3,455ha land around KLIA await an influx of new investment

KUALA LUMPUR: A 3,455-hectare area surrounding Kuala Lumpur International Airport (KLIA) has the potential to become a major investment destination for the aviation, logistics, hospitality and data centre sectors over the next decade.

Juwai IQI Group co-founder and group chief executive officer Kashif Ansari said the area, known as KLIA Aeropolis, is larger than Cyberjaya and offers advantages in terms of land availability, its strategic location near the airport and the potential development of sustainable energy infrastructure.

He said development in the area was expected to focus more on commercial and industrial activities rather than large-scale residential projects, given the operational requirements of aviation activities and airport safety zones.

"Over the next 10 years, a significant portion of investments is expected to be concentrated in aviation-related industries, including cargo operators and aircraft maintenance companies," he said.

He said the decision by Chinese companies to use KLIA as a cargo gateway to the Asean region could also support the growth of the logistics sector in the area.

According to him, Alibaba's logistics subsidiary already operates a 24-hectare order fulfilment hub in the area, reflecting Aeropolis' potential as a base for international logistics companies.

Kashif said the development of new hotels near KLIA could also gain momentum following a surge in accommodation demand during the Formula One (F1) Bahrain Grand Prix in Malaysia, when hotel room rates were reportedly up to three times higher over the race weekend.

He added that the area could attract data centre investments due to its extensive land availability and the development of a solar park scheduled to begin operations next year.

"The combination of extensive land availability and the potential to generate sustainable energy can meet two key requirements for data centres, namely development space and electricity supply," he said.

He said the successful hosting of the Grand Prix could also revive discussions on the possibility of bringing F1 racing back to Malaysia through a multi-year hosting commitment.

Kashif said the development of KLIA Aeropolis could contribute to national economic growth by establishing business clusters spanning aerospace, aviation, logistics, advanced manufacturing and solar energy.

He said a PwC analysis estimated that KLIA Aeropolis could contribute RM30 billion to Malaysia's gross domestic product and create 56,000 jobs over 15 years.

According to him, the development plan for the area, managed through a subsidiary of Malaysia Airports Holdings Bhd under a long-term lease from the government, focuses on developing business clusters, including the aerospace industry and cargo handling.

Kashif said although the area could accommodate about 48,000 homes if developed at the density typical of established townships in Sepang, he believed large-scale residential development would not be the most suitable option due to aircraft noise and airport safety zones.

Instead, he said the growth of business activities in Aeropolis was expected to generate spillover benefits for nearby residential areas such as Salak Tinggi and Dengkil, which are popular residential choices for workers in KLIA, Putrajaya and Cyberjaya.

"The median house price in Sepang district was RM577,500 for the 12 months ended June 2026, while terraced houses in Salak Tinggi recorded a median price of RM434,000," he said.