Malaysia unveils transit projects, locks in Malay reserve land at Bandar Malaysia

Malaysia targets prime transit-oriented projects as new Selangor rail line opens

The Ministry of Transport has identified several areas around stations on the Light Rail Transit 3 (LRT3) Shah Alam Line for transit-oriented development (TOD), Transport Minister Anthony Loke Siew Fook said at a press conference after the line's launch in Klang yesterday, reported by Bernama and carried by EdgeProp. Loke named Seri Andalas, Kayu Ara, Bandar Bukit Tinggi and Johan Setia as potential sites with large parcels suited to commercial centres or affordable housing. He argued that park-and-ride land was underused, since a 600-bay car park benefits only those 600 vehicles parked from morning to night, and said the government wants such land optimised under the TOD concept.

Prasarana Malaysia plans to add five more stations on the line, at Tropicana, Raja Muda, Temasya, Bukit Raja and Bandar Botanik, with construction expected to begin at the end of 2026. In his launch speech, Prime Minister Datuk Seri Anwar Ibrahim called for Prasarana-owned land near public transport stations to be developed into public housing under the TOD approach, and said developments near LRT and MRT stations should keep adequate parking and provide commercial space for small and medium entrepreneurs. He said the approach would lower commuting costs, raise public transport use and generate better commercial returns.

The line runs 37.8km from Bandar Utama to Johan Setia and is set to serve about two million residents along the route, according to figures cited at the launch. Prasarana is targeting daily ridership of 67,000 passengers in the first year, rising to about 117,708 within five years. Anwar also announced free rides for all passengers, and on Prasarana-operated feeder buses along the line, for one month from June 29 to July 31. The Bukit Raja station named among the planned additions sits near a 6.07-hectare parcel that Titijaya Land agreed to buy in Klang, a deal reported the previous week.

Anwar backs Malay land quota at prime Kuala Lumpur development site

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said the decision to gazette 50 acres, or 20.23 hectares, within Bandar Malaysia as Malay reserve land is a significant step to safeguard Bumiputera interests that requires political courage and consensus-building. He was speaking at the National Convention of the Syariah Legal Profession 2026 in Putrajaya on June 27, which was reported by The Edge, The Sun and Bernama. Anwar said the 50 acres is equivalent in value to about 5,000 acres in Kedah, and acknowledged the decision could prove controversial if not handled carefully.

The 480-acre Bandar Malaysia site, at the former Kuala Lumpur air base in Sungai Besi, was taken back by the government after the original project failed amid alleged abuses under a previous administration, and is now managed by Khazanah Nasional and Petroliam Nasional. The wider development is expected to carry a gross development value of about RM140 billion. The gazette was first flagged in the Budget 2026 tabling in October 2025, where the government said Petronas, as landowner, would plan the site and begin the first phase by the end of 2026.

Anwar said the government has briefed leaders from various communities on the rationale to prevent misunderstandings. The Finance Ministry has previously said development principles under study include clustered settlement areas near facilities such as mosques, integrated development aligned with the Malaysia Madani agenda, and potential cultural tourism showcasing Malay heritage, within the aim of turning the site into an international business hub.

Also on the radar today

Today's roundup

Transport and housing led the weekend. The LRT3 Shah Alam Line opened over its 37.8km route, with the Transport Ministry naming Seri Andalas, Kayu Ara, Bandar Bukit Tinggi and Johan Setia as transit-oriented development sites, Prasarana planning five more stations from end-2026, and one month of free rides from June 29. On policy, Anwar defended gazetting 50 acres of the 480-acre Bandar Malaysia site as Malay reserve land within a project carrying an estimated RM140,000,000,000 gross development value, and separately pledged low-rent housing for civil servants on government land. In brief, EcoWorld and SD Guthrie completed the EBP8 Kulai land deal, Penang Port opened a 2.2-acre Butterworth tender, Vestland and Econpile won Klang Valley building contracts, and Rehda Institute updated its development handbook.