PETALING JAYA: The district of Kulai in Johor will get a new industrial park, with an estimated gross development value of RM3.75bil, to be developed by an Eco World Development Group Bhd
(EcoWorld)-led joint venture (JV).
EcoWorld will hold a 65% stake, SD Guthrie Bhd will own 25% through its unit SD Guthrie Land Ventures Sdn Bhd, and the Johor state government, via Permodalan Darul Ta’zim (PDT), will hold the remaining 10% equity in the JV.
A special-purpose entity, Eco Business Park 8 Sdn Bhd (EBP8), is being incorporated to acquire and develop the 935.24-acre freehold site, with all three shareholders participating in the JV company (JV-co).
The proposed development is expected to span eight to 10 years and will eventually house an integrated industrial hub featuring industrial lots, ready-built facilities, and supporting commercial components, the JV-co said.
Named Eco Business Park 8, the project is designed to cater to high-value sectors including high-tech and artificial intelligence supply chains, advanced electrical and electronics, biotechnology and medical technologies, food technologies, and logistics.
The site is located within the Johor–Singapore Special Economic Zone (JS-SEZ), with close proximity to Senai International Airport and connectivity to the North–South Expressway.
The JV-co said these advantages enhance its appeal to domestic and international industrialists seeking efficient access, strong logistical networks, and a well-supported operating environment.
“This partnership brings together a shared vision for sustainable, future-ready development and combines our complementary strengths to meet rising demand, especially from technology-driven and advanced manufacturing sectors.
“With its strategic location and excellent connectivity, we are confident that Eco Business Park 8 will attract quality investors and contribute meaningfully to Johor’s continued rise as a leading regional powerhouse for industry and innovation,” said EcoWorld president and chief executive officer Datuk Chang Khim Wah in a statement.
EcoWorld, which holds the biggest stake in the venture, will contribute its technical expertise and proven capabilities in delivering green, digital-ready industrial estates as the development manager through its unit, Eco World Project Management Sdn Bhd.
Meanwhile, SD Guthrie group managing director Datuk Mohamad Helmy Othman Basha said the company well-positioned to expand its industrial development portfolio, leveraging its strategic landbank spread across Malaysia.
“This new business vertical is in its early days but shows every promise of becoming an important contributor to our bottom line. The partnerships we have forged with well-known industry leaders, such as EcoWorld, enable us to accelerate progress and to establish Guthrie in this new sector,” Mohamad Helmy added.
PDT president and group chief executive Datuk Ramlee Rahman pointed out that Eco Business Park 8 is one of many opportunities envisioned under the JS-SEZ.
“By positioning this development within the corridor in Kulai, we are not just offering industrial land; we are creating a high-tech ecosystem capable of leveraging JS-SEZ incentives to attract top-tier multinational corporations.
“This project perfectly aligns with PDT’s mandate as the state’s delivery anchor partner, ensuring that the influx of high-value investments translates into sustainable economic complexity and quality jobs for Bangsa Johor,” he said.
The JV agreements were signed by the three companies yesterday. In a joint statement, the companies said the JV comes at an opportune time, allowing the partners to pool their extensive knowledge, expertise, and resources to deliver a future-focused industrial park that will attract quality investors, support local industrialists, and drive high-growth value creation.
In its Bursa Malaysia filing yesterday, SD Guthrie said it expects to record a gain on disposal, after tax and expenses, of approximately RM526mil in its financial year ending Dec 31, 2026, from the proposed land disposal.
The disposal is expected to be completed by the second half of the 2026.
SD Guthrie will sell its 941.821 acres of freehold land in Kulai – free from encumbrances and currently planted with oil palms – to the JV-co, EBP8, for -RM814.78mil.
EBP8 is currently in the initial stages of development planning. Therefore, it is too early to ascertain the total development costs, timing and expected profits pending submission of the development plan, the company said.
SD Guthrie added that it will fund its share subscription obligations using internal funds.
Meanwhile, EcoWorld, which holds a 65% stake in EBP8, will fund the deposit payment (15% of the purchase price) for the land acquisition using internal funds via shareholders’ advances to the JV-co.
“Subject to the proposed land acquisition becoming unconditional, EBP8 will fund the balance purchase price and the development costs through a combination of shareholders’ advances and project-level bank borrowings,” EcoWorld said.
It added that the exact breakdown will be determined later, depending on the amount of external financing that can be secured, as well as its gearing level and cash requirements at the time the funding is needed.
EcoWorld said the purchase price is within the acceptable range for land costs, given the potential GDV to be generated.
The company also noted that no formal valuation was conducted, based on its knowledge of surrounding property market values.
Pertaining to EcoWorld’s funding obligations on the shareholders’ advances into EBP8 upon the proposed land acquisition becoming unconditional, EcoWorld said it intends to fund this through a combination of internal funds and borrowings.
The exact breakdown of internal funds and borrowings will only be determined at a later stage after considering EcoWorld’s gearing level and cash requirements for its business operations at the point in time when funding is required at EBP8, it noted.
This marks the second JV between EcoWorld and SD Guthrie in less than a year for industrial development.
The first JV, with SD Guthrie and NS Corporation, was signed in April 2025 for the development of Eco Business Park 7 in the Malaysia Vision Valley 2.0 economic corridor in Negri Sembilan, EcoWorld said.
