Malaysia’s industrial property sector is poised for a major transformation as Sime Darby Property teams up with SDG to redevelop 2,000 acres of agricultural land into a cutting-edge logistics and industrial hub on Carey Island. This strategic partnership capitalizes on the island’s prime location near Port Klang and upcoming infrastructure projects, positioning it as a future gateway for global trade.
The development’s success hinges on its connectivity advantages, with direct access to existing ports and major expressways. Analysts highlight the project’s potential to attract international players, given its scalability and proximity to Northport, Westport, and a planned MYR28 billion mega-port. A Special Purpose Vehicle will oversee the venture, with leadership nominations expected from Permodalan Nasional Berhad, a key stakeholder in both companies.
Beyond logistics, the project aims to balance industrial expansion with sustainable land use, preserving existing palm oil operations while fostering economic growth. Sime Darby Property’s expanding portfolio now includes seven industrial parks nationwide, reinforcing its dominance in Malaysia’s industrial real estate market. Locations such as Bandar Bukit Raja, Elmina Business Park, and Serenia Business Park underscore the company’s strategic footprint.
While the long-term outlook appears promising, Maybank IB Research maintains a cautious stance, keeping its “HOLD” rating and MYR1.50 target price for Sime Darby Property pending further project details. The firm awaits clarity on development timelines, GDV, and financial structuring before revising its forecasts. This venture could redefine Malaysia’s industrial landscape, but its full impact remains to be seen as plans unfold.