Strategic retail collaboration aligns with Johor-Singapore SEZ, shaping a new CBD in Johor Bahru.

Astaka Holdings has unveiled a RM1.2 billion mixed-use development in Johor Bahru, partnering with Singapore’s CapitaLand Investment Ltd (CLI) to craft a retail strategy that aims to transform the city’s skyline and economy.

Partnership to Shape Retail Vision

The collaboration was formalised on August 19, 2025, through a retail advisory agreement witnessed by Johor Menteri Besar Datuk Onn Hafiz Ghazi. Under the deal, CLI will provide expertise in asset planning and both pre- and post-opening operations, leveraging its experience managing more than 70 malls across Singapore, Malaysia, and China.

Expanding One Bukit Senyum

The new mixed-use development forms part of Phase 3 of Astaka’s flagship One Bukit Senyum project. Together with Arden @ One Bukit Senyum, Phase 3 carries a gross development value (GDV) of RM2.1 billion. This raises the total GDV of the three phases to RM3.6 billion.

Components of the Final Phase

Phase 3A, Arden, is a residential skyscraper launched in March 2025 with an RM800 million GDV. It achieved an 80% take-up rate and is set for completion by 2030. Phase 3B, valued at RM1.2 billion, will feature a 300,000 sq ft lifestyle mall, a 250-room five-star hotel, and 300 branded residences. Construction begins in 2026, with completion also targeted for 2030.

Driving Johor’s Transformation

Astaka’s executive director and CEO, Allen Khong, emphasized that One Bukit Senyum has been central to Johor Bahru’s growth over the past decade. He highlighted that the project supports the state’s vision for a world-class central business district and will benefit significantly from the Johor-Singapore Special Economic Zone (JS-SEZ) and the upcoming RTS Link.

CapitaLand’s Retail Expertise

CLI’s commercial management CEO, Ervin Yeo, noted that the partnership allows Astaka to create a destination appealing to both locals and regional visitors. He stressed that CLI’s expertise in curating high-traffic shopping experiences will unlock the mall’s potential and contribute to Johor Bahru’s urban vibrancy.

Cross-Border Economic Significance

Menteri Besar Onn Hafiz lauded the collaboration between Astaka and CLI, describing it as a model for private-sector partnerships that reinforce the Johor-Singapore economic corridor. He said such initiatives will support the success of the JS-SEZ, driving mutual growth while strengthening the regional business ecosystem.

Astaka’s partnership with CapitaLand marks a pivotal step in Johor Bahru’s transformation into a modern urban hub. By integrating retail, residential, and leisure spaces, the RM1.2 billion project not only elevates the city’s profile but also strengthens cross-border collaboration with Singapore—an impact that will reverberate across Southeast Asia’s economic landscape.

Sources: New Straits Times (2025) , The Star (2025)

Keywords: Astaka CapitaLand, Johor Bahru Development, One Bukit Senyum, Mixed-Use Project, Johor-Singapore SEZ, Lifestyle Mall