property market overview 2018



    Malaysia’s economy recorded sustained growth of 4.4% during 3Q2018 (2Q2018:4.5%), mainly driven by expansion in domestic demand and higher private investment. The country’s gross domestic product (GDP) for the whole year of 2018 is expected to be in the region of 4.8%.


    The Business Conditions Index (BCI) slipped 7.5 points to 108.8 points in 3Q2018, from 116.3 points registered in the second quarter. This suggests that business trends continued to expand albeit at slower pace.


    The labour market conditions continued to remain favourable with unemployment rate at 3.4% in 3Q2018 (2Q2018: 3.3%).


    Bank Negara Malaysia (BNM) kept the Overnight Policy Rate (OPR) unchanged at 3.25% to remain accommodative and supportive of current economic activity.


    The country’s total trade for the period from January to October 2018 was valued at RM1.56 trillion. For the first time, exports breached the RM90 billion mark in October to hit a record high of RM96.38 billion with China remaining as the top export destination. On a y-o-y basis, exports and imports grew 7.5% and 5.4% to RM829.89 billion and RM727.88 billion respectively.


    Malaysia’s industrial production index (IPI) was 4.2% higher year-on-year (y-o-y) in October 2018, supported mainly by higher output in the manufacturing and electricity sectors.


    The Nikkei Malaysia Manufacturing Purchasing Managers Index (PMI), a measure of business conditions in the country’s manufacturing sector, hit 46.8 in December, down from 48.2 in November, the lowest level since July 2012 as a result of general market slowdown due to lower orders and higher operating expenses. Readings above 50 indicate an expansion while those below 50 indicate contraction.

  • Industrial Sector Overview

    The services and manufacturing sectors have consistently remained as the key engine to the country’s growth. From 2016 to September 2018, contribution from the manufacturing sector has been fairly consistent at circa 23.0% of the country’s total GDP (at current prices).


    Malaysia: Manufacturing Sector - Percentage Contribution to Total GDP (at constant 2010 prices), 2016 to Jan-Sept 2018


    The manufacturing sector continues to be an important part of Malaysia’s industrialisation efforts, attracting both local and foreign investments. From January to September of 2018, the sector saw the approval of 468 projects with total investment of RM59,070.4 million (circa 42.4% of the country’s total investments) and the creation of some 41,033 job opportunities.


    Foreign investments formed the bulk of total investments with about 82.6% share (or RM48,764.4 million) with the remaining RM10,306.0 million or 17.4% coming from domestic investments. Some 59.8% of the foreign investments in the manufacturing sector were from Asian countries such as China, Indonesia, Republic of Korea and Japan whilst investments from the Netherlands, the United States and British Virgin Islands collectively made up circa 29.0% share.






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    Title Text

    A sentence or two describing this project.

    Title Text

    A sentence or two describing this project.

  • Manufacturing Sector: Investment Overview, 2016 to Jan-Sept 2018

    Three industries accounted for about 62.8% of the total approved investments, with petroleum products (including petrochemicals) topping the list with investments of RM20,413.5 million, followed by electrical and electronic products (RM10,652.3 million) and basic metal products (RM6,056.4 million).


    By state, Johor topped the list with RM26,526.6 million or 44.9% share of total investments in the manufacturing sector, followed by Pahang with RM8,975.5 million (15.2%), Selangor (RM8,246.9 million or 14.0%), Terengganu (RM4,283.5 million or 7.3%) and Penang (RM3,825.2 million or 6.5%).

  • Industrial Market - Pahang

    Statistics from Malaysia Investment Development Authority (MIDA) showed that Pahang approved 11 manufacturing projects with high capital investment of RM8,975.5 million in the first three quarters of 2018. In contrast, the 19 manufacturing projects approved in 2017 only have total capital investment of RM2,962.0 million.



    • BASF Petronas Chemicals Sdn Bhd, a subsidiary of Petronas Chemical Group Bhd (PetChem), has recently concluded the start-up of a new plant in Gebeng, Kuantan. The plant, the first of its kind in South-East Asia, has successfully produced its first batch of highly reactive polyisobutene (HR-PIB). It has a total annual capacity of 50,000 metric tonnes.
    • Strategic Swiss Partners (SSP), a Switzerland company, aims to build a massive integrated ethylene and polymer production plant in Gebeng, Pahang. The company has already received the necessary approvals and has signed memorandums of understanding (MoU) with contract partners. The plant, to be built on about 200 acres of land in the Gebeng Industrial Estate, will include an integrated steam cracker with downstream facilities that will produce polyethylene, polypropylene, butadiene, benzene and other products.

  • Industrial Market - Pahang: Overview

    Pahang recorded a total of 168 transactions in the industrial sub-sector in 2017 with corresponding value of RM79.87 million. When compared to 2016, there was a 6.7% decline in the volume of transaction and a significant contraction of 27.0% in transacted value.



    From January to September 2018, 128 industrial properties valued at RM298.65 million changed hands in the state. Industrial properties categorised under ‘others’ recorded 78 transactions (60.9% share of transacted volume) with corresponding value of RM249.15 million (83.4% share).

  • Industrial Market - Pahang

    Supply: Existing and Future

    The cumulative existing supply of industrial properties in Pahang stood at 3,541 units as of 3Q2018. There was an increase of 51 units from 2017, made up of 40 terraced units, eight detached units and three industrial complexes respectively.



    From January to September 2018, 128 industrial properties valued at RM298.65 million changed hands in the state. Industrial properties categorised under ‘others’ recorded 78 transactions (60.9% share of transacted volume) with corresponding value of RM249.15 million (83.4% share).

    The terraced category continues to dominate the existing supply with circa 64.5% market share, followed by the detached and semi-detached categories with 22.0% and 11.5% share respectively. The bulk of terraced factories in Pahang are located in Kuantan District (1,182 units). The incoming supply is made up of 79 units or 89.8% share in the terraced category. There are 41 units coming on-stream from Rompin District.



    Under planning are a total 243 industrial units, made up of 79.0% in the terraced category, followed by the detached and semi-detached categories with 12.8% and 7.4% share respectively. The planned supply will come from Kuantan District (48.1%), Jerantut District (19.3%) and Bera District (12.3%).


    Rental Values

    The majority of industrial premises in Pahang are located in Kuantan district, and they command asking rentals of RM0.40 per sq ft to RM0.80 per sq ft per month.