08/01/2026

BIZ & FINANCE THURSDAY | JAN 8, 2026

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KUALA Malaysia’s property market is entering 2026 on steadier footing, with growth driven less by volume and more by relevance, quality and sustainability, as economic stability, policy clarity and infrastructure spending reshape investor and occupier priorities. CBRE WTW group managing director Tan Ka Leong said the market is no longer about broad-based recovery but about how assets adapt to changing demand, particularly in offices, industrial properties and well-located residential developments. “With GDP growth expected at between 4% and 4.5%, manageable inflation and supportive monetary policy, the fundamentals are there. But what matters now is quality, productivity and long-term value,” he said at launch of CBRE WTW’s Malaysia Real Estate Market Outlook 2026. Tan noted that residential prices are expected to see only a “reasonable” increase of below 3%, with demand concentrating on well-located and sensibly priced products rather than speculative launches. Affordability, rather than demand, remains the key constraint, with loan rejections still high despite strong application volumes. In the commercial segment, ESG compliance has moved from being a competitive edge to a baseline requirement. Ungku Mohd Iskandar Ungku Ismail, managing director of CBRE WTW, said green-certified offices are consistently outperforming older stock, both in occupancy and rental resilience. “By 2025, over 90% of new office Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com LUMPUR:

Property market shifts from resilience to relevance

Sung said projects such as the Pan Borneo Highway and Kuching Urban Transportation System (KUTS) are improving accessibility and supporting demand for industrial, logistics and hospitality assets. He added that density controls and ample land supply have kept prices relatively stable, with future public transport projects expected to unlock further development potential. Looking ahead, investors are increasingly prioritising income stability over capital appreciation. Tan said institutional investors are focused on assets with strong and predictable cash flow, while speculative, short-term plays are losing appeal. “Industrial assets, quality offices and select residential locations with strong connectivity will continue to attract interest,” he said. “The market in 2026 is not about chasing growth at all costs, but about aligning with sustainability, infrastructure and real occupier needs.” Overall, CBRE WTW expects Malaysia’s property market to remain steady in 2026, with success defined by adaptability rather than scale, marking a shift from resilience to relevance.

and water constraints,” he said. “Growth will continue to come from E&E, advanced manufacturing, medical devices and supporting logistics.” He added that land scarcity on Penang Island is driving industrial expansion to the mainland, with the Penang Silicon Island project playing a strategic role in long-term capacity building. The state’s tight control over industrial land through the Penang Development Corporation has also limited speculation and preserved industrial relevance. In East Malaysia, Sabah’s property market is expected to remain stable. CH William Talhar & Wong Sdn Bhd Sabah managing director Cornelius Koh said demand continues to favour landed residential homes, while oversupply in certain segments has yet to reach critical levels. “Overhang has increased, but it’s not at crisis point,” he said. “The bigger issue is affordability and overall economic spending power.” In Sarawak, infrastructure remains the main catalyst. CH William Talhar Wong & Yeo Sdn Bhd managing director Robert Ting Kang

o Economic stability, policy clarity and infrastructure spending reshape buyer priorities

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completions were ESG-certified, and this year that figure is closer to 97%,” he said, adding that this is no longer optional as occupiers are prioritising efficiency, sustainability and workplace experience. CBRE WTW research and consulting director Mary Kurien said the Klang Valley office market continues to show a clear divide between prime and non-prime buildings. Prime, green-certified offices have seen stronger occupancy and rental performance since 2022, while older buildings are being forced to reposition through refurbishment or alternative uses. She added that selective conversions from offices to hotels or serviced apartments are likely to continue, supported by incentives and the need to address structural oversupply in certain submarkets. Ungku Iskandar, meanwhile said the Johor-Singapore Special Economic Zone (JS-SEZ), Forest City Special Financial Zone and the upcoming Johor-Singapore Rapid

strengthening

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investment flows. “Johor recorded a significant jump in approved manufacturing investments last year, making it one of the strongest-performing states,” he said, adding that clarity from the Malaysia-US Reciprocal Trade Agreement is helping investors make more informed, long-term decisions. CBRE WTW Johor Bahru director Jonathan Lo said demand continues to favour customised, technology ready industrial facilities, while data centre interest remains strong, although power supply and infrastructure readiness will be critical constraints. CBRE WTW Penang director Tan Chean Hwa said the state’s strength lies in its deeply entrenched electrical and electronics (E&E) ecosystem, supported by skilled talent, suppliers and decades of manufacturing experience. “Penang will not compete with Johor on data centres due to power

