SOUTHEAST ASIA CONSTRUCTION14 Feb 2025
Malaysia’s MRT Corp and Sunway to build mixed-use development in Bukit Chagar, Johor Bahru

MRT Corporation (MRT Corp) and Sunway Integrated Properties Sdn Bhd, a wholly owned subsidiary of Sunway Berhad, have signed an agreement to jointly develop an integrated mixed-use development adjacent to the Bukit Chagar RTS Link Station in Johor Bahru, Malaysia.

The Bukit Chagar integrated mixed-use development, spanning 4.23 acres of prime land, will be fully integrated and seamlessly linked with the ICQ Complex and Bukit Chagar RTS Station, which directly connects Johor Bahru and Woodlands North Station in Singapore.

The new development will feature:

  • RTS multi-storey car park – featuring 1,550 car parks and 1,015 motorbike bays, ensuring ample parking for RTS commuters and visitors alike.  This is a key infrastructure addition in anticipation of the RTS Link’s operations. 

  • High-rise residences – sitting atop retail and commercial areas for professionals commuting between Johor Bahru and Singapore.

  • Retail mall and educational institutions – combining shopping, dining and educational facilities in a single dynamic hub.

  • Health and wellness hub – providing access to quality healthcare, with dedicated facilities to support community well-being and to potentially promote medical tourism.

  • Hospitality component – offering a range of accommodations and meeting spaces for tourists and business travellers alike that will position Bukit Chagar as a vibrant economic hub.

Construction of the project is scheduled to commence in March 2025, with the first phase of the multi-storey park and ride facility, featuring an estimated 850 car park bays and 1,015 motorcycle parking spaces, targeted for public opening by 30 November 2026.

Speaking at the media briefing, Minister of Transport Malaysia YB Anthony Loke Siew Fook emphasised that the Bukit Chagar integrated development is a key pillar of Malaysia’s broader strategy to enhance public transport connectivity, reduce congestion and drive urban transformation. He stressed that improved mobility must be complemented by liveable, well-planned urban spaces that support the daily lives of the ‘rakyat’ [people] and reaffirmed that this development is designed to achieve exactly that.

He further commended MRT Corp’s Rail Plus Property model, which ensures that investments in public transportation generate sustainable economic benefits. By reducing reliance on government funding and unlocking new revenue streams, the model strengthens Malaysia’s infrastructure development strategy.

“The Bukit Chagar integrated mixed-use development represents a fundamental shift for MRT Corp as we integrate large-scale property rejuvenation alongside our rail infrastructure development,” said Datuk Mohd Zarif Hashim, CEO of MRT Corp. “Through the Rail Plus Property model, we are optimising land use to create a sustainable, transit-oriented ecosystem that ensures the long-term sustainability of this development while enhancing the mobility of people.”

“Globally, cities have successfully regenerated themselves by integrating transit infrastructure into their urban planning, and the Bukit Chagar integrated mixed-use development embodies this very concept. Its strategic location next to the country’s first cross-border metro rail project positions it well to capitalise on cross-border movement, attracting businesses, investments and talent,” he explained.

“Our approach ensures that we are not only enhancing mobility, but also advancing the government’s national infrastructure aspirations by driving urban transformation and economic expansion. As Malaysia continues to expand its transit networks, Bukit Chagar will serve as a blueprint for how we can modernise and rejuvenate city spaces around transit hubs, ensuring that infrastructure investments continue to deliver long-term value for generations to come.”

Sunway Group founder and chairman Tan Sri Dato’ Seri Sir Dr. Jeffrey Cheah KBE AO said, “We look forward to this public-private partnership with MRT Corp in developing one of the first Rail Plus Property projects in Malaysia. This integrated mixed-used development with a gross development value of more than RM2.6 billion will serve as a catalyst for economic growth across the Greater Johor Bahru area.

“This development solidifies Sunway’s presence at the First Link (Causeway) and the Second Link. It will also complement our Johor development portfolio alongside our 2,000-acre Sunway City Iskandar Puteri, which is a five-minute drive from the Second Link and modelled after Sunway City Kuala Lumpur, Malaysia’s first integrated, green and sustainable township.

“As a Malaysian organisation committed to nation-building with our unique build-own-operate business model, I am confident that this strategic partnership will transform Johor Bahru into an international gateway city, contributing to the economic prosperity of Malaysia and Singapore.”

All images and video: MRT Corp/Sunway