“LBS Bina and Oriental Holdings sign MoU for a RM7 billion industrial development in Klebang, Melaka, set to transform the area into a key SME and logistics hub under the SM-WEZ growth corridor.“
Melaka, 16th May 2025, 01.09pm – LBS Bina Group Bhd has signed a Memorandum of Understanding (MoU) with Oriental Holdings Bhd to jointly develop a RM7 billion mixed-use industrial project in Klebang, Melaka, marking a major strategic expansion into the southern region of Peninsular Malaysia.
In a media statement, LBS Bina said the project will focus on creating an integrated industrial and commercial hub spanning approximately 561 acres, aimed at boosting economic activity and job creation in the state. The development will be rolled out in four phases, with specific details to be finalised in upcoming Definitive Agreements.
Strategic Location within the SM-WEZ Growth Corridor
The project is located within the Straits of Melaka Waterfront Economic Zone (SM-WEZ), a key area identified in Melaka’s long-term development strategy due to its coastal accessibility, growing infrastructure, and regional trade potential.
“Klebang’s strategic location makes it ideal for industrial growth. Our collaboration with Oriental Holdings reinforces our vision to drive Melaka’s economic transformation through sustainable, people-centric development,” said Tan Sri Lim Hock San, Group Executive Chairman of LBS Bina.
Tailored for SMEs in High-Growth Sectors
The proposed development is set to cater primarily to small and medium-sized enterprises (SMEs) across sectors such as:
- Oil and gas production
- General manufacturing
- Food and beverage supply chains
- Warehousing and logistics
LBS Bina added that strategically located industrial units along major access roads will also offer commercial potential, functioning as hybrid showroom-warehouse spaces to attract both local businesses and regional investors.
Melaka’s Industrial Property Market Gaining Momentum
Citing market data, LBS noted that Melaka ranks sixth among Malaysian states in industrial property transactions. The vacant land and semi-detached factory segment has seen double-digit growth, driven by rising demand from investors and owner-occupiers.
“The project taps into this demand, while also laying the groundwork for a modern, industrial ecosystem in Melaka,” the company said.
WCE Anticipated to Be Key Growth Catalyst
LBS Bina highlighted that once the alignment of the West Coast Expressway (WCE) is finalised, the highway is expected to catalyse economic activity across coastal towns including Klang, Port Dickson, Melaka, Muar, and Batu Pahat.
“The WCE will enhance connectivity and create positive spillover effects for industrial zones along the corridor,” said the company.
Paving the Way for Sustainable Regional Development
The MoU signing was witnessed by Melaka Chief Minister Datuk Seri Utama Ab Rauf Yusoh, reinforcing the state’s support for the initiative.
“Together with Oriental Holdings, we aim to transform Klebang into a vibrant, future-ready township that delivers long-term value to stakeholders and uplifts the socio-economic landscape of Melaka,” added Tan Sri Lim.
Key Highlights:
Collaboration between LBS Bina and Oriental Holdings Bhd
- RM7 billion GDV mixed-use industrial development in Klebang, Melaka
- 561-acre project in 4 phases targeting SMEs in high-impact industries
- Part of the SM-WEZ corridor and aligned with future WCE infrastructure growth
- Aimed at boosting local industry, logistics, and economic resilience
