Understanding the Different Types of Industrial Property

1. Industrial Land  

Industrial land is categorized based on its suitability for different types of industrial activities. The classification of industrial land helps in determining the type of industries that can be established and their operational needs. The three main categories are: 

Light Industrial Land

Light industry involves activities with minimal environmental impact. This includes sectors like manufacturing soft drinks, textiles, and assembling electric motors and other electronics.  Light industrial lands typically have a minimal environmental footprint and are often situated close to residential areas—usually less than 100 meters away. These properties require fewer buffer zones and are well-suited for urban and suburban locations due to their low-impact operations. 

Medium Industrial Land

Medium industry encompasses operations with moderate environmental impacts. This category includes activities such as manufacturing furniture and fabrication of metal   products. Medium industrial lands usually require buffer zones ranging from 150 to 250 meters from residential areas to mitigate potential noise, emissions, and traffic impacts. These properties are often located on the outskirts of urban areas or in designated industrial zones. 

Heavy Industrial Land

Heavy industry involves operations with significant environmental impacts, such as oil refining, steel production, and large-scale chemical manufacturing. Heavy industrial lands require the largest buffer zones—often 500 meters or more—from residential areas due to their substantial emissions, noise, and waste generation. These properties are typically situated in more remote areas or specialized industrial parks to minimize their impact on surrounding communities. 

For comprehensive details on light, medium, and heavy industry development in Malaysia, explore our detailed article here. 

2. Industrial Parks 

Industrial parks are planned areas specifically designed to accommodate a variety of industrial activities. They provide several benefits, including: 

Comprehensive Infrastructure: Industrial parks are equipped with essential infrastructure like roads and drainage, utilities (water, electricity), and communications networks and sewerage, which supports smooth business operations.

Zoning and Planning: They are zoned to separate industrial activities from residential and commercial zones, reducing conflicts and enhancing operational efficiency.

Shared Amenities: Many Managed Industrial Parks offer additional amenities such as administrative offices, service facilities, and recreational areas, fostering a supportive business environment.

Industrial parks are ideal for companies looking for a community of like-minded businesses and access to shared resources. 

3. Factories

Factories are specialized industrial properties dedicated to manufacturing goods. They vary in size and complexity, depending on the production process. Key aspects of factory properties include: 

Production Facilities: Factories are equipped with machinery and equipment needed for manufacturing, assembly, and production.

Storage Areas: These properties include spaces for raw materials and finished products, essential for efficient production and distribution. 

Quality Control: Factories often have areas dedicated to quality assurance and testing, ensuring that products meet industry standards. 

Factories can be located in various industrial zones depending on the scale of their operations and production needs. 

4. Warehouses

Warehouses are large buildings designed for storing goods and materials. They are crucial for the supply chain, supporting the movement and storage of products. Features of warehouse properties include: 

Ample Storage Space: Warehouses maximize storage capacity with high ceilings, high floor load and large floor areas to accommodate various goods and materials.

Logistical Facilities: Equipped with loading docks, racking systems, and inventory management tools, warehouses streamline storage and distribution processes. 

Accessibility: Located near transportation hubs like ports or highways, warehouses facilitate easy and efficient distribution of goods.