20/08/2026

THURSDAY | AUG 20, 2026

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PROPERTY

PROPERTY Malaysian market displays resilience

As more facilities become operational and generate recurring income streams, the sector is expected to attract broader participation from institutional investors. Growing capital market activity including IPO, REIT and merger and acquisition transactions, reflects the increasing maturity of data centres as an investable asset class. Malaysia’s office market remained resilient in 1H’26, supported by measured new supply, improving occupancy and sustained demand for high-quality office space. While new completions were relatively muted across major markets, the limited supply environment supported continued absorption and occupancy gains. Tenant demand remained concentrated in premium, well-located and modern office buildings, with Grade A assets outperforming older stock, reflecting the ongoing flight to quality seen in recent years. “Occupier demand in Klang Valley remained broadly stable in 1H’26, though underlying performance continued to diverge across submarkets and asset quality segments. Occupancy levels were largely steady, reflecting a market that continues to absorb recent completions while maintaining selective leasing activity across established locations,” said office strategy & solutions executive director Teh Young Khean.

ongoing capacity delivery, indicates that growth momentum remains intact. However, increasingly stringent approval requirements and greater scrutiny on resource availability suggest that future developments are likely to be assessed more selectively, with stronger emphasis on execution and long-term viability. “Data centre-related land transactions in Klang Valley regained momentum in 1H’26 following a relatively subdued 2H’25, with approximately RM1.43 billion worth of disclosed transactions involving 293 acres of industrial land recorded in Banting and Kapar. Accessibility to power infrastructure and connectivity continues to drive data centre site selection, creating opportunities beyond established data centre hubs,” said land & industrial solutions executive director Chelwin Soo. Power, water and connectivity will remain key determinants of future development activity and site selection. The growing scale of hyperscale and AI-related facilities is increasing the importance of securing power allocations, supporting utility infrastructure and long-term expansion capacity. As a result, future developments are expected to increasingly gravitate towards locations that can demonstrate infrastructure readiness and resource availability to support large-scale deployments.

pinned by a broad manufacturing and logistics base. Approved manufacturing investments saw 29.2% year-on-year (y-o-y) growth, with 134 approved projects in Q1’26. Trade-related indicators also remained positive, with Port Klang handling approximately 15.1 million TEUs in 2025 and continuing to record throughput growth in Q1’26. Continued expansion in container volumes indicates that manufacturing, distribution and consumption activities remain supportive,” said land & industrial solutions senior executive director Allan Sim. The industrial market outlook is expected to remain resilient through 2H’26, supported by a strong manufacturing base, continued investment in industrial and logistics infrastructure, and expanding growth corridors across key states. However, businesses are becoming more cautious amid global trade tensions, geopolitical risks, tariff uncertainties, rising logistics costs and supply chain disruptions, which are likely to moderate expansion plans and lengthen investment decision making. The Malaysia data centre market remains in a growth phase, but is becoming increasingly disciplined, with greater emphasis on project execution, infrastructure readiness and long-term sustainability. The continued expansion of hyperscalers and data centre operators, alongside

o Demand remained strong in first-half 2026 with interest favouring quality, future-ready and specialised assets: Knight Frank report

KUALA LUMPUR: The first half of 2026 showcased a dynamic outlook for Malaysia’s real estate market. Demand remained strong, catalysed by growth in investment and the services sector, with limited in coming supply seeing differentiation in expansion favouring quality, future-ready premises and special ised formats, according to the Knight Frank Malaysia (KFM) Real Estate Highlights (REH) first-half 2026 report. Real estate growth was underpinned by resilient funda mentals, including 5.4% GDP growth in Q1’26. Stable inflation and interest rates, continued household spending, strong employment, tourism recovery and infrastructure investment drove the office, retail, hospitality and residential sectors, while sustained investment in technology, digital infrastructure and manufacturing supported industrial and data centre demand. “Growing preference for specialised formats was seen, with occupiers prioritising assets aligned with specific operational requirements. These included cold chain, data centre and worker accommodation facilities in the approximately 419.17 acres of freehold land in Kulai at the group’s EGM recently. MS Industrial Park @ Kulai will be undertaken by M Industrial Development Sdn Bhd, a 60%-owned subsidiary of Mah Sing, with KLK Land Sdn Bhd holding the remaining 40% equity interest. The partnership combines Mah Sing’s development expertise, execution capabilities and market understanding with KLK Land’s track record and strong sustainability focus, supporting the advancement of sustainable industrial development in Malaysia. The approved land acquisition with a purchase consideration of RM273.87 million, was concluded on a willing buyer-willing seller basis and reflects fair market value, supported by an independent valuation of RM274 million by Knight Frank Malaysia Sdn Bhd. MS Industrial Park @ Kulai builds on Mah Sing’s established presence in Johor, where the group has successfully delivered residential townships and industrial developments with a cumulative GDV of approximately RM4.47 billion since entering the Johor market in year 2000. Today, Johor remains one of Mah Sing’s most important growth markets, with ongoing developments including

