KUALA LUMPUR (July 22): Mah Sing Group Bhd (KL:MAHSING) is aiming to increase the contribution of industrial developments to its sales as it seeks to capitalise on growing high-tech manufacturing interest in the Asean region amid shifting global supply chains.
Following the group’s extraordinary general meeting on Wednesday, chief financial officer Teong Sze Howe told The Edge that residential projects currently account for almost all of Mah Sing’s sales contribution, but the group expects industrial developments to make up 20% to 30% of its sales going forward.
He said this would bring Mah Sing closer to the sales mix of some larger property players with greater exposure to industrial assets, although the group does not expect industrial projects to reach an equal standing with its residential segment.
On Wednesday, Mah Sing has received the green light from shareholders for the approval of 419.17 acres of freehold land acquisition from Kuala Lumpur Kepong Bhd’s (KL:KLK) unit Aura Muhibah Sdn Bhd to pave the way for the development of a RM2.26 billion gross development value (GDV) industrial parking within the Johor-Singapore Special Economic Zone.
Mah Sing chief operating officer Chau Chun Hoo told The Edge that the group has also seen increased interest from manufacturers looking to expand or relocate operations into the Asean region, citing geopolitical uncertainties and factors such as political stability and cost considerations.
“There are more and more inquiries coming to this part of the world for the political stability in terms of a safe environment to do business and more predictable cost structure, that is the main process driving them to come to this area, especially Johor,” said Chau.
The MS Industrial Park @ Kulai will focus on housing high-tech manufacturing players including electrical and electronics (E&E), food and beverage, maintenance repair and overhaul (MRO), semiconductor, pharmaceutical and artificial intelligence (AI)-related sectors.
On Mah Sing’s MS Industrial Park @ Kulai, Chau said the group expects the first phase, comprising ready-built factories, to be launched in the fourth quarter of 2026.
The development will be completed in five phases over an estimated six to eight years, he said.
Chau added that the Johor state government has also been supportive in facilitating approvals for the project, with authorities encouraging the group to expedite submissions to align the industrial park’s marketing efforts with Johor’s investment promotion initiatives.
The industrial push from property developers in Malaysia comes as the companies navigate a more challenging residential market environment, with higher costs and an uncertain economic outlook potentially affecting new launches.
Shares of Mah Sing were flat at 94 sen at the time of writing on Wednesday, giving a market value of RM2.41 billion.