Sime Darby Property to buy 557 acres in Kulai for RM3 billion township; OMRON Malaysia plans RM259 million Selangor plant relocation

Sime Darby Property expands Johor pipeline with new Kulai township

Sime Darby Property Bhd has entered into a conditional sale and purchase agreement to acquire 556.96 acres of freehold land in Kulai, Johor, from SD Guthrie Bhd for RM418.5 million. The group plans to develop the site into a sustainable township comprising landed residential and commercial developments with an estimated gross development value (GDV) of about RM3 billion.

The land is along Jalan Kulai-Kota Tinggi in Flagship Zone F (Kulai-Sedenak) of the Johor-Singapore Special Economic Zone (JS-SEZ), near Senai Airport City, i-Park @ Senai and Sedenak Tech Park. The first phase is targeted for launch in 2028, while the overall development is expected to take 10 to 15 years.

The acquisition is being undertaken by wholly owned Sime Darby Property (Kulai) Sdn Bhd. Up to 16.56 acres are earmarked for a proposed public infrastructure project and are to be surrendered to the government. Completion remains subject to approvals from the Estate Land Board, the Johor state authority and the Ministry of Economy.

OMRON Malaysia plans RM259 million relocation and expansion at COMPASS @ Kota Seri Langat

OMRON Malaysia Sdn Bhd, which is scheduled to be transferred to Aratas Corp and renamed Aratas Components Malaysia Sdn Bhd, plans to invest about ¥10 billion (RM259 million) to relocate and expand its Malaysian manufacturing operations at COMPASS @ Kota Seri Langat in Banting, Selangor.

According to COMPASS IP Sdn Bhd, the company has entered into a sale and purchase agreement for a 17-acre site at the managed industrial park. Construction is scheduled to begin in October 2026, subject to the necessary approvals, with completion and the start of operations targeted by end-2027. According to the company, the project is expected to lift the Malaysian factory's production capacity to about 1.5 times its current level, primarily serving India and the wider Asia-Pacific market. The facility is expected to manufacture relays, sockets and other electronic components.

The company said the expanded Malaysian operation is expected to account for more than 10% of the former OMRON Device & Module Solutions business's global production capacity. COMPASS @ Kota Seri Langat is a 220-acre freehold managed industrial park involving Permodalan Nasional Bhd, KWEST Group and AREA Group, with ready-built factory units ranging from 3,600 sq ft to 50,000 sq ft.

Today's roundup

Two development stories led a lighter session of Malaysian property news between Aug 11 and Aug 12. Sime Darby Property entered into a conditional agreement to acquire 557 acres in Kulai for a planned RM3 billion township within the JS-SEZ, while OMRON Malaysia outlined a RM259 million relocation and expansion of its manufacturing operations to a Selangor industrial park. Elsewhere, PKNS rejected claims about its financial position, Eddie Ong ceased to be a substantial unitholder of Hektar REIT, and Armani Group moved to introduce its projects to the Kazakhstan market.