Zerin Properties chief executive officer Previn Singhe
PETALING JAYA: The government’s pro-environmental initiatives under the recently announced 13th Malaysia Plan (13MP) is expected to bode well for the local real estate sector, say property consultants.
Zerin Properties chief executive officer Previn Singhe said “the most defining feature of the 13MP is its green ambition”.
“The target of 35% renewable energy by 2030 and the exploration of nuclear energy signal a decisive pivot toward low-carbon, sustainable growth,” he told StarBiz.
“For real estate, this translates into heightened demand for green-certified buildings, smart energy systems and low-carbon industrial clusters – the kinds of assets that institutional investors and environmental and social governance (ESG)-focused real estate investment trusts (REITs) increasingly favour,” Previn added.
He also said the inclusion of nuclear energy as part of Malaysia’s long-term clean energy mix is particularly significant.
“It provides stable, large-scale baseload energy to support smart cities and industrial zones, complements renewable sources like solar and hydrogen, and enhances the long-term value and viability of green-certified real estate.
“Together, these moves send a strong signal to ESG-conscious investors about Malaysia’s commitment to sustainability and resilience in its built environment.”
Olive Tree Property Consultants founder and chief executive officer Samuel Tan noted that there is a growing awareness of environmental issues that is prompting a shift towards sustainable and eco-friendly housing solutions.
“Developers are increasingly incorporating green technologies, energy-efficient designs, and sustainable materials into their projects to meet the demands of environmentally conscious buyers.”
TA Research in a recent report said developers continue to face stronger compliance requirements, including mandatory adherence to newer (sustainability-focused) construction standards and the Green Building Index.
“While these are laudable in terms of sustainability and quality control, they may increase development costs, especially for those without internal compliance infrastructure or economies of scale.”
Additionally, Previn said the 13MP’s emphasis on improving the country’s tourism and hospitality industry will also have a spillover effect on the local real estate sector.
“The 13MP’s focus on revitalising the tourism sector includes upgrading infrastructure and connectivity, promoting eco, cultural and community-based tourism, and enhancing tourism facilities to ensure long-term competitiveness and sustainability.
“Special Tourism Investment Zones in Johor, Melaka, Negri Sembilan and Sarawak, along with Visit Malaysia 2026, will be key drivers in boosting arrivals and unlocking opportunities for resorts, themed attractions, eco-tourism projects and heritage-based trails.”
Previn said a revitalised tourism sector will also provide strong tailwinds for the consumer economy, particularly retail and food and beverage, as higher tourist arrivals, both local and international, are expected to lift footfall in malls, high streets and convenience outlets.
“This growth trajectory will benefit REITs with exposure to retail and hospitality assets, while also spurring collaboration between stakeholders to create integrated tourism packages and experiences that enhance Malaysia’s positioning as a regional tourism hub.”
Moreover, Previn acknowledged that the 13MP has allocated RM67bil for education and RM40bil for healthcare.
“This signals a strong push to enhance social infrastructure. These investments will drive demand for new hospitals, medical hubs, vertical schools and training centres, particularly in urban and underserved areas.”
Previn said such large-scale allocations create opportunities for private-public partnership-led developments, where private developers can bring innovation and efficiency to public service delivery by collaborating with the government to deliver modern, future-ready healthcare and education facilities.
“This not only improves public service outcomes but also supports the growth of surrounding mixed-use developments by increasing demand for residential, retail and hospitality spaces tied to these social infrastructure hubs.”
Previn also said the 13MP targets transformative infrastructure, smart cities and connected urban growth.
“The 13MP allocates RM430bil in development expenditure, with RM227bil directed toward infrastructure, public transport, disaster mitigation and affordable housing – investments that will directly reshape property market dynamics.
“Catalyst projects such as the East Coast Rail Link, LRT3, the Rapid Transit System Link, the Penang Mutiara Line, the Pan-Borneo Highway, and the Sarawak-Sabah Link Road, among other ongoing or planned projects, will enhance connectivity and unlock new growth corridors in Greater KL, Penang, Johor, the East Coast Corridor, Sarawak and Sabah, driving regional development.”
He added that public transport will be strengthened by enhancing first- and last-mile connectivity through major rural road upgrades, expanded bus and demand-responsive transit services, new train sets, and a road-to-rail initiative aimed at easing congestion and improving safety.
“Together with transit-connected community developments, smart city initiatives, and urban regeneration programmes, these efforts will redefine city centres and make them more vibrant, liveable and walkable.
“It will also transform them into attractive hubs for integrated retail, office and leisure spaces, ultimately driving value uplift in key metros such as Greater KL, Penang and Johor Baru.”
All in all, Previn said the 13MP is a “bold, forward-looking roadmap” for Malaysia’s growth.
“It recalibrates our economic narrative amid global and domestic challenges with real estate at its core.
“It is not just about building more, but about building smarter, greener and more connected communities through high-impact strategies that, if executed well, could directly and indirectly reshape our built environment and unlock significant opportunities and benefits for stakeholders across the value chain.”
He added that the real estate vision is anchored by Malaysia’s broader economic ambitions under the 13MP to deliver sustained gross domestic product growth, achieve high-income status and secure a place among the world’s top 30 economies and maintain low inflation at 2% to 3%.
“These 13MP targets, supported by encouraging policies and targeted incentives, provide the foundation for a stable and investor-friendly environment where real estate can grow alongside manufacturing, digital and service-driven sectors.
“If executed with discipline and backed by strong public-private collaboration, the 13MP will not only transform Malaysia’s built environment but also firmly position the nation as a competitive, sustainable and globally relevant economy.”
ENDS
