NCT Alliance Makes RM490m Move into Industrial Park Development

In a landmark shift that underscores the rising importance of industrial real estate in Malaysia, NCT Alliance Bhd (KL:NCT) has announced its plan to acquire NCT World Sdn Bhd, the developer of two major industrial parks, in a deal valued at RM490.26 million. The move will significantly expand NCT Alliance’s portfolio beyond its traditional focus on residential and commercial projects, signaling a strategic pivot into Malaysia’s fast-growing industrial property sector.

Details of the RM490m Acquisition

Under the agreement, NCT Alliance will acquire the entire equity interest in NCT World from its current owners, Datuk Seri Yap Ngan Choy (executive chairman and managing director of NCT Alliance) and Datuk Yap Fook Choy (executive director).

The consideration will be settled via the issuance of:

Strategic Rationale: Moving into Industrial Properties

NCT Alliance said the acquisition is aligned with its long-term strategy to diversify its development portfolio. The company has built its name on residential and commercial projects, but this deal positions it firmly within the industrial property segment, a sector experiencing strong demand thanks to Malaysia’s role in regional logistics, e-commerce, and manufacturing.

Through the acquisition of NCT World, NCT Alliance gains direct access to projects with a combined gross development value (GDV) of RM4.81 billion, set to be developed over the next six years. These include:

NCT Smart Industrial Park in the Integrated Development Region in South Selangor
NCT InnoSphere, located within the Delapan Special Border Economic Zone (SBEZ) in Kedah

Both projects are strategically located to benefit from Malaysia’s economic corridors—Selangor being the nation’s logistics and industrial heart, while Kedah’s SBEZ leverages proximity to the Thailand border and northern growth zones.

Preserving Cash, Building for Growth

The choice to issue shares and RCPS instead of a cash settlement reflects NCT Alliance’s strategy to preserve cash reserves. With ongoing and upcoming developments requiring significant capital, this structure allows the group to diversify into industrial parks without straining liquidity.

From a financial perspective, the expansion into industrial property is expected to provide recurring revenue streams and broaden the company’s appeal to investors looking for exposure beyond the cyclical residential market.

Market Context: Why Industrial Property is Rising

The shift toward industrial property is not unique to NCT Alliance—it reflects wider trends in Malaysia’s property sector. Several factors are fueling demand for industrial land and smart logistics facilities:

E-commerce Boom: The rise of online retail has created unprecedented demand for warehouses, distribution centers, and last-mile logistics hubs.
Regional Supply Chain Shifts: Global trade realignments are pushing manufacturers to diversify into Southeast Asia, with Malaysia seen as a stable and cost-effective location.
Special Economic Zones: Initiatives like the Delapan SBEZ in Kedah and the Johor–Singapore SEZ are designed to attract foreign investors, boosting demand for industrial land and facilities.
Sustainability and Smart Facilities: Increasingly, tenants and investors seek industrial parks with green certification, automation, and digital integration, which NCT World’s projects are expected to deliver.

For property investors accustomed to KL property opportunities in residential and commercial towers, this highlights an evolving trend: industrial real estate is becoming a growth pillar in Malaysia’s property landscape.

Shareholding Impact

Following the acquisition, the Yap brothers’ shareholding structure in NCT Alliance will shift significantly.

Ngan Choy’s direct stake will increase from 3.16% to 10.63% (and up to 31.41% upon full RCPS conversion)
Fook Choy’s stake will grow from 2.04% to 3.78% (and up to 8.64% with RCPS conversion)
YBG Yap Consolidated Sdn Bhd, their private vehicle, will see its stake diluted from 48.35% to 43.65% (and to 30.58% post-RCPS conversion)

Despite the dilution of YBG Yap Consolidated’s interest, the overall effect is an increase in direct ownership for both brothers, cementing their control over NCT Alliance.

Investor Outlook

Shares in NCT Alliance closed at 48.5 sen, up one sen on the day of the announcement, giving the company a market capitalization of RM946.28 million. The muted but positive response reflects investor acknowledgment of