Sabah's growth reshapes Kota Kinabalu industrial property market

KUALA LUMPUR: Sabah's accelerating economic growth and infrastructure build-out are reshaping the business landscape around Kota Kinabalu, creating demand for industrial premises that can support manufacturing, logistics, distribution and increasingly diverse commercial activities.

The shift is opening opportunities for developers to move beyond conventional industrial formats and offer more flexible properties that can accommodate multiple business functions, according to Golden Land Bhd (GLB).

The property developer is expanding its Kota Kinabalu portfolio into the light industrial segment with Putatan Gateway Socio-Industry, a 5.42-hectare development comprising 43 two-storey light industrial factories in Putatan.

GLB chief executive officer Stewart Yap said Putatan was emerging as a strategic southern growth corridor, supported by improving highway connectivity, its proximity to Kota Kinabalu International Airport (KKIA) and the continued expansion of industrial and commercial activity in greater Kota Kinabalu.

"Putatan Gateway is positioned to capture this transition as the area continues to evolve into a more established business and industrial destination. We see an opportunity to create a new generation of industrial premises that responds to both the operational and corporate needs of modern businesses," he said in a statement.

The development comes as Sabah's economy gathers pace. Data from the Department of Statistics Malaysia showed the state's economy expanded 5.1 per cent in 2025 to RM88.8 billion, compared with 1.2 per cent growth in 2024.

The construction sector was the strongest performer, expanding 28.3 per cent, while manufacturing grew 5 per cent and services 4.5 per cent.

Kota Kinabalu is also set to benefit from major infrastructure investment, including the upgrading of KKIA's annual passenger capacity from nine million to 12 million, improvements to Sabah's road network and the expansion of Sepanggar Bay Container Port from 500,000 twenty-foot equivalent units to 1.25 million TEUs.

The investments are expected to strengthen Kota Kinabalu's position as Sabah's commercial, transportation and logistics hub, potentially supporting demand for industrial space serving trade, distribution, manufacturing and logistics businesses.

Putatan Gateway is GLB's second project launch in Kota Kinabalu, following The Playground @ Kota Kinabalu commercial suites launched in June 2026, and represents the group's entry into the city's light industrial property segment.

Located along Kota Kinabalu's southern industrial corridor, the development is about 1km from the Putatan interchange of the Pan Borneo Highway, 5km from KKIA and 10km from Kota Kinabalu city centre.

The project comprises 43 units across two phases, with built-up areas of about 4,650 sq ft and land sizes ranging from 8,590 sq ft to 15,056 sq ft. Phase One consists of 18 semi-detached factories, while Phase Two comprises 22 semi-detached and three detached units.

Designed for businesses requiring greater operational flexibility, the premises can accommodate manufacturing, warehousing, showroom and office functions under one roof. Each unit features a nine-metre warehouse ceiling and floor loading of 10 kN/m² for warehouse areas and 5 kN/m² for showrooms, alongside six-metre double-volume showroom spaces.

The units are also mezzanine-ready, allowing potential additional space of about 1,020 sq ft. Other features include modular and removable front wall panels, side entrances, roller shutters, dedicated parking, three-phase electricity, skylights and large windows for greater natural lighting.

Yap said businesses in Kota Kinabalu increasingly needed premises capable of serving multiple purposes as their operations evolved.

The development is targeting distributors, logistics operators, automotive businesses, building-material and hardware suppliers, furniture and interior companies, electrical and engineering firms, e-commerce fulfilment operators, wholesalers and SMEs.

It will also accommodate socio-industrial uses such as cafes, fitness studios, wellness and recreational businesses, broadening the potential tenant and owner-occupier base beyond traditional industrial activities.

For GLB, the development reflects the changing requirements of businesses in Kota Kinabalu while giving companies currently operating from rented premises an opportunity to own their premises and providing investors exposure to the wider Kota Kinabalu-KKIA industrial catchment.