KUALA LUMPUR (Feb 5): The Malaysian government may reassess its level of support for the real estate investment trust (REIT) sector, as the industry has grown into a mature and commercially sustainable segment of the capital market, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.
He noted that Malaysia has developed its REIT ecosystem over more than two decades, during which the structure has become an established financing and asset-management tool for property owners and corporations. REITs are now widely used as a strategy to unlock value, improve liquidity, and strengthen balance sheets, particularly for portfolios involving income-producing assets.
The minister highlighted that the sector’s market capitalisation expanded dramatically to about RM57 billion last year, compared with less than RM1 billion when REITs were first introduced. With the market now well accepted by investors and institutions, he suggested it may be timely to evaluate whether additional government incentives remain necessary.
REITs continue to play a significant role in Malaysia’s real estate market by providing exposure to diversified property assets, including logistics facilities, retail centres, office towers, and industrial parks. In key economic regions such as Kuala Lumpur and Selangor, REIT-owned assets frequently include commercial property in KL, office space in Bukit Jalil, and logistics or manufacturing facilities located on industrial land in Selangor or within established hubs such as the Subang area and Puchong, where demand for factory space in Puchong and surrounding corridors remains closely tied to trade, e-commerce, and manufacturing growth.
As institutional investment into industrial and logistics assets continues to rise, REIT structures are increasingly viewed as a long-term vehicle for holding industrial property in the Subang area and other strategic locations with strong connectivity to ports, highways, and airports.
Speaking at a fiscal and monetary policy session at the Malaysia Economic Forum 2026, Amir Hamzah also addressed broader economic conditions. He indicated that there is potential for an upward revision to Malaysia’s growth outlook when the figures are reviewed in April, although authorities are allowing Bank Negara Malaysia time to finalise its assessment.
He emphasised that the government’s priority remains the effective execution of initiatives already outlined under the 13th Malaysia Plan and Budget 2026, with the aim of maintaining strong economic fundamentals and sustaining investor confidence across sectors, including real estate and infrastructure.
As Malaysia’s property investment landscape evolves, any policy adjustments affecting REITs will be closely watched by investors, developers, and asset owners, particularly those involved in income-generating commercial and industrial properties across Kuala Lumpur and Selangor.
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