This article first appeared in City & Country, The Edge Malaysia Weekly on June 1, 2026 - June 7, 2026

Setia Awan Group is entering a more ambitious growth phase in 2026, underpinned by a broader development pipeline that includes the revival of a long-abandoned residential project in Selayang, Selangor, and its first industrial property venture in Tanjong Malim, Perak.

The Perak-based group is targeting RM1.1 billion to RM1.2 billion in sales this year, up from about RM700 million in 2025, as it moves from a stabilisation phase into a more execution-driven expansion cycle, according to executive director Ng Teck Hua.

He says Setia Awan spent the past year largely on consolidation, delivery and preparing for its next growth stage.

“Last year was about stabilising our projects and ensuring delivery. This year, we plan to take up greater things and [focus on] accelerating execution and scaling up,” Ng explains.

He says the group’s operational focus last year was structured around delivery and reputation building, particularly in the mid-market segment.

“Consistency in delivery has become part of our positioning. Once the market recognises that you deliver on time and ahead of schedule, it changes how both buyers and financiers perceive you.

“That perception shift has played a role in improving both buyer confidence and banking relationships, particularly for projects with higher density and transit-oriented characteristics.”

To achieve its sales target, Setia Awan has lined up five launches with a total gross development value (GDV) of more than RM2.5 billion. All are scheduled to be officially launched in the second half of 2026.

Apart from the Selayang and Tanjong Malim projects, it has also planned launches in Batu Berendam, Melaka (113 landed homes; GDV: RM46.9 million); Beverly Hills, Ampang (1,272 high-rise units; GDV: RM585 million); as well as Kuala Pilah, Negeri Sembilan (552 landed homes; GDV: RM115.3 million).

The company will also develop shoplots on a five-acre land at Klebang Cove, Melaka, which it will keep for recurring income.

For Ng, one of the most exciting developments for Setia Awan this year is its entry into Selayang through the revival of a long-abandoned development site.

Known as Sapphire Springs, the mixed-use project adjacent to Selayang Hot Spring has a total GDV of RM1 billion.  The seven-acre development will have more than 3,000 high-rise units over three phases and is scheduled to be officially launched in the next quarter.

Ng says the site was dormant for more than a decade, with partially completed infrastructure that had become an eyesore and planning challenge for the surrounding area. He describes the project as both a redevelopment opportunity and a civic responsibility.

“The first phase, with about 200 units in one block, is important for us because the first thing we need to do is to hand over that one block … the buyers have been waiting for many years. Secondly, it’s an eyesore for the Selayang area. In fact, the council also encouraged us to start as soon as possible,” he says.

Subsequent phases will have new residential blocks. Refinements to the design are still being made based on feedback from the authorities, agents and early market testing. Ng says the group is avoiding a rigid master-plan approach at this stage.

Setia Awan is also making its entry into industrial property development, tapping into the growing asset class driven by manufacturing and logistics demand, with a 447-acre land parcel in Tanjong Malim.

The site is located next to Proton City and sits within an expanding automotive and manufacturing ecosystem anchored by Geely, which has been strengthening its regional industrial footprint through its Malaysian operations, Ng explains.

The as-yet unnamed project is targeted for launch next quarter, subject to approvals. It has a GDV of RM690.5 million.

Ng says the industrial venture represents a measured experiment rather than a structural shift in the group’s core business.

“This is our first industrial project. We are not rushing into this segment. The objective is to understand demand, pricing dynamics and execution requirements before we scale further.”

The development will adopt a hybrid structure, offering industrial land parcels for investors and manufacturers, semi-built factory solutions for small and medium-size enterprises (SMEs), as well as potential ancillary residential components to support workforce demand.

The group is also retaining a second adjacent parcel of about 200 acres that will only be activated if the initial phase gains sufficient market traction.

Setia Awan’s entry into industrial property comes amid a broader structural shift in Malaysia’s industrial landscape, driven by supply chain diversification, foreign direct investment and growing demand for logistics infrastructure.

Ng notes that demand for industrial land has been particularly strong in established and emerging corridors such as Penang, Kedah, Banting and northern Selangor.

“We have studied multiple industrial corridors. The demand is very real, particularly from supporting industries and SMEs that want proximity to anchor manufacturers,” he says, adding that there is also growing demand for worker accommodation and integrated township planning within industrial zones.

Despite its diversification into industrial real estate, Ng says Setia Awan’s business continues to be anchored by affordable housing, which remains the largest contributor to its earnings and pipeline visibility.

He says the group defines affordable housing broadly as units priced between RM200,000 and RM600,000, depending on size, configuration and location. Structural demand for affordable housing remains intact, he believes, particularly in urban and transit-linked locations.

“The fundamental issue in Malaysia is still affordability. That is where our focus remains.”

Its recent transit-oriented developments in Ampang and Shah Alam have demonstrated strong absorption, with several projects achieving near-full take-up within months of launch.

Setia Awan is a strong believer in transit-oriented developments (TODs). Its TOD strategy has evolved to also include fully integrated lifestyle environments.

Ng says the evolution reflects changing buyer expectations. “Today’s buyers are not just looking for homes. They are looking for convenience, lifestyle and connectivity. That is what TODs allow us to deliver.”

For example, in Astrum Shah Alam, the group is developing a boulevard-style commercial component designed to activate the surrounding ­urban space and create a self-sustaining township ecosystem.

The development includes retail components featuring food and beverage operators, convenience stores and essential services. Anchor tenants such as McDonald’s and 7-Eleven have already been secured.

The group is also managing tenant mix to ensure long-term vibrancy and prevent commercial fragmentation.

As the group grows its pipeline, Ng emphasises that cost discipline remains critical, particularly in the current environment of rising construction and material costs.

Setia Awan’s approach entails tighter design optimisation, direct procurement of selected materials and labour, and closer negotiation with contractors.

In some cases, the group has opted to source labour independently to reduce dependency on contractors’ bundled pricing structures.

“We need to be very disciplined on cost. Every efficiency we gain in design and procurement translates directly into affordability for buyers,” he says.

The group does not have a fully integrated construction arm because of operational complexity and labour management challenges, particularly in relation to foreign workers. Instead, it adopts an asset-light execution model while retaining tight project control.

As for its land bank, Ng says ongoing replenishment efforts focus primarily on the Klang Valley as it continues to have the deepest demand pool.

“This remains our core market. The density, connectivity and long-term demand fundamentals are strongest here.”

While the group occasionally evaluates opportunities outside Selangor, expansion decisions remain highly selective and opportunistic.

Setia Awan’s ongoing projects — all in Selangor — include FonaVista Residences, Ampang (condominium); Astrum Ampang (mixed-use); Astrum Shah Alam (mixed-use); as well as Sena Residen­ces, Shah Alam (mixed-use).

Its 2026 strategy reflects a calibrated diversification rather than a departure from its core business. Ng says the group’s priority remains disciplined execution over rapid expansion.

“We are not expanding for the sake of scale. We are focused on executing well, then scaling what works.”

If successful, the strategy could gradually reposition Setia Awan from a mid-sized affordable-housing developer into a more diversified property group with exposure across residential, TOD and industrial real estate in Malaysia’s key growth corridors.

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