Overview
Shah Alam is the benchmark for industrial property in Greater Kuala Lumpur. As Selangor's state capital and the home of the Hicom industrial complex, it offers a level of infrastructure maturity, planning, and connectivity that newer industrial areas aspire to. The city's industrial zones span multiple sections — from the heavy industrial estates in Section 15 and 23 to the lighter industrial parks in Seksyen 33 and the technology-oriented zones near i-City.
What distinguishes Shah Alam is its balance of factors: wide, well-maintained roads; proximity to the Federal Highway and multiple expressways; a large local workforce; and a concentration of supporting services from freight companies to industrial equipment suppliers. This makes it particularly suitable for established businesses, MNC operations, and companies that need reliable, no-surprise industrial space.
The trade-off is price. Shah Alam commands premium rental rates and land values — the highest in Greater KL's industrial market. Vacancy rates are lower, and competition for well-located units is steady.
Key Industries
Shah Alam's industrial diversity reflects its maturity:
- Automotive & Assembly — The Hicom-Glenmarie and Section 15 zones host automotive assembly and component manufacturing, including Proton's historical presence and a cluster of tier-1 and tier-2 suppliers.
- FMCG & Consumer Goods — Several major FMCG companies operate distribution centres and regional warehouses in Shah Alam, drawn by the central location and highway access.
- Pharmaceuticals & Healthcare — The area is home to pharmaceutical manufacturing and medical device companies, supported by clean room facilities and compliance-ready infrastructure.
- Technology & Electronics — The i-City and Glenmarie corridors attract technology companies, data centres, and electronics assembly operations.
- Engineering & Precision Manufacturing — Metal fabrication, CNC machining, and precision engineering workshops cluster in the Seksyen 23 and 26 industrial zones.
Infrastructure & Connectivity
- Federal Highway — Direct east-west corridor connecting Shah Alam to KL city centre (approximately 25 minutes) and Klang/Port Klang (approximately 20 minutes).
- Expressway Network — NKVE, LKSA, KESAS, and Guthrie Corridor connect Shah Alam to virtually every corner of the Klang Valley. Multiple interchange access points reduce congestion.
- LRT/BRT — Shah Alam is served by the LRT Kelana Jaya extension and the forthcoming Shah Alam BRT line, improving workforce access.
- Power & Utilities — Excellent. Major TNB substations, 3-phase industrial power widely available. Some areas have dual power feed for critical operations.
- Broadband — Full fibre coverage across all industrial zones. Multiple provider options including enterprise-grade connectivity.
- Workforce — Access to a large, skilled workforce. Proximity to universities (UiTM Shah Alam, MSU) and training institutions provides a pipeline of technical talent.
Investment Highlights
- Rental rates: RM5–12 per sqft. Standard factory/warehouse units from RM5–7; modern logistics and specification-grade facilities RM8–12. Prime locations like Hicom-Glenmarie command top rates.
- Land prices: RM150–350 per sqft for industrial-zoned land. Premium for freehold, corner lots, and main road frontage.
- Availability: Limited to moderate. Well-located units are quickly absorbed. Longer lead times for specific requirements.
- Vacancy rate: Among the lowest in Greater KL. Quality industrial space in good locations rarely sits empty for more than 2–3 months.
- Lease terms: 3–5 years is standard. Landlords in prime areas often require longer commitments. Rent escalation clauses are common.
Development Potential
Shah Alam's industrial market is mature but not stagnant. Several trends are shaping its near-term trajectory:
Redevelopment of aging estates. Some Section 15 and 23 factories — built in the 1980s and 1990s — are being redeveloped into modern industrial units with better specifications. This is gradually increasing the supply of higher-grade space, though at premium pricing.
i-City effect. The i-City mixed-use development has brought attention and amenity upgrades to the eastern Shah Alam corridor, making adjacent industrial areas more attractive for businesses that want their operations close to modern amenities and talent.
Logistics modernisation. The rise of e-commerce has driven demand for last-mile distribution centres, and Shah Alam's central location makes it ideal. Several older warehouses have been retrofitted for e-commerce fulfilment operations.
Capacity constraints. Available industrial land in Shah Alam is scarce. Most future supply will come from redevelopment rather than greenfield projects. This constrains new supply and supports rental growth.
For businesses that can afford the premium, Shah Alam offers the most reliable industrial environment in Greater KL. The infrastructure, connectivity, workforce access, and supporting ecosystem make it a low-risk choice for operations where location quality matters more than cost savings.