Property news

REIT Listings & M&A to Drive Property Sector in 2026 — RHB IB

1 Jan 2026

KUALA LUMPUR – RHB Investment Bank expects REIT listings and mergers & acquisitions to be the main highlights of Malaysia’s property sector in 2026, supported by resilient demand, solid sales momentum, and several high-visibility catalysts. Property sales rose 11.4% year-on-year in the first nine months of 2025, signalling sustained buying interest despite the expanded sales and service tax (SST) and targeted fuel subsidies. Excluding overseas contributions, domestic sales still recorded a 1% year-on-year increase, aided by stronger project launches and improved conversion of bookings into sales. Key catalysts for 2026 include the completion of the Johor Bahru–Singapore Rapid Transit System Link by the end of the year, the planned listing of Sunway Healthcare Holdings Bhd in the first quarter, potential REIT listings by several developers, and Sime Darby Property’s first data centre facility at Elmina expected in the third quarter. RHB also expects the Iskandar Malaysia property market to see increased launches and activity ahead of the RTS Link completion. A more accommodative interest rate environment could encourage landbanking, asset acquisitions, and potential M&A, unlocking further value for developers. The bank maintains its ‘overweight’ call on the property sector, naming Sunway and Sime Darby Property as its top picks.

Service Tax on Rentals for Malaysian MSMEs Reduced to 6%

1 Jan 2026

KUALA LUMPUR – The service tax on rentals for micro, small and medium enterprises (MSMEs) has been reduced from 8% to 6%, announced Prime Minister Datuk Seri Anwar Ibrahim. The 8% tax, which came into effect on July 1, 2025, applied to the rental of non-residential premises such as offices, warehouses and commercial properties. The reduction is expected to ease the financial burden on MSMEs, though it comes with an estimated revenue loss of nearly half a billion ringgit annually. Newly established MSMEs will benefit from a one-year deferment of the service tax on rentals. In addition, the tax exemption threshold has been increased to include businesses with an annual turnover of up to RM1.5 million, up from the previous RM500,000–RM1 million range. This move is aimed at supporting smaller enterprises and encouraging business growth in the sector.

Sunway Pier Harbour (Klang) Set to Boost Tourism and Economy by 2028

28 Oct 2025

KUALA LUMPUR – The Sunway Pier Harbour project in Port Klang, led by the private sector, is recognised by the government for its strong potential to boost tourism and the local economy. It is being built on the former ferry terminal site and will become a modern waterfront attraction. The project is under construction and set to finish by Q2 2028. All planning, environmental and building approvals have been secured. Key highlights: - Upgrading Port Klang railway station for direct pier access. - Includes commercial areas and public recreational spaces. - Expected to contribute RM5 billion to GDP, attract 30 million tourists, and create 1,000+ jobs over 10 years. - No disruption to logistics or Pulau Ketam routes; existing facilities will be improved.

Country Garden’s US$13b Restructuring Plan

1 Jan 2025

BEI JING – Country Garden will issue about US$13 billion in bonds as part of its offshore debt restructuring to tackle one of China’s biggest property defaults. The plan also includes new shares and warrants, potentially cutting over US$11 billion in debt. The restructuring involves zero-coupon mandatory convertible bonds, including US$7.5 billion for scheme payments and US$5.4 billion for settling creditor claims. A small US$39.5 million tranche will settle a bilateral loan. These bonds will convert into equity over time, diluting existing shareholders but giving creditors a recovery path. Chairlady Yang Huiyan’s vehicle, Concrete Win, will subscribe to new shares at HK$0.60 to settle US$1.14 billion in shareholder loans. Country Garden will also issue more shares at HK$0.60, pending approval at an upcoming EGM. Banks under Class-1 lenders will get a two-year US$89 million loan and up to 1.16 billion warrants priced at HK$0.60, which can offset the loan. The plan comes as China’s property sector remains in a prolonged slump. Country Garden aims to complete the restructuring by year-end, with shareholders voting on Dec 3.

Revised Urban Renewal Bill Gains Broad Support

KUALA LUMPUR – The revised Urban Renewal Bill has received strong backing from various stakeholders, said Housing and Local Government Minister Nga Kor Ming. Over 5,000 participants at the National Planning Congress expressed support for the updated version. Nga said the ministry incorporated most of Umno’s 14 recommendations into the revised bill and remains open to further suggestions from all parties. The bill’s second reading was postponed to allow more in-depth engagement with stakeholders. To date, the ministry has held 122 engagement sessions with state governments, planners, the Bar Council, politicians, and the public. The bill has also been presented three times to a special select committee and discussed at three Cabinet meetings, securing approval from the National Council for Local Government. The bill defines three project types: redevelopment (teardown and rebuild), regeneration (repair or upgrade), and revitalisation (area improvement without demolition). The initial version faced resistance from the opposition and some government MPs, leading to amendments, including a new consent rule announced by Nga in August.

