Malaysia’s Sunway, MRT Corp sign deal for RM2.6 billion mixed-use development in Johor Bahru

[KUALA LUMPUR] A new mixed-use development with an estimated gross development value of RM2.6 billion (S$787 million) will be built in Bukit Chagar in Johor Bahru.

The project – which will have residential, retail, hospitality, healthcare, and education components – will be integrated with the upcoming Johor Bahru-Singapore Rapid Transit System (RTS) Link, which is slated to be completed by the end of 2026.

Two Malaysian companies – Mass Rapid Transit Corp (MRT Corp) and Sunway Group – signed a partnership agreement in Johor Bahru on Thursday (Feb 13) to develop a 1.7-hectare prime plot near the Bukit Chagar RTS Link Station.

Construction of the development is expected to take eight years, or until 2033, after the 4 km RTS Link begins service in early 2027.

Aside from its residential, commercial and hospitality components, the project will also have a multi-storey park-and-ride facility with parking spaces for 1,550 cars and 1,015 motorcycles.

The project promises to be a connectivity hub. Besides being integrated with the Bukit Chagar RTS Link station, it will also be linked to Johor Bahru’s immigration complex and the KTM electric-train service, city buses and a future intra-city rail system.

A catalyst to JS-SEZ

Malaysian Transport Minister Anthony Loke called the as-yet-unnamed development as a key pillar of the country’s strategy to enhance public-transport connectivity, reduce congestion and drive urban transformation.

“The integrated development at Bukit Chagar will drive Johor’s progress, complementing major projects such as the Johor-Singapore Special Economic Zone (JS-SEZ). These initiatives position Johor as a leading Malaysian state through strategic economic growth,” he said at the signing ceremony.

Mohd Zarif Hashim, the chief executive officer of MRT Corp, said the partnership with Sunway marks a fundamental shift for the company towards integrating a large-scale property project to rejuvenate rail-infrastructure development, which could optimise the land use.

MRT Corp is a Malaysian government-owned developer and asset owner of urban rail infrastructure. It oversees construction, contracts and quality for the Klang Valley MRT and the RTS Link projects. 

Sunway Group founder Jeffrey Cheah described the project as a “transformational development” that would turn Johor Bahru into an international gateway city.

Beyond catalysing Johor Bahru’s economic growth, the development will also complement Sunway’s 2,000-acre Sunway City Iskandar Puteri development, which is about a 30-minute drive away.

Work on the mixed-use development starts in March; the multi-storey park-and-ride facility, developed under the first phase, is slated to open by Nov 30, 2026, ahead of the RTS Link’s targeted launch by December 2026.

The civil infrastructure works of RTS Link are over 80 per cent complete, say MRT Corp and Singapore’s Land Transport Authority.

When operational, the shuttle service will transport 10,000 people an hour in each direction – between Woodlands North in Singapore and Bukit Chagar in Johor Bahru. It is expected to reduce the cross-border travel time to 15 minutes from the current 1.5 hours during peak periods.

Other than cross-border travel, Johor’s state government is also considering the development of an Elevated Autonomous Rapid Transit (E-ART) as an intra-city rail system to complement RTS Link down the road.

Unlike the MRT or light rapid transit system, E-ART will run on non-dedicated tracks, which allow buses to share lanes, making it a more flexible and cost-effective solution.

Loke said the government has invited companies to submit proposals for this project, but the development timeline has yet to be decided.

E-ART is a trackless, rubber-wheeled transit system that operates autonomously on dedicated or guided pathways with driverless tram-like coaches, offering a modern and efficient alternative for urban mobility.