The adoption of sustainable construction in Malaysia continued to gain momentum last year, with green-certified building developments increasing by 25% year-on-year, driven primarily by high-rise residential projects, logistics facilities, and industrial developments.
According to GreenRE Sdn Bhd chairman Datuk Seri FD Iskandar, awareness of the long-term benefits of green buildings has grown significantly among developers, contractors, and property buyers. In addition to operational savings, purchasers of green-certified properties are increasingly able to secure more attractive financing terms from banks.
With broader support from industry players, financial institutions, and regulators, Iskandar expects the uptake of green building practices to continue accelerating. If annual growth remains within the 20% to 25% range, it would signal steady progress toward a more sustainable built environment across the country.
At present, the strongest demand for certification remains concentrated in high-rise residential towers, industrial properties, logistics hubs, and warehouse developments — sectors that are also seeing heightened investor interest in industrial land in Selangor and commercial property in KL, where efficiency and ESG compliance are becoming critical decision factors.
Iskandar noted that Johor’s southern region is experiencing growing interest in green certification for industrial developments, particularly with several data centre projects in the pipeline. While many of these projects have already registered with GreenRE, certification typically proceeds only after construction begins.
As such, widespread certification for data centres has yet to materialise, as many projects remain in the planning or early development stages. Nonetheless, this trend reflects increasing ESG awareness among industrial developers — a movement that is also influencing demand for industrial property in the Subang area and factory developments in Puchong, where sustainability credentials are becoming a competitive advantage.
GreenRE will co-organise International Sustainability Week (ISW) 2026, scheduled for Sept 10–11 at the Malaysia International Trade and Exhibition Centre (MITEC) in Kuala Lumpur. Positioned as a national platform with regional relevance, the event aims to advance sustainability in urban development and the built environment.
Themed “From Certification to Transformation: Building a Net Zero Future Together”, ISW 2026 will bring together policymakers, developers, architects, engineers, planners, and city authorities to focus on implementation, performance measurement, and industry readiness, anchored by recognised standards such as GreenRE certification.
The event will comprise two main components. The International Green Build Conference (IGBC) will address ESG requirements, regulatory alignment, and real-world challenges in applying green standards to buildings and townships. Meanwhile, GreenScape, the International Green Innovation Exhibition, will showcase certified and certification-ready technologies, products, and solutions across the construction and property sectors.
This integrated format allows industry discussions to translate quickly into actionable solutions, helping developers, investors, and service providers form partnerships with greater confidence.
Iskandar highlighted that GreenRE’s involvement in ISW 2026 reinforces the shift of sustainability from regulatory compliance to mainstream adoption. While green certification was once driven largely by policy requirements, it is now supported by stronger commercial buy-in from developers and financial institutions.
Although green buildings may involve slightly higher upfront costs, long-term savings through energy efficiency, reduced maintenance, and operational resilience often outweigh the initial investment — particularly for office space in Bukit Jalil, logistics facilities, and industrial assets targeting multinational tenants.
Qube Integrated executive chairman Richard Teo said the organisers are targeting between 5,000 and 10,000 trade visitors, with participation from approximately 150 companies, reflecting strong industry interest in sustainable development.
As ESG considerations increasingly influence investment decisions, the growth of green-certified developments is expected to further shape demand for industrial land in Selangor, commercial property in KL, and strategically located industrial hubs that meet both operational and sustainability standards.
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