In the past couple of years, China has overtaken Singapore to be Malaysia’s largest real estate investor. From 2014 to 2016, Chinese companies, mainly developers, invested an estimated $2.6 billion across the Causeway, compared with Singapore’s $1.6 billion. At the height of Iskandar Malaysia’s development boom in 2013, the Chinese committed about $2.7 billion.

Cushman & Wakefield says in the past three years, Chinese investors accounted for 46% of real estate investments in Malaysia.

China Railway and Johor-based Iskandar Waterfront Holdings jointly acquired a 60% stake in the Bandar Malaysia project from state-owned firm 1Malaysia Development Bhd for $2.3 billion in one of the country’s largest land transactions. Touted as the world’s largest underground city, the project encompasses residential and commercial complexes. Bandar Malaysia will also house the company’s regional headquarters.

Besides China Railway, a number of Chinese MNCs will also base their regional operations in Malaysia. E-commerce giant Alibaba Group has reportedly planned to set up a regional distribution hub within KLIA Aeropolis as well as a logistics centre in Iskandar to cater to its fast-growing business in the region.