KUALA LUMPUR: 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.
This global trend is spotlighted in Knight Frank’s newly released (Y)OUR SPACE 2025 global report, which captures responses from nearly 300 corporate real estate (CRE) leaders managing over 650 million sq ft of space worldwide.
As corporates globally confront economic volatility, geopolitical risk, and the need to rapidly adapt to digital transformation, 50% of worldwide 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.
“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,” said Knight Frank partner and global occupier research head Dr Lee Elliott.
Locally, Knight Frank Malaysia has seen increasing interest from multinationals looking to establish regional HQs, high-spec industrial hubs, and sustainable logistics solutions in Greater Kuala Lumpur, Johor, and Penang. The demand is particularly strong among firms focused on advanced manufacturing, technology, and regional distribution.
Knight Frank Malaysia Group managing director Keith Ooi remarked “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, ESG-readiness, and long-term adaptability in mind.”
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.
Knight Frank Malaysia office strategy & solutions senior executive director Teh Young Khean said “Malaysia’s value proposition goes beyond location and affordability. Our strong multilingual workforce, growing tech talent base, and increasing ESG focus make us one of the most versatile markets for regional operations. The flight to quality is real – and Malaysia is ready.”
Meanwhile, 63% of worldwide respondents now prioritise purposeful, adaptable amenities over prestige-focused features – underscoring a shift towards practical design and measurable performance. This aligns well with Malaysia’s newer inventory of commercial developments, which are increasingly built to green and wellness-certified standards.
With rising expectations placed on CRE teams to enable transformation while navigating constrained conditions, the opportunity for Malaysia lies in delivering experience-led, cost-efficient, and strategically located workspaces that meet both global and local performance benchmarks.
