This article first appeared in City & Country, The Edge Malaysia Weekly on August 31, 2026 - September 6, 2026

Given the industrial shift towards green operations and more resilient supply chains and infrastructure, S P Setia Bhd (KL:SPSETIA) is likewise positioning its eco-industrial business model for growth.

The developer has positioned its business model on four strategies: a focus on light and medium industry; value creation by selling infrastructure-ready plots; recycling capital through built-to-suit models; and holding industrial assets in its upcoming real estate investment trust (REIT) to generate long-term, recurring income.

This industrial focus is being placed on two major projects in Malaysia — Setia Fontaines Industrial Park in Kepala Batas, Penang, and the Setia Alaman Industrial Park in Selangor — while the group evaluates Vietnam for industrial opportunities.

S P Setia president and CEO Datuk Zaini Yusoff sees industrial growth as an important platform for sustaining economic growth, investment creation and contributing to job opportunities. “At S P Setia, we see eco-industrial parks as future-ready economic ecosystems that bring together connectivity, sustainability, infrastructure-readiness, access to talent and the flexibility for businesses to scale with confidence.

“Our projects in Penang and Selangor reflect our confidence in the long-term potential of well-planned industrial parks when integrated with thriving townships.

“In Vietnam, we are at an early stage of discussions and due diligence with our partner and are assessing the opportunity carefully in line with S P Setia’s disciplined approach to growth.”

The developer is confident about bringing its more than 30 years of master-planning, placemaking and sustainable township development to its industrial environments.

“They are not only operationally ready today but also adaptable to the needs of tomorrow. By supporting businesses with the right infrastructure, environment and community ecosystem, these parks can become catalysts for township value appreciation, recurring income opportunities and future REIT potential,” says Zaini.

S P Setia’s latest industrial milestone came on June 20, 2026, with the groundbreaking for the 509-acre Setia Fontaines Industrial Park in Bertam, Kepala Batas.

Located within the 1,691-acre freehold Setia Fontaines township, the industrial park marks an expansion of its first industrial footprint into Penang. Its location provides strong connectivity to Penang Island, Bukit Mertajam, Seberang Jaya and Kulim, with direct access to the North-South Expressway.

Offering light industrial, medium industrial and commercial lots for a broad spectrum of occupiers, spanning small and medium enterprises (SMEs) to multinational corporations (MNCs), the industrial park is envisioned as a next-generation economic hub supported by world-class infrastructure for advanced manufacturing, digital infrastructure and high-technology industries in the Northern Region.

A unique selling point of the park is its ready supply of green electricity — a product of S P Setia’s collaboration with the Northern Corridor Implementation Authority. The collaboration will allow the park and its tenants to draw green power from the national grid, sourced from regional renewable energy developers.

S P Setia sees this access to low-carbon energy solutions as an increasingly vital prerequisite for global supply chain requirements, with MNCs, export-oriented companies and environmental, social and governance (ESG)-compliant manufacturers prioritising sustainable compliance.

Through this collaboration, the Setia Fontaines Industrial Park supports Malaysia’s low-carbon ambitions while enhancing Penang’s investor value.

Beyond the industrial component, the township is expected to reach a population of 30,000 by 2041, with 640 affordable homes to be delivered with the Penang State Housing Board by 2029.

Setia Alaman Industrial Park in the Klang Valley is another industrial milestone for Setia. The 399-acre park is located in the 4,000-acre flagship Setia Alam township, established 22 years ago. It will also benefit from immediate access to the township’s mature residential and commercial hub, available workforce and amenities.

As at May 31, 2026, the take-up rate was 85% for the industrial land plots and 90% for the commercial shoplots. This demand reinforces the park’s appeal as a practical, infrastructure-ready and well-connected industrial address.

Buyers include logistics and warehouse players, an international cold chain facility, manufacturers, local SMEs and other industrial operators.

According to S P Setia, location remains a key draw for investors and tenants, bolstered by the park’s established connectivity, proximity to airports and ports, labour and lifestyle infrastructure, solar power generation, rainwater harvesting, sustainable materials and construction practices.

Key linkages include Northport and Westport in Port Klang, Subang Skypark Airport, Kuala Lumpur International Airport (KLIA) and the upcoming East Coast Rail Link (ECRL) Kapar station. Its accessibility covers a network of major highways, including the New Klang Valley Expressway (NKVE), West Coast Expressway (WCE), Shapadu Highway and Damansara-Shah Alam Elevated Expressway (DASH).

Since 2007, S P Setia has expanded its residential township model in Vietnam through projects such as EcoLakes and EcoXuan, and has seen strong sales at Setia Edenia, located in the EcoXuan township.

The group’s presence is driven by Vietnam’s population of nearly 100 million, rapid urbanisation — expected to surpass 50% by 2030 — and migration to major cities.

The administrative expansion of Ho Chi Minh City (HCMC), which included the merger of provinces such as Binh Duong and Ba Ria-Vung Tau from July 2025, has strengthened the case for more integrated regional planning. Ongoing investment in highways, metro lines and the planned North-South high-speed rail network is expected to improve accessibility over time.

Against this backdrop, S P Setia is exploring opportunities to apply its industrial development experience in Vietnam. Any involvement remains at a preliminary stage and is subject to feasibility assessments and relevant approvals.

On May 7, 2026, the group entered into a strategic cooperation agreement with Becamex IDC (Investment and Industrial Development Corp), a state-owned multidisciplinary corporation and industrial infrastructure developer in Vietnam and a partner of S P Setia for more than 19 years, to jointly explore industrial development opportunities in the Bau Bang area, in the growth corridor north of HCMC.

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