Banking & Finance The diversified product is what differentiates MS Industrial Park @ Kulai from conventional industrial parks. It ensures the development remains resilient across different market cycles by serving a broad industrial A, connected/transit-oriented developments and flexible workspaces in the office sector; and integrated lifestyle and retail experiences in the retail sector,” said Knight Frank Malaysia group managing director Keith Ooi. New opportunities were also evident as hotspots matured outside Klang Valley. These include evolving industrial hubs in Kulai and Seberang Prai, Johor; and Kudat, Kota Belud and Beaufort, Sabah, as well as growing requirements for maritime and energy-related premises in Miri’s office market, and increased demand for hotels and short-term rentals in Sarawak’s major cities due to stronger inbound tourism. Across Malaysia, industrial market performance was supported by resilient manufacturing investment, trade activity and ongoing infrastructure development. Klang Valley and Penang continued to lead growth, with RM4.8 billion and RM4.9 billion in approved manufacturing investments respectively in Q1’26, reinforcing their importance as key manufacturing hubs. “Klang Valley remained under With MS Industrial Park @ Kulai, Mah Sing’s total landbank will increase to approximately 2,682.51 acres, providing the group with a stronger platform to pursue future residential and industrial growth opportunities. Mah Sing founder and group managing director Tan Sri Leong Hoy Kum, said, “We are grateful for the strong support and confidence shown by our shareholders. Their approval reflects a shared conviction that MS Industrial Park @ Kulai is a strategically important development that will strengthen Mah Sing’s industrial portfolio while creating sustainable long-term value for our shareholders.” Subject to the relevant approvals, MS Industrial Park @ Kulai is planned to comprise a diversified mix of cluster, semi-detached and detached factories. A key feature of the masterplan is the inclusion of vacant industrial land parcels ranging from approximately 1 acre to 8 acres, providing the flexibility to accommodate customised industrial facilities, logistics hubs and potential data centre developments. sector; Grade

Mah Sing set to build RM2.26 billion industrial park in Kulai KUALA LUMPUR: Mah Sing Group Bhd is set to develop MS Industrial Park @ Kulai, a new integrated industrial development with an estimated GDV of RM2.26 billion, after shareholders approved the acquisition of M Grand Minori, M Minori, Meridin East township and the upcoming M Tiara 2 and Tiara Hills, representing an estimated development value of approximately RM11.62 billion.

From left: Mah Sing group CEO & executive director Datuk Voon Tin Yow, chairman and independent non executive director admiral (R) Tan Sri Abu Bakar Abdul executive director Lionel Leong Jihn Haur, executive director Datuk Steven Ng Poh Seng and Leong Hoy Kum. Jamal, deputy group CEO &

logistics and technology industries, supported by structural catalysts including the JS-SEZ and the upcoming Johor Bahru-Singapore Rapid Transit System Link, which is expected to enhance cross-border connectivity and facilitate greater economic activity. Mah Sing believes MS Industrial Park @ Kulai is well positioned to meet growing demand from multinational corporations, local industrialists and technology companies seeking scalable industrial solutions within the Southern Corridor.

International Airport, the Port of Tanjung Pelepas, Johor Port, the North-South Expressway, Senai Desaru Expressway and the Second Link to Singapore, providing businesses with seamless access to regional and international markets. MS Industrial Park @ Kulai is well positioned to benefit from Johor’s continued emergence as one of Southeast Asia’s leading investment destinations. The state continues to attract significant investments across advanced manufacturing, electronics, semiconductors, renewable energy,

spectrum of industrial users, from small and medium enterprises to multinational corporations, thereby creating a vibrant and sustainable industrial community. Designed as an integrated industrial ecosystem, the development will serve a broad range of users, including manufacturers, supporting industries, logistics providers, warehousing operators and technology-driven businesses. Strategically located within Iskandar Malaysia, the development enjoys excellent connectivity to Senai

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