Malaysia’s Data Centre Boom Fuels RM126b Supercycle

KUALA LUMPUR – Malaysia’s data centre industry is entering a major boom, set to grow from US$4 billion in 2024 to US$13.6 billion by 2030. This rapid expansion, driven by AI and cloud demand, is expected to create a RM126 billion construction supercycle, with capacity projected to reach 5 GW. CIMB expects RM13–14 billion in upcoming major contracts by mid-2026. Early winners include Gamuda, IJM, and Sunway Construction, though competition from global players is rising. M&E contractors are also set to benefit as project localisation increases. Energy demand is accelerating. Tenaga Nasional has secured 6.7 GW in electricity supply agreements for 47 data centre projects, and Malaysia’s total data centre capacity could reach 5,522 MW by 2030. Johor is now the fastest-growing data centre hub in ASEAN. Malaysia is also attracting global investors. Between 2021–2024, MIDA approved RM278 billion in digital investments, with RM185 billion going to data centres and cloud. Major tech giants like Microsoft, Google, Oracle, and AWS are pumping billions into large AI-ready campuses. Policy support is strong. The government has allocated RM2 billion to build a sovereign AI ecosystem, with RM5.9 billion backing national cloud infrastructure. A Malaysia–US trade agreement worth US$150 billion further boosts confidence and secures long-term digital investment. Overall, Malaysia is positioning itself as Southeast Asia’s next digital infrastructure powerhouse, led by AI demand, strong policies, major investments, and Johor’s rapid rise.

KPKT Blacklists Developers to Curb 107 Abandoned Projects, Protect Homebuyers

KUALA LUMPUR – The Housing and Local Government Ministry (KPKT) says blacklisting developers and company directors behind abandoned housing projects remains crucial to protect buyers and maintain confidence in the property market. From Dec 2022–Sept 2025, 26 abandoned projects were revived, but 107 projects affecting 15,553 buyers remain stalled. As of Mar 31, 2025, 173 unlicensed developers have been listed for causing losses across Peninsular Malaysia. Key highlights: - A project is deemed abandoned if it misses SPA timelines and shows no construction for 6+ months. - Blacklisted developers are barred from new licences and have their Housing Development Account frozen. - Experts say blacklisting deters misconduct but does not solve structural issues; fines remain too small. KPKT updates: - Reviewing the Housing Development Act to strengthen governance. - Developers are liable for misleading claims; buyers can seek action via tribunal or court. - Defect Liability Period: 24 months for rectification after handover. 10:90 BTS model: - Buyers pay 10% upfront, 90% upon completion and CCC. - A new risk-sharing framework is being studied for sustainable implementation.

Penang LRT to Extend to Seberang Perai — PM Anwar

BUKIT MERTAJAM – The federal government will extend the Penang LRT project to Seberang Perai to ensure balanced growth, said Prime Minister Datuk Seri Anwar Ibrahim. He decided on the extension after reviewing the original plan, which only covered Penang Island. Anwar said the line will now reach Penang Sentral, connecting Permatang Pauh, Bagan and Nibong Tebal, and improving links between the island and mainland. The higher project cost, he explained, is due to this expanded alignment, not uncertainties. The Mutiara Line LRT, spanning 29.5km with 21 stations, will be the first LRT outside the Klang Valley, linking Penang South Reclamation, Komtar and Penang Sentral. At the event, Anwar also launched the RM3 billion Juru–Sungai Dua Traffic Dispersal Project (PTJSD), expected to cut travel time from one hour to 20 minutes. He urged agencies to speed up completion so the public can benefit sooner.

Mah Sing Launches RM528mil M Cora in Penang

KUALA LUMPUR – Mah Sing Group will launch M Cora, a RM528mil mixed-use project in Penang, featuring condominiums and commercial suites, with prices starting from RM426,000. The launch is targeted for 2H 2026. Key points: - Condo sizes: 904–1,015 sq ft (2-bedroom). - Commercial suites: 450, 660, 750 sq ft (subject to approval). - Targets first-time buyers, working adults, families, and investors. - Built on 2.83 acres in George Town, 450m from the upcoming Mutiara LRT station, fronting the Tun Dr Lim Chong Eu Expressway. - Land was purchased for RM51.8mil; funded by internal funds + bank financing. This is Mah Sing’s 4th Penang development, following Southbay, Ferringhi Residence, and Ferringhi Residence 2. The group says M Cora will offer a future-forward lifestyle and strengthen its long-term commitment to Penang, with strong connectivity and growth potential.