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KUALA LUMPUR (Sept 5): Malaysia’s transit-oriented development ambitions are gaining momentum, but industry voices caution that proximity to a train station does not automatically translate into affordability. Following the June opening of the LRT3 Shah Alam Line, Prime Minister Datuk Seri Anwar Ibrahim called for land surrounding rail hubs to be prioritised for affordable housing, small and medium enterprises, and improved parking infrastructure.
In The Edge’s Cover Story 1, the Real Estate and Housing Developers’ Association Malaysia (Rehda) said it supports the government’s housing aspirations and sees genuine value in placing affordable homes within well-connected transit hubs, noting that lower-income and middle-income communities rely heavily on public transport. However, the association cautioned that land near major transit nodes carries a significant accessibility premium, while affordable housing prices remain capped by the government — squeezing margins for developers, particularly smaller ones.
Rehda, along with several industry experts, called for higher permissible densities, faster approvals, and reduced development charges, and suggested a longer-term shift towards direct government delivery of affordable housing, partly funded by structured private-sector contributions.
Prasarana Malaysia Bhd, the government-linked public transport system owner and operator, said its strategy is not to sell strategic transit land outright but to unlock its value through joint ventures with private developers. The company confirmed it is committed to incorporating affordable housing components into its developments “where appropriate”, with final mixes determined by feasibility assessments.
Meanwhile, Cover Story 2 looks at the just-ended second-quarter 2026 corporate earnings season. Much of the attention was on the technology sector, which has continued to rally, supported by robust demand from artificial intelligence, data centres and advanced semiconductor applications.
Tech stocks’ earnings generally came in within market expectations, with ViTrox Corp Bhd (KL:VITROX) emerging as the star performer after beating consensus estimates. Its net profit more than tripled year on year to RM85 million from RM28.1 million a year earlier, driven by stronger shipment volumes of its machine vision system and automated board inspection products amid accelerating global semiconductor demand.
Analysts, however, cautioned that while a meaningful earnings recovery is expected across the sector, the pace of earnings growth could fall short of the elevated expectations already embedded in share prices. This could leave limited room for further valuation expansion unless earnings upgrades continue to materialise.
TA Securities tech analyst Tony Chan said that with investors already pricing in strong earnings growth, the risk-reward proposition may not be particularly attractive at current levels.
So, what lies ahead for the tech sector — and which stocks are worth a look?
The ongoing upcycle in the tech sector, coupled with Malaysia’s position as a net oil and gas exporter and robust commodity prices, also contributed to the resilience of overall corporate earnings’ resilience during the quarter under review.
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