LBS Bina Expands South with RM7 Billion Industrial Development in Klebang, Melaka
Property developer LBS Bina Group Bhd (KL:LBS), in collaboration with Oriental Holdings Bhd (KL:ORIENT), is spearheading a RM7 billion mixed industrial development in Klebang, Melaka — marking a bold step in expanding its footprint beyond the Klang Valley into high-potential southern growth corridors.
Set to be developed over approximately 277 hectares (684 acres) in four phases, the project is designed to stimulate local economic chains, attract new investments, and create thousands of jobs, both during construction and post-completion.
🏗️ Beyond Housing: A Strategic Shift Toward Holistic Mixed Use Development
Tan Sri Dr Lim Hock San, LBS Bina’s Group Executive Chairman, shared that while the company remains deeply committed to its core mission of affordable housing, its venture into industrial and commercial sectors is a natural evolution aligned with Malaysia’s broader economic needs.
“This is not a change in direction, but rather an expansion of our development capabilities,” Lim explained. “We are responding to rising demand for integrated and future-ready townships that combine residential, commercial, and industrial ecosystems.”
📍 Why Klebang? Southern Growth Corridor Holds Long-Term Promise
Klebang, located on the northern edge of Melaka city, is emerging as a logistics and industrial hub, thanks to:
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Proximity to the Straits of Melaka Waterfront Economic Zone (SM-WEZ)
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Expansion of regional infrastructure and expressway connectivity
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Ongoing urbanisation of surrounding areas including Batu Berendam, Ayer Keroh, and Melaka Gateway
Lim sees Klebang’s strategic location and available land banks as ideal for long-term sustainable development, especially in sectors like:
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Light manufacturing
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Logistics and warehousing
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Retail showroom-warehouses
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SME industrial parks
💼 Economic Spillover Effects: From Jobs to Community Growth
According to LBS, the project will bring broad socio-economic benefits:
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Employment creation in construction, operations, maintenance, and retail
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Opportunities for SMEs and local entrepreneurs through industrial lot ownership or leasing
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Business ecosystem development, including logistics, food services, and F&B outlets
This is in line with Malaysia’s push toward regional development balance, encouraging growth outside the Klang Valley and uplifting tier-2 cities like Melaka as investment-ready destinations.
🔍 Project Highlights: Key Details Known So Far
| Feature | Details |
|---|---|
| Project Type | Mixed-use industrial and commercial township |
| Total GDV | RM7+ billion |
| Land Size | 277 hectares (approx. 684 acres) |
| Phases | 4 |
| Joint Developers | LBS Bina Group Bhd & Oriental Holdings Bhd |
| Project Status | MoU signed; definitive agreement to follow |
| Core Targets | SMEs, logistics firms, commercial users, industrial investors |
🌱 Balanced, Sustainable Urban Growth Vision
Lim emphasised that sustainability and inclusivity are embedded in LBS’ strategic growth model.
“We’re building more than structures — we are creating liveable, productive, and future-ready ecosystems. A well-balanced mix of housing, commercial, and industrial components is vital for the health and resilience of communities,” he said.
LBS has successfully developed integrated townships in the Klang Valley such as Kita @ Cybersouth and LBS Alam Perdana, and now intends to replicate that success in Melaka, Johor, and other southern states.
🏢 LBS’ Broader Portfolio Evolution
While LBS has historically been associated with affordable housing, its diversification strategy is rapidly evolving. Recent initiatives include:
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Tourism-oriented projects in Cameron Highlands
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Commercial suites and retail developments in Shah Alam and Cyberjaya
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Mixed-use hubs with integrated schools, parks, and community centres
This Melaka industrial venture signals a long-term economic play, designed to generate recurring income, build industrial partnerships, and contribute to regional GDP.
🧭 What’s Next for the Klebang Project?
The next steps for the RM7 billion development include:
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Finalisation of the Definitive Joint Development Agreement
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Submission of master planning and zoning applications to local authorities
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Infrastructure roll-out including roads, utilities, drainage, and broadband
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Launch of industrial lots and showroom-warehouse parcels, likely within Phase 1
The entire development is expected to span several years, with early phases possibly focused on light industrial and commercial segments, supported by public amenities and retail components.
✅ Conclusion: A Strategic Growth Engine for Melaka and LBS Bina
With this landmark RM7 billion project, LBS Bina is not only deepening its portfolio diversification — it is helping shape Melaka’s future as a southern industrial and investment hub.
This move reflects a broader trend where property developers are no longer just building homes but are curating integrated townships, aligned with national development blueprints and investor expectations.
The Klebang development stands as a catalyst for job creation, business growth, and infrastructure upliftment, promising to transform Melaka’s economic narrative over the next decade.
