Sunway’s southern play: Founder Jeffrey Cheah eyes Johor for next phase of growth
With a gross development value of more than RM30 billion, Sunway City Iskandar Puteri is expected to be completed over the next 20 years
[KUALA LUMPUR] What was once a desolate mining wasteland in Kuala Lumpur is now Sunway City – a bustling integrated township complete with homes, schools, malls, a hospital and theme park.
Behind this township, which has become the centrepiece of a RM50 billion (S$15.4 billion) empire, is Jeffrey Cheah, who founded Sunway Group in 1974.
Cheah started the business as a tin-mining company and gradually expanded into property development, turning 800 acres (324 hectares) of abandoned mining land into a major urban hub in Kuala Lumpur that houses more than 200,000 people.
He recalled that in the early days, banks were reluctant to lend him funds; and friends even thought his vision was “crazy”.
“(The banks) could not comprehend how anyone with long hair and without any track record as a developer would even think of such an endeavour,” the group’s 80-year-old chairman told The Business Times. Cheah persisted. The development drew praise from former Singapore prime minister Lee Kuan Yew when he visited Sunway City in 2004. “He told me, ‘You have transformed a wasteland into a wonderland’.”
Beyond property development, Sunway Group has evolved into a diversified conglomerate. Its three listed entities – Sunway Berhad, Sunway Construction and Sunway Real Estate Investment Trust – have a combined market capitalisation of more than RM50 billion. The group operates 13 business divisions spanning construction, healthcare, hospitality, education and more.
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Expanding domestically
Having had a successful run in the Malaysian capital, Sunway is now expanding its footprint, with ongoing projects in Johor Bahru where it is developing Sunway City Iskandar Puteri which spans 2,000 acres (809 ha). This project has a gross development value of more than RM30 billion. More than 30 per cent of the project has ready been developed, said Cheah, who hopes to complete the rest over the next 20 years. He said several new developments will further elevate the city’s appeal as a regional hub of commerce, tourism and technology.
One such project is a free commercial zone, comprising an integrated warehouse and logistics facilities, developed with Singapore-based German company Equalbase. The first of four phases, spanning five million square feet, will be operational in the first quarter of 2026 with three warehouses – two are already leased to international logistics groups Schenker and GXO – and is projected to generate RM8 billion in gross development value and create 13,000 jobs.
Given its proximity to the Malaysia-Singapore Second Link Bridge, the development will become a “vital logistics gateway, enabling businesses to optimise regional distribution while leveraging Johor’s robust industrial base and Singapore’s extensive global connectivity”. The 4.5 km-long Sir Jeffrey Cheah Circuit, slated to open in the first quarter of 2026, is expected to help establish Iskandar township as the hub of motoring tourism in the region.
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A new Sunway Medical Centre, with 300 beds and specialised services, is planned in Johor. The group also intends to introduce its senior living brand, Sunway Sanctuary, following the launch of its first residence in Kuala Lumpur in 2023, as Sunway seeks to tap the growing demand for integrated senior living options.
These upcoming projects build on Sunway’s existing developments in Iskandar Puteri, which include residential precincts, schools, office, retail and leisure components.
“But that’s only the tipping point… so now the intention is to double up because the Johor-Singapore Special Economic Zone (JS-SEZ) has moved, and people are slowly coming over,” executive deputy chair Sarena Cheah told BT. “We’re seeing a lot of increased interest, that’s why we are now expanding – starting with the retail component because a lot of Singaporeans like to hop over to shop.”
Jeffrey Cheah added: “Take it from me that five years from now, all Singaporeans will know Sunway City Iskandar.”
Sunway is also expanding into Johor Bahru, with an eye on it as a gateway to Singapore. “The upcoming Rapid Transit System (RTS) link will further enhance connectivity between Singapore and Johor, generating significant economic spillover impact for the surrounding communities,” said Jeffrey Cheah.
The group is partnering MRT Corp to develop an integrated mixed-use project, valued at more than RM3 billion, next to the RTS station at Bukit Chagar.
The group also recently launched Sunway Majestic, a 46-storey freehold condominium located close to both the RTS station and Woodlands Checkpoint.
Despite these ongoing projects, Jeffrey Cheah noted that establishing a foothold in Johor is still a work in progress.
“Building a township from scratch requires substantial long-term investment and close coordination with stakeholders – including federal agencies and local authorities – to ensure that infrastructure, utilities and amenities are properly in place.”
He added that the group is applying its experience from Kuala Lumpur to develop Sunway City Iskandar Puteri, which is set to become the centrepiece of Malaysia’s southern corridor and a key driver of Johor’s economic growth.
Firm takings
The ongoing developments in Johor Bahru form part of Sunway’s long-term growth strategy.
Past economic crises – the recession of 1985/86 and the Asian financial crisis in 1997/98 – taught Jeffrey Cheah to balance ambition with financial discipline. “Surviving those storms, I learned to be realistic and pragmatic as an entrepreneur,” he said.
“While we are constantly looking for opportunities to grow and expand our business ventures, we are also very prudent in how we manage our finances… We firmly believe that we can all do well by doing good, and remain steadfast in our commitment towards the sustainable development agenda.”
This strategy is bearing fruit. In FY2024, the group’s net profit rose 56.3 per cent on year to RM1.2 billion, and revenue was 28.5 per cent higher year on year at RM7.9 billion. In the first half ended Jun 30, 2025, net profit was up 5 per cent on year to RM463.5 million, while revenue grew 64 per cent year on year to RM4.9 billion.
Sunway expects full-year results to maintain last year’s strong performance, driven by robust contributions across its core business segments – which are property development, property investment, construction and healthcare.
“I have never been more optimistic about Malaysia and the abundance of opportunities available here and in the region. This optimism is based on facts, not speculation,” said Jeffrey Cheah.
“The JS-SEZ will continue to uplift housing, healthcare, education and retail around transit. We can look forward to a more comprehensive development of Sunway City Iskandar Puteri, along with an expanded footprint in Singapore and neighbouring countries.”
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