KUALA LUMPUR: AREA Group, via its unit AREA Real Estate Advisory Sdn Bhd, will continue to provide advisory services for the China–Malaysia “Two Countries, Twin Parks” initiative, an US$20 billion (RM83.8 billion) regional investment plan spearheaded by the Shenzhen Government Procurement Association (SGPA).

The collaboration involves developing 607 hectares (ha) of next-generation industrial land at PENTAS Industrial City, within the 1780ha Delapan Special Border Economic Zone (Delapan SBEZ) in Kedah.

The latest agreements – signed on Sept 12, 2025 – build on a Heads of Agreement and MOU inked in April 2025 between SGPA and AREA. The new pacts include a bilateral cooperation agreement between SGPA and Northern Gateway Sdn Bhd (NGX), the Ministry of Finance Inc.-owned master developer of Delapan SBEZ, and an ecosystem framework agreement between Standard Perpetual Global OFC (SPG), China Sea Alliance Service Ltd (CSA), and NGX to guide the creation of a Generation-5 Industrial Park, modelled after the world-renowned Shenzhen Industrial Park.

AREA will advise on the design, funding, and phased development of PENTAS Industrial City.

In a statement, its executive chairman, Datuk Stewart LaBrooy, said the initiative will attract Chinese enterprises from consumer electronics, drone technology, semiconductors, sensors, renewable energy, and food-safety manufacturing, positioning Malaysia as a regional hub for high-tech industries.

He said the agreements set the foundation for Malaysia’s first Generation-5 Industrial Park – complete with smart infrastructure, integrated IoT systems, sustainable energy solutions, and a circular economy model.

This will not only draw high-quality investments but also establish a new national benchmark for industrial development, LaBrooy said.

He emphasised that the collaboration signals a new strategic phase of Chinese investment in Malaysia, promising high-value job creation in manufacturing, logistics, and services; advanced technology transfer and localisation of Chinese know-how; and expansion of Malaysia’s export capabilities and supply-chain ecosystem across Asean.

LaBrooy said the initiative is expected to strengthen innovation networks, boost gross domestic product and tax revenues, and advance the objectives of the Belt and Road Initiative while deepening China–Malaysia industrial and technological ties.

When completed, PENTAS Industrial City will be the first Generation-5 Industrial Park in Malaysia, positioning the Delapan SBEZ as a regional hub for high-tech, sustainable manufacturing and global supply chains.