S P Setia Bhd (Setia or the Group) continues to trailblaze in its sustainability efforts and framework, whilst adapting and amalgamating the initiatives, and extending its frontier in industrial estate.

In its upcoming pipeline, Setia has plans to utilise its land bank in Setia Alaman in Shah Alam, Setia Fontaines in Penang and Tanjung Kupang in Johor (which altogether is approximately 956 acres), to develop industrial-based business parks.

Additionally, the Group has recorded an impressive RM1.3 billion in sales specifically for its properties with green features between 1H2023 to 2Q2024.

Setia Chief Strategy Officer Lindayani Tajudin opines, “At Setia, we remain committed in achieving our Setia Green Roadmap goals, in addressing climate change, and in prioritising biodiversity, as we look into strategically utilising our land banks in Setia Alaman, Setia Fontaines and Tanjung Kupang to develop industrial-based business parks.”

“Our aim is to design, cultivate our upcoming business parks to become the new benchmark in the industry, or rather what we call as “high-value green industrial parks”, featuring world-class infrastructure and data centres.”

Creating high-value green industrial parks

To date, Setia has a total of 956 acres of land bank carved out for industrial development, with a total estimated gross development value (GDV) of over RM6 billion, spread across three strategic locations in the Central, Southern and Northern regions, that are progressing steadily.

Lindayani reveals, “In the Central region, our 339-acre Setia Alaman Industrial Park in Klang is the most advanced so far, situated in the mature township of Bukit Raja, Klang – Shah Alam area. It is equipped with world-class infrastructure and access roads, with strategic connectivity.”

She adds, “With an estimated GDV of RM3 billion, we are now in active joint-venture (JV) negotiations with a number of international partners serving the light-to-medium industries.”

In the Johor region, state approval was obtained in September 2023 for Setia’s Tanjung Kupang site, a 307-acre parcel near Tanjung Pelepas with an estimated GDV of RM1.4 billion. “In Setia Fontaines, Penang, we are in the process of rezoning 310 acres out of the 1,691 acres for industrial use, with an estimated GDV of RM1.6 billion.”

According to Lindayani, Setia recognises the increased demand for industrial properties, signalling a lucrative opportunity in the market. “Upon observing the market demand, we are banking on businesses that are looking for manufacturing, warehousing or distribution facilities, with amenities and infrastructure tailored to industrial needs,” she said, adding that Setia hopes to attract companies seeking efficient and well-equipped spaces for their operations.

Apart from developing high-value green industrial parks and embedding its sustainable initiatives, Setia’s overall trajectory and long-term plan is to diversity in its product line.

“Our focus, diversification and expansion into world-class industrial parks development in Setia Alaman, Tanjung Kupang and Setia Fontaines allow Setia to tap into new markets and cater to the growing demand for industrial real estate, further diversifying our revenue streams in the long run.” The industrial parks are expected to bring in a consistent revenue for the Group for the next five to eight years, she added.

Addressing climate change and carbon neutrality

As for its framework in FY2024, Setia is on track in finalising its baseline of Scope 3 initiatives, with new considerations on their operations including internal KPI target for ESG initiatives for carbon neutral (short-term, medium-term and long-term); addressing climate change impact to the development and townships, prioritising focus on biodiversity, preservation and conservation, and community engagement through landscape strategy and planning.

“This year, we have conducted roadshows for our Team Setia in inculcating sustainability awareness. On 28 August 2024, we have successfully held and concluded our Sustainability Day 2024 with the theme of “Creating Green and Inclusive Spaces” to address the needs of the people and the planet.”

“Our primary goal is to ensure and implement sustainable solutions across our business. We are confident that we will be able to achieve our targets within our sustainability framework in the long-term.”

Some of the measures taken include awarding contracts for projects with green features, including green switches and solar panels for all landed residential.

“We are in the midst of finalising our standalone Biodiversity Policy in Q42024 with key material issues of; Climate Change Impact on Nature and Biodiversity; Conservation in Land, Freshwater Ecosystems; Sustainable Resource Use and Replenishment; Pollution reduction and Biodiversity Protection; Management and Control of Invasive Species and Biodiversity Conservation,” said Lindayani.

Meanwhile, Setia has completed its Setia Green Roadmap, which acts as a guidance for the Group’s sustainable transition, with interim targets and actionable steps toward achieving the Net Zero Carbon by 2050.

Setia launched Setia eGreen Living in July 2023 with nine innovative features and contributed towards the RM851 million in sales in FY2023.