Master Tec secures RM32.9m TNB optional value award MALACCA: Master Tec Group Bhd has received an Optional Value award amounting to RM32.86 million from Tenaga Nasional Bhd (TNB) under Contract TNB104/2025 for the supply and delivery of underground cables and conductors for TNB’s distribution network. The contract covers the supply and delivery of underground cables and conductors of various sizes, reinforcing Master Tec’s position as a trusted supplier to Malaysia’s national utility, particularly in projects supporting grid supporting Malaysia’s power distribution infrastructure. “We view this as a strong endorsement of our manufacturing platform and operational discipline,” he said,

In the latest quarterly result announcement, Master Tec delivered another record quarter for the third quarter ended Sept 30, 2025, with revenue rising to RM115.83 million. This marks a 32.2% increase from RM87.63 million in the corresponding quarter last year, underscoring continued demand for the group’s cable products and expanding infrastructure solutions.

reinforcement, underground cabling, and distribution network upgrades. “The award of this Optional Value by TNB underscores the strength of our execution capabilities and the consistency of our product quality,” Master Tec Group CEO Tee Kok Hwa said. “It further validates our long-standing relationship with TNB and highlights Master Tec’s role in

With the Optional Value exercised, the revised contract value increases to RM142.40 million, up from the original contract price of RM109.54 million. The Optional Value is governed by specific performance and quality criteria and will be executed in accordance with the existing contractual framework.

Master Tec Group is a premier player in the manufacturing and distribution of power, control and instrumentation cables.

Bioeconomy Corporation targets RM2.2 billion revenue in 2026 PUTRAJAYA: Bioeconomy Corporation aims to generate at least RM2.2 billion in revenue from companies under its BioNexus Status and Bio-based Accelerator (BBA) programmes in 2026, said CEO Mohd Khairul Fidzal Abdul Razak. circular economy and unlock new economic opportunities,” he said. He added that since 2005, Bioeconomy Corporation has provided end-to-end support to companies, including investment promotion, SME and talent public listings on local and international exchanges, including in New York, London and Australia, and facilitated more than 1,900 job opportunities through its BeST 2.0 programme since 2021. Meanwhile, the Malaysian Bioeconomy Development companies through its BioNexus Status and BBA programmes. Science, Technology and Innovation Minister Chang Lih Kang said the corporation’s 20-year milestone reflects the government’s confidence in its role to lead Malaysia’s bioeconomy towards global

aspiration of positioning Malaysia as a high-technology bioinnovation nation by 2030,” he said. The ministry, he said, is confident that even greater value will be achieved in the coming years, particularly as the organisation sharpens its focus over the next five years on six high-value, high-growth sub-sectors: next-generation proteins, regenerative propagation, sustainable materials, bio-based chemicals, regenerative medicine and precision diagnostics. “This strategic direction supports the 13th Malaysia Plan (2026–2030), contributing to economic growth through blue, green and silver economy initiatives,” he stressed. – Bernama

development, market access and funding facilitation, in line with the National Science, Technology and Innovation Policy 2021-2030. He also shared that over the past five years, more than 560 industry players were trained to enhance regulatory and tax compliance, talent management and access to funding, while Malaysia’s first biotechnology unicorn was created in 2024. The corporation also enabled 18 BioNexus Status companies to achieve

In a statement yesterday, he said that the target is in line with the Madani government’s priorities, and that the company will also explore the adoption of digital and artificial intelligence-enabled solutions to help companies scale and accelerate their growth more efficiently. “The convergence of AI across agriculture, healthcare and industrial bioeconomy sectors is expected to strengthen food security, advance healthcare innovation, support the

competitiveness, particularly under the National Biotechnology Policy 2.0. “In 2025 alone, estimated investment and commercial value that was captured under Bioeconomy Corporation’s facilitation increased from RM1.55 billion in 2024 to over RM2.44 billion, representing nearly 60% growth. “With the support of Mosti, Bioeconomy Corporation continues to drive progress under NBP 2.0, with the

Corporation has contributed RM39.9 billion to Malaysia’s gross domestic product over the past 20 years, reinforcing its role as a key driver of the nation’s biotechnology and bio based industries. Operating under the Ministry of Science, Technology and Innovation, the agency has facilitated over RM14.6 billion in approved investments, created more than 16,600 jobs nationwide and supported nearly 650