Beyond its celebrated cultural heritage, Penang is emerging as Malaysia’s most dynamic hub for industrial and logistics activity. Strategically located along the Straits of Malacca and seamlessly connected to Malaysia’s national highway network, Penang offers direct port access via Penang Port and lies close to the Bayan Lepas International Airport. These connections reduce friction in both export and import flows, attracting supply chain operators, contract manufacturers, and multinational logistics companies. Recently, the “China Plus One” strategy adopted by global corporates has significantly benefitted Penang, as some companies diversify their manufacturing and sourcing operations beyond China to include at least one other country. This is especially the case in Electrical & Electronics (E&E), medical instruments, and precision engineering sectors. 

Penang’s industrial ecosystem has matured rapidly since the 1970s. The Penang Development Corporation (PDC) drives the planning and management of integrated industrial parks with readily available infrastructure. These industrial developments have become a magnet for high-tech investments, attracting global names. The park’s modern infrastructure and layout, focused on smart industry standards, set a benchmark for industrial development in Malaysia. The growing shift in industrial supply chains has intensified logistics requirements in Penang, driving demand for modern warehousing and distribution hubs. This is reflected in the substantial rental growth of the past few years, surpassing that of Kuala Lumpur.

Figure 1 – Penang industrial and logistics average prime rental trend