MTAG Group Bhd has announced plans to acquire a 7.54-hectare freehold land parcel in Johor Bahru for RM53.58 million in cash, as part of its strategy to expand manufacturing capacity and streamline operations.
In a filing with Bursa Malaysia, the Johor-based printing and manufacturing group said approximately one-third of the land will be developed for its own production and operational use. The remaining portion may be held for future development or rental income, providing longer-term flexibility.
Although the land is currently zoned for residential use, MTAG intends to apply for a conversion to industrial zoning after completing the acquisition. The company cautioned that failure to secure the necessary approvals could affect its ability to proceed with the planned development and, in turn, its operational consolidation and expansion objectives.
The land will be acquired from Grand Focus Sdn Bhd, with the group funding the purchase entirely through internally generated cash. Completion of the transaction is targeted for the second half of 2026, subject to regulatory approvals.
MTAG said the acquisition supports its move up the value chain by enabling higher levels of automation and advanced converting technology, strengthening its long-term competitiveness.
The transaction underscores continued demand for large, contiguous industrial sites — a trend also evident in the Klang Valley, where limited availability continues to underpin interest in industrial land in Selangor, particularly in established manufacturing zones such as Puchong and the Subang area.
As industrial land supply tightens in Selangor, manufacturers increasingly look to Johor for expansion, while maintaining corporate functions, sales offices, or regional management teams in commercial property in KL and decentralised office locations like office space in Bukit Jalil.
According to market data, MTAG recorded a trailing 12-month EBITDA margin of 18.2%, with a return on equity of 5.4%, reflecting stable operating performance despite broader market volatility.
MTAG shares closed half a sen higher, or 2.13%, at 24 sen on Friday, valuing the group at approximately RM164 million. Over the past year, the stock has declined by about 23%, in line with weaker sentiment across small- and mid-capitalisation industrial counters.
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