As factories, logistics hubs and data centres multiply, developers and occupiers are shifting towards green-certified facilities as part of their long-term competitiveness strategy.
From compliance to competition
According to the Construction Industry Development Board (CIDB), certification frameworks such as the Green Real Estate (GreenRE), Green Building Index (GBI), Leadership in Energy and Environmental Design (LEED) guide developments towards resource efficiency, reduced environmental impact and healthier workplaces.
These standards validate a developer’s commitment to responsible construction while improving energy savings, lowering operational costs, and enhancing marketability.
GreenRE have certified over 800 projects spanning over 400 million sq ft as of August 2025. By end-2023, the Malaysian Green Technology and Climate Change Corporation (MGTC) reported over 671 projects certified under GBI, spanning nearly 300 million sq ft.
According to PEPS Ventures Learning Resources, Malaysia’s green building market is growing at an estimated 14.3% annually, with the green materials segment projected to expand from RM280 billion in 2021 to RM520 billion by 2027. The firm added that green buildings, which typically cost about 2% more to construct, deliver 14% to 19% operational savings and higher resale and rental premiums.
The shift marks a broader evolution from compliance-driven development to a race for operational excellence and environmental, social, and governance (ESG) alignment.
In the industrial segment, the certification wave has accelerated rapidly. GreenRE executive director Ashwin Thurairajah says the organisation has certified 70 industrial projects and 29 industrial parks, covering 35 million sq ft of built-up area and 33,000 acres, respectively.
“There are currently another 30 industrial developments registered, with more than 100 showing interest in certification,” he says.
He adds that growth within this segment has outpaced other asset classes, noting a 45% year-on-year increase for industrial projects since 2023 compared to 30% for commercial buildings, while industrial parks under its township category have surged 50% annually.
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