KUALA LUMPUR: Mah Sing Group Bhd aims to derive 30 per cent of its group revenue from recurring income within the next five years as it diversifies its earnings base beyond property sales and expands its industrial and data centre-related opportunities.
The target represents a shift towards a more diversified earnings model, reducing reliance on property sales while building a stronger base of income from leasing commercial properties, estates and retail space.
Mah Sing founder and group managing director Tan Sri Leong Hoy Kum said recurring income, although currently contributing a relatively small share of revenue, would become an increasingly important part of the group's long-term growth strategy.
"The recurring-income ambition is part of Mah Sing's longer-term growth plans, although achieving the 30 per cent contribution will depend on expanding its income-generating portfolio and converting opportunities into sustainable revenue," he told Business Times.
Leong said the company's current priority was to grow the business and continue improving performance, with recurring income, industrial developments and land monetisation offering potential avenues to strengthen its earnings base.
Mah Sing is also exploring land sales to data centre operators and hyperscalers in Johor to capitalise on growing demand for digital infrastructure.
Its industrial property push includes MS Industrial Park @ Kulai, a RM2.2 billion joint-venture development with KLK Land Sdn Bhd spanning 419.17 acres of freehold land within Zone E of the Johor-Singapore Special Economic Zone (JS-SEZ).
The partners have opened the project's sales gallery after Phase 1A recorded more than 90 per cent take-up, with Phase 1B now open for sale.
Planned across five phases, the industrial park will offer two-storey semi-detached and detached factories, industrial land parcels ranging from one to eight acres, and larger plots for customised industrial facilities and data centre developments.
Mah Sing holds a 60 per cent stake in the project, while KLK Land, a wholly-owned subsidiary of Kuala Lumpur Kepong Bhd, owns the remaining 40 per cent.
Since entering Johor in 2000, Leong said the group has continued to grow its presence through residential and industrial developments.
"Our experience in developing five industrial parks across the Greater Klang Valley and Johor gives us a solid foundation as we embark on MS Industrial Park @ Kulai, our sixth industrial development. We see strong potential in Kulai, supported by the JS-SEZ, its proximity to Singapore, improving infrastructure and the continued growth of high-value industries in Johor," he said in a statement.
Meanwhile, Mah Sing plans to introduce higher-end residential products next year while maintaining its focus on homes within its established price range. Further development announcements are also expected next year.
Leong said the group's immediate priority remained growing the business and improving performance across its property segments.
Mah Sing is targeting property sales of RM2.76 billion this year after posting an eight per cent increase in net profit for the financial year ended Dec 31, 2025 (FY2025).
Net profit rose to RM260 million from RM239.1 million a year earlier, supported by the finalisation of construction costs for projects nearing completion.
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