Week 19 - 2026
MALAYSIA KEEPS POLICY RATE AT 2.75% AS EXPECTED, KEEPS EYE OUT FOR IRAN WAR STRAINS
The Edge and The Sun Daily, 08/05/2026
Bank Negara Malaysia (BNM) has kept the overnight policy rate unchanged at 2.75% during its third monetary policy review of 2026. The central bank said the decision reflects confidence in continued price stability and sustainable economic growth, supported by Malaysia’s resilient economy and broadly stable inflation, which remains cushioned by fuel subsidies and price controls on essential goods. However, BNM acknowledged rising uncertainties from the ongoing geopolitical conflict in the Middle East, which could affect both domestic growth and inflation through higher global commodity and energy prices. Despite this, it maintained its 2026 growth forecast of 4.0% to 5.0% and inflation outlook of 1.5% to 2.5%, noting that any upward pressure on prices is expected to remain contained due to domestic policy measures and stable demand conditions.
KPKT STUDYING OPTION TO PURCHASE TO ALLOW BUYERS TO WITHDRAW BEFORE SIGNING SPA, CURB ABANDONED HOUSING
The Edge, 08/05/2026
The Ministry of Housing and Local Government (KPKT) is studying the introduction of an Option to Purchase (OTP) clause under the proposed Real Property Development Bill to help reduce sick, delayed and abandoned housing projects in Malaysia. The proposed mechanism would allow both buyers and developers to withdraw before signing the Sale and Purchase Agreement (SPA), thereby lowering early financial and legal risks while enabling developers to better assess actual market demand and project feasibility. The initiative forms part of the Reformasi Perumahan Madani agenda aimed at modernising Malaysia’s housing regulatory framework and improving long-term industry sustainability. The ministry noted that the proposal could also help reduce unsold housing units and prevent developers from facing financial difficulties during construction. Malaysia’s property market recorded over RM240 billion in transactions in 2025 while KPKT has successfully revived more than 1,500 sick and abandoned housing projects worth over RM140 billion since late 2022. The ministry is also advancing digital initiatives such as e-SPA, TEDUH and HIMS, with the broader goal of achieving zero sick housing projects by 2030.
MALAYSIA, SINGAPORE FINE-TUNE RTS LINK CO-LOCATED FACILITY SOPS
The Edge, 08/05/2026
Malaysia and Singapore are continuing technical negotiations to coordinate standard operating procedures for the co-located Customs, Immigration and Quarantine (CIQ) facilities at the Bukit Chagar CIQ Complex for the Johor Bahru-Singapore RTS Link project. The discussions are progressing smoothly and reflect strong coordination, organisational discipline and mutual trust between both countries. Under the co-located arrangement, Singapore enforcement agencies will operate in Malaysia while Malaysian agencies will operate in Singapore’s Woodlands station, handling immigration checks, security, emergency response and operational coordination within the same facilities. Both countries are also addressing the necessary legal and regulatory frameworks to enable the arrangement, with Malaysia’s RTS Link Bill 2026 already passed and awaiting gazettement, while Singapore has also passed legislation to support cross-border operations. The RTS Link, scheduled to begin operations in January 2027, will connect Bukit Chagar in Johor Bahru to Woodlands North in Singapore with a travel time of about five minutes.
MAGNI-TECH ACQUIRES FREEHOLD BEACHFRONT LAND IN TANJONG BUNGAH, PENANG FOR RM133.33 MILLION
The Edge, 08/05/2026
Magni-Tech Industries Bhd, through its subsidiary Magni Land Sdn Bhd, has signed an agreement to acquire a freehold vacant beachfront land parcel in Tanjong Bungah, Penang for RM133.33 million, to be fully funded via internal cash reserves. The 4.72 acres site, which is currently vacant and held freehold with no restrictions, is located near established amenities including hotels, resorts and international schools, and is intended for future investment and potential property development, supporting Magni-Tech’s diversification into real estate. The purchase price was negotiated on a willing-buyer willing-seller basis and is significantly higher than the land’s historical book value, reflecting its strategic coastal location. Completion is targeted for 2Q26, with the deal falling below the threshold requiring shareholder approval.
S P SETIA TO UNVEIL BALINESE-INSPIRED DAMAIRA HOMES IN SEMENYIH
The Edge, 08/05/2026
S P Setia Bhd will launch Damaira, a Balinese-inspired freehold semi-detached housing enclave in Setia Mayuri, Semenyih with a gross development value of about RM87.93 million. The project comprises 54 two-storey semi-detached homes with land sizes between 3,200 and 3,920 sq ft, built-ups of 2,740 to 2,957 sq ft, and selling prices ranging from RM1.47 million to RM2.27 million. The development features green and sustainable elements such as solar PV readiness, EV charging points and rainwater harvesting, alongside access to amenities like Lamantara Park, nearby commercial hubs, schools, hospitals and major highways connecting Semenyih to surrounding areas.
TROPICANA METROPARK MARKS TOPPING-OFF MILESTONE FOR SOUTHPLACE 2 SHOPPES & RESIDENCES
The Edge, 06/05/2026
Tropicana Corp Bhd has marked the structural completion of SouthPlace 2 Shoppes & Residences within its Tropicana Metropark township in Subang Jaya, with the development on track for completion by March 2027 and recording about 80% take-up. The milestone follows the full sell-out of SouthPlace 1, reflecting continued strong buyer demand for the township. SouthPlace 2 features freehold serviced apartments ranging from 583 to 1,044 sq ft, with green and partially furnished units, and is directly connected to a retail podium housing tenants such as Mercato, Anytime Fitness and MyNews.
RIVERTREE STF SYNERGIES ACQUIRES TWO KL SERVICED APARTMENT LAND ASSETS FOR RM46.3MILLION, TARGETING COMBINED GDV OF RM654.8MILLION
The Edge, 06/05/2026
Rivertree STF Synergies Bhd (RSSB) is undertaking a major portfolio restructuring involving the acquisition of two serviced apartment development companies with a combined gross development value (GDV) of about RM654.8 million, alongside the disposal of its near-completed Laman Lentera project in Kuala Kubu Baharu. The acquisitions include Rivertree Landmark Sdn Bhd, which holds a KLCC-fringe freehold land parcel approved for a 28-storey serviced apartment project with a GDV of RM273.6 million, and Rivertree Signatures Sdn Bhd, which is developing Aisya KL East in Gombak with a GDV of RM381.2 million across serviced apartments, office suites and retail components near the future ECRL interchange.
GAGASAN NADI CERGAS SEALS RM134 MILLION EN-BLOC CONDO SALE
The Edge, 05/05/2026
Gagasan Nadi Cergas Bhd has secured an en-bloc sale of all 523 affordable housing units at its Idaman Casuarina 1 condominium project in City of Elmina, Shah Alam, to the Selangor Housing and Property Board (LPHS) for RM134.4 million. The units will be offered under the Selangor government’s Skim Smart Sewa programme, which allows eligible residents to rent homes while accumulating savings for future home ownership through a partial rental refund mechanism. Idaman Casuarina 1 forms part of Gagasan Nadi Cergas’ broader affordable housing expansion strategy, with the group planning to develop about 14,000 affordable homes across City of Elmina, Kwasa Damansara and Bandar Rimbayu over the next seven years, representing a combined gross development value of RM3.8 billion.
COLD STORAGE ANCHORS THE TENZ EMPORIUM, MARKING ITS FIRST KEDAH OUTLET
The Edge and The Star, 06/05/2026
Imperio Group has officially launched The Tenz Emporium in Alor Setar, with Cold Storage operated by GCH Retail (Malaysia) Sdn Bhd as its anchor tenant and marking the premium grocer’s first outlet in Kedah. The opening signals growing retail interest in secondary cities beyond major urban centres like the Klang Valley and Penang, with the launch officiated by local authorities and industry representatives. The Tenz Emporium forms part of The Tenz mixed-use development on the former Tai Kuan cinema site in Simpang Kuala, which aims to transform a heritage landmark into a walkable, integrated commercial hub. GCH Retail said the outlet reflects confidence in Alor Setar’s growing demand for premium retail offerings, with the development also set to support future components including residential units and a hotel within the broader master plan.
TOY MAKER MILOLO TO OPEN FIVE OUTLETS IN PENINSULAR MALAYSIA IN TWO YEARS
The Edge, 06/05/2026
Milolo Bhd plans to expand its retail footprint by opening five outlets across Peninsular Malaysia over the next two years, focusing on major malls such as Ombak KLCC, Sunway Velocity, and Seremban Gateway 2, while also targeting Penang and the East Coast in its next phase of growth. The company is also evaluating expansion into Sabah and Sarawak, though logistics challenges remain due to the fast-moving nature of its blind box products. Regionally, Milolo is targeting overseas markets such as Thailand, Indonesia, China and Singapore within two to three years, subject to regulatory and cultural considerations, with a preference for direct retail operations where possible. The designer toy company, which recently debuted on Bursa Malaysia’s LEAP Market, is benefiting from strong demand for its products such as Labubu and Twinkle Twinkle, and expects continued growth supported by an expanding collector base. Despite global geopolitical uncertainties, the company said any impact is minimal and mainly related to shipping delays, as it adopts frequent direct shipments rather than container-based logistics.
118 MALL SLATED TO OPEN DOORS IN AUGUST WITHIN MERDEKA 118 PRECINCT
The Edge, 06/05/2026
118 Mall is on track to open in August as a major retail and lifestyle destination at the base of Merdeka 118, the world’s second tallest building. Owned and managed by PNB Merdeka Ventures Sdn Bhd, the mall has already secured over 70% tenant occupancy, with many retailers currently undergoing fit-outs ahead of opening. A key highlight is the Malaysian Artisan District, a curated 80,000 sq ft space featuring local food, crafts and creative concepts, including the Makanizm Food Hall alongside well-known F&B brands such as Kenny Hills Cafe, ZUS Coffee, Oriental Kopi and Serai. The mall will also feature a strong retail mix of fashion, lifestyle and anchor tenants including Village Grocer and SOGO118, alongside international brands. Designed as part of the wider Merdeka 118 precinct, which includes offices, hotels, residences and public spaces, the mall is expected to attract about 22 million visitors in its first year and serve as a key lifestyle hub supporting Kuala Lumpur’s tourism and retail landscape.
ZELAN UNIT TO TRANSFER TWO WISMA ZELAN OFFICE SUITES TO MMC ENGINEERING SDN BHD TO SETTLE RM5.22 MILLION DEBT
The Edge, 08/05/2026
Zelan Bhd’s wholly-owned subsidiary, Zelan Holdings (M) Sdn Bhd, has proposed settling outstanding debts of approximately RM5.22 million owed to MMC Engineering Sdn Bhd through the transfer of two office units at Wisma Zelan in Bandar Tun Razak, Kuala Lumpur. The two leasehold strata office units, valued at RM2.5 million each, will be transferred to MMC Engineering as full settlement for RM5 million of the debt, while the remaining balance of about RM219,000 will be offset through monthly rental payments currently paid by MMC Engineering.
MALAYSIA HAS A CERTIFIED OFFICE SUPPLY PROBLEM — AND RM342 BILLION IN DIGITAL INVESTMENTS IS ABOUT TO EXPOSE IT
The Edge, 04/05/2026
Malaysia is emerging as a major digital investment destination in Southeast Asia, having secured RM342.58 billion in approved digital investments and projected to create over 114,000 jobs, mostly knowledge-worker roles. Malaysia lacks sufficient certified, digitally-enabled office space to fully support this growth. Although demand from digital and multinational companies remains strong, only 35% of Malaysia’s purpose-built office stock is MD-certified and just 21% of Klang Valley office space is green-certified, limiting options for occupiers seeking ESG-compliant, tech-ready premises. The report notes that sectors such as AI, fintech and GBS/KPO increasingly prefer high-quality certified offices with reliable infrastructure and sustainability features, creating a growing divide between modern certified buildings and older office stock. In response, the Malaysia Digital Location Recognition (MDLR) framework was introduced this year to encourage more digitally certified office developments, with Merdeka 118 becoming the first MD Nexus-certified building. The report concludes that this shortage presents a significant opportunity for developers and REITs to retrofit or develop new tech-ready and sustainable office assets to capture rising demand from Malaysia’s expanding digital economy.
CAPITAL A IN TALKS WITH MAJOR HOTEL CHAIN TO EXTEND AIRASIA BRAND INTO HOSPITALITY
The Edge, 05/05/2026
Capital A Bhd is in discussions with a major hotel chain to expand the AirAsia brand into the hospitality sector, as part of its strategy under AirAsia Next. The proposed venture is expected to be structured under AirAsia Next, which currently manages the AirAsia, AirAsia MOVE and Santan brands, although further details have not been disclosed. AirAsia Next is also finalising agreements to manage additional brands within the group.
UKAS TO AWARD MMC CORP-LED CONSORTIUM JB ART PROJECT
The Edge, 05/05/2026
Johor Bahru rapid transit system project is expected to be awarded to the MMC Corp Bhd–DOM Industries Sdn Bhd consortium, with the Public Private Partnership Unit (Ukas) reportedly set to issue a letter of intent for the project. The proposed project, believed to involve an elevated autonomous rapid transit (eART) or automated people mover (APM) system similar to Singapore’s Sengkang and Punggol LRT lines, has been contested for over a year by several consortiums including WCT Holdings-Lion Pacific and YTL Corp-SIPP Rail.
The MMC-DOM consortium also includes Nylex Malaysia Bhd and Thailand’s BTS Group Holdings, which will provide technical expertise. Estimated to cost nearly RM7 billion under a public-private partnership model, the transit system is seen as a critical infrastructure project to ease congestion in Johor Bahru and improve passenger dispersal ahead of the Johor Bahru-Singapore RTS Link’s operations next year, which is expected to handle up to 10,000 passengers per hour in each direction.
MAJESTIC GEN’S GEN SPHERE IN JB ACHIEVES 100% TAKE-UP
The Edge and The Star, 08/05/2026
Majestic Gen Bhd’s Gen Sphere freehold serviced apartment project in Johor has achieved a full 100% take-up since its launch in July 2025. The development carries a gross development value of RM837 million and is located on 1.25 acres in Johor Bahru city centre, comprising 996 units with built-ups ranging from 459 to 755 sq. ft. and starting prices from RM609,000. The strong demand reflects buyer confidence in the project’s strategic location, just 440 metres from JB Sentral and 700 metres from the Bukit Chagar RTS Link Station, which provides convenient cross-border connectivity to Singapore.
CORONADE PROPERTIES BREAKS GROUND ON CORONATION SQUARE MALL IN JOHOR BAHRU
The Edge, 07/05/2026
Coronade Properties Sdn Bhd has officially launched Phase 2 of its Coronation Square integrated development in Johor with the groundbreaking of Coronation Square Mall, which is set to become the largest retail mall in Johor Bahru city centre. CapitaLand Investment (CLI) has been appointed as the retail adviser for the mall, while The Ascott Ltd will manage the hotel component under the Ascott brand. The development also includes two residential blocks and is strategically located within the Johor-Singapore Special Economic Zone (JS-SEZ), with direct connectivity to the upcoming Johor Bahru-Singapore RTS Link via an air-conditioned pedestrian bridge.
E&O COMPLETES RM691 MILLION THE MEG IN ANDAMAN ISLAND, PENANG
The Edge, 08/05/2026
Eastern & Oriental Bhd (E&O) has completed The Meg, the first residential development within its Andaman Island township in Penang, marking a significant milestone in its vision to create a sustainable waterfront community. Launched in 2022 with a gross development value of RM691 million, The Meg comprises 1,020 freehold serviced apartment units and 14 retail lots, achieving full take-up shortly after launch due to strong market demand. Andaman Island is targeted to house around 30,000 residents by 2030 under its 30-year master plan. The township integrates environmental sustainability with modern urban living, with its Phase 1 master plan becoming Malaysia’s first township master plan to receive GreenRE Provisional Platinum Certification in 2023. E&O currently has six ongoing developments within Andaman Island, including AVÉA, Maris and The Lume, while the recently completed Gurney Bridge also received recognition from the Malaysia Book of Records as the “Widest Box Girder Bridge in Malaysia”.
PDC, MAHB APPROVE FORMATION OF JVCO TO IMPLEMENT PENANG INTERNATIONAL LOGISTICS AEROPARK PROJECT
The Edge, 08/05/2026
The Penang Development Corporation (PDC) and Malaysia Airports Holdings Bhd (MAHB) have approved the establishment of a joint venture company, Syarikat Usahasama PILA Sdn Bhd, to develop the Penang International Logistics Aeropark (PILA), a strategic project aimed at strengthening Penang’s logistics and industrial ecosystem. The joint venture agreement was signed on 13 April, with planning approval for the master plan already obtained and site earthworks currently underway. The first phase of the project will involve the construction of a new free commercial zone-class air cargo warehouse expected to be operational by 2029, supporting an additional cargo handling capacity of up to 100,000 tonnes annually. Over the longer term, PILA is projected to handle up to 500,000 tonnes of cargo per year by 2050 with more than two million sq. ft. of warehouse space.
