustain in the long term within the location itself,” she said.

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