PETALING JAYA (July 10) — KTI Landmark Bhd is exploring a major property development opportunity in Sabah after its wholly owned subsidiary, K.T.I. Sdn Bhd (KTISB), signed a Memorandum of Understanding (MoU) with the Sabah Rubber Industry Board (SRIB) to jointly study the development of approximately 500 acres of land in Tuaran.
The proposed project could see the land transformed into a residential and/or industrial estate, expanding KTI Landmark's presence in Sabah's growing property development sector.
The MoU, signed on July 9, 2026, involves two adjoining parcels of land located at Samat Sawah, Tuaran, Sabah, measuring approximately:
The combined 500-acre freehold site is owned by the Sabah Rubber Industry Board (SRIB), a statutory body under the Sabah state government responsible for overseeing and developing the state's rubber plantation industry.
Under the agreement, KTISB will undertake feasibility studies to evaluate the land's suitability for a large-scale residential and/or industrial development.
The MoU establishes the preliminary framework for both parties to assess the project's commercial and technical viability.
Should the feasibility studies prove favourable, KTI Landmark and SRIB intend to negotiate a formal Joint Venture Agreement (JVA), which will be subject to:
The company emphasised that the current MoU is non-legally binding and does not create any contractual, financial or monetary obligations on either party.
Each party will bear its own costs throughout the feasibility assessment stage.
The agreement will remain effective for 12 months from July 9, 2026, unless:
This provides both parties sufficient time to evaluate the project's feasibility before making any binding investment commitments.
As the MoU represents only an initial collaboration framework, KTI Landmark said it will not have any material impact on:
The board also noted that the risks associated with the MoU are currently minimal and that any future collaboration will be carefully evaluated before proceeding.
Additionally, none of the company's directors, major shareholders, or persons connected with them have any direct or indirect interest in the proposed collaboration.
The proposed development highlights the growing interest in unlocking the value of large government-owned land banks in Sabah through strategic partnerships with private developers.
If the project proceeds beyond the feasibility stage, the 500-acre site in Tuaran has the potential to become one of the state's larger integrated developments, combining residential housing and industrial components to support regional economic growth.
For KTI Landmark, the MoU provides an opportunity to secure a sizeable long-term development pipeline without committing significant capital upfront. The feasibility-first approach also allows the company to assess market demand, infrastructure requirements, regulatory approvals and financial viability before entering into a binding joint venture.
From a broader property market perspective, the initiative reflects continued momentum in East Malaysia, where industrial expansion, population growth and infrastructure improvements are creating new opportunities for mixed-use and industrial township developments beyond the Klang Valley and Johor.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 10 Jul 26
Malaysia