Sunway Group to Develop Mixed Use Project in Johor

Malaysia’s Sunway Group and the Mass Rapid Transit Corporation Sdn Bhd on Thursday signed a master agreement for a mixed-use development worth more than $786 million in Johor.

The transit-oriented project, adjacent to the Bukit Chargar station under the Johor Bahru–Singapore Rapid Transit System (RTS), involves the development of four residential and commercial towers, Sunway, which will also get the right to build a shopping mall, said.

According to local media reports, under the agreement, the state-owned RTS project owner will receive a payment of $101.08 million as development rights value subject to adjustments. Spanning 4.23 acres, the transit-oriented development will be seamlessly linked to the Bukit Chagar RTS Station, which connects Johor Baru to Singapore’s Woodlands North.

MRT Corp CEO Mohd Zarif Hashim said that the Bukit Chagar integrated mixed-use development represents a fundamental shift as the corporation was integrating large-scale property rejuvenation alongside their rail infrastructure development.

Malaysia’s Transport Minister Anthony Loke Siew Fook, MRT Corp chairman Tan Sri Bashir Ahmad and Sunway Group Founder Tan Sri Dr Jeffrey Cheah, were among the dignitaries who witnessed the signing of the master agreement between the two parties.

Emphasising the need for liveable, well-planned spaces that complement improved mobility, Loke said that the Bukit Chagar development is a key pillar of Malaysia’s strategy to enhance public transport connectivity, reduce congestion, and drive urban transformation.

A central feature is the RTS Multi-Storey Car Park, catering to cross-border commuters with 1,550 car and 1,015 motorcycle bays. Other components include high-rise residences, a retail mall, an educational hub, a health and wellness centre, and a hospitality component to boost tourism and business travel.

Spurs Economic Growth

Cheah called the venture a catalyst for Johor Baru’s economic growth, complementing the Sunway Group’s nearby 2,000-acre Sunway City Iskandar Puteri. “This partnership will transform Johor Baru into an international gateway city,” he said.

Construction is scheduled to begin next month with the first phase, -the multi-storey park-and-ride facility, which will have 850 car park bays and 1,015 motorcycle parking spaces, is set to open by 30 November 2026, ahead of the RTS Link’s targeted launch in December 2026. The whole project is slated for completion in 2036.

Loke also confirmed that the Elevated Autonomous Rapid Transit (E-ART) has emerged as the preferred system to complement the Johor Baru-Singapore Rapid Transit System (RTS) link. The Johor state government favours E-ART over light rail transit (LRT) due to its lower cost and faster implementation.

The project is also expected to feature educational institutions, a ‘health and wellness’ hub, and a hospitality component that includes accommodations and meeting spaces.

“This development solidifies Sunway’s presence at the Causeway and the Second Link. “It will also complement our Johor development portfolio,” Cheah added.