Malaysia emerges as strategic hub for resilient workspaces in South-East Asia

Malaysian Reserve

11-06-2025

MALAYSIA is increasingly recognised as a key beneficiary of the global real estate transformation, as multinational corporations seek to align their real estate portfolios with operational resilience, sustainability and future-ready workspaces.
As corporations globally confront economic volatility, geopolitical risk and the need to rapidly adapt to digital transformation, some 50% of global occupiers expect their footprint to grow in the next 3-5 years, representing over 104 million sq ft of new space.
Malaysia, with its maturing infrastructure, trilingual talent pool and expanding industrial corridors, is firmly on the radar, according to a new global report released by Knight Frank (M) Sdn Bhd capturing responses from nearly 300 corporate real estate (CRE) leaders managing over 650 million sq ft of space worldwide.
'Occupiers are cutting loose from legacy portfolios, but they're not abandoning space. 'They're moving to better space and into more locations as they regionalise their portfolios,' Knight Frank partner and global occupier research head Dr Lee Elliott said in a statement.
Locally, the statement noted that Knight Frank has seen increasing interest from multinationals looking to establish regional headquarters, high-spec industrial hubs and sustainable logistics solutions in Greater Kuala Lumpur, Johor and Penang.
It said the demand is particularly strong among firms focused on advanced manufacturing, technology and regional distribution.
Knight Frank group MD Keith Ooi said Malaysia offers the right mix of cost efficiency, political stability and market access that global occupiers are looking for today.
'But what truly sets us apart now is the growing quality of our industrial and office spaces — they're being designed with resilience, environmental, social, and governance (ESG)-readiness and long-term adaptability in mind,' he said in the same statement.
Knight Frank's research shows that the top priority for CRE leaders today is enhancing operational efficiency and resilience — cited by 38% of respondents — ranking above ESG compliance or innovation.
This reflects a flight to functionality, where occupiers prefer shorter lease terms, hybrid-ready layouts and location strategies built around risk diversification and talent access. — TMR
This article first appeared in The Malaysian Reserve weekly print edition