The client is a Government-Linked Company in Sothern Malaysia, with its primary business being in property development and asset management. The client has requested that we assess the potential of two sites with sizes around 110 acres to 150 acres in Bukit Gambir, Johor, for the establishment of an industrial park.
This study is delivered by a multidisciplinary consultant team consisting of an architect, town planner, business consultant, engineers and traffic consultant. As part of the study, we were tasked with conducting a detailed market study, economic strategy and financial feasibility analysis for the project.
Full Story
Both of the potential sites are strategically located in the Tangkak district, Johor, which lies close to the neighboring state of Melaka. It is particularly close to the town of Jasin, and is about a half an hour drive from the city centre of Melaka.
Tangkak is a rich source of agricultural raw materials and produced about 22% of the total agricultural crops in Johor in 2019. Tangkak district is the main agricultural production zone in Johor, being also the largest fruit producer and second largest vegetable producer in Johor.
The Johor State Government aspires to position the state as the nation’s main food production hub to support it in resolving domestic food security challenges. Recently the state government has also been trying to turn the state into a premier high-tech agrofood and processing hub. The proposed Johor State government also has set a target to reduce carbon emissions by 50% by 2025.
We were commissioned by the client to develop a feasibility study and masterplan based on the strengths of site locations and the stage governments aspirations.
Key Outcomes
The team began with a detailed site assessment to identify the economic activities of the project sites. This assessment provided a comprehensive analysis that showed the critical challenges faced and some possible areas for improvement, as well as several business opportunities for property developments.
The team conducted an industry value chain analysis on the project sites by mapping the value chain and ecosystem with the proximity of the study area, indicating they key industry business activities along upstream, midstream and downstream, as well as the key industry players. The industry value chain analysis helps to identify the key challenges faced by industry players as well as possible value leakages. This was followed by the conducting of a SWOT analysis on the study area to ascertain the local advantages in the aspects of geographical location, local resources, connectivity, availability of infrastructure, talents and other key parameters to be determined.
The team subsequently carried out an international benchmarking exercise to establish the best practices of industrial parks around the world. Several key parameters were identified for the benchmarking exercises to ensure comparability including the infrastructure provided inside the industrial park, fiscal and non-fiscal support by the government, socio-economic impacts brought into the region and so on. The team then conducted a detailed comparative analysis to identify key the commonalities and key success factors in these industrial parks.
The team identified the “Promoted Industries” which held a higher likelihood of success for the sites by evaluating both the internal and external driving factors. The consultant team then proposed the development components and possible plot size within the industrial park, including a centralised Agro-Food Processing Hub, Centralised Collection, Processing and Packaging Centre (CPPC), Knowledge and Training Centers, Halal Certification Center, Centralised Utilities Facilities (CUF), Logistics Hub and Mixed Developments.
At the end of the project, we prepared a list of implementation plans that would guide the client through the implementation process. The team then conducted the syndication sessions with the relevant stakeholders to receive feedback and obtain their buy-in on the recommendation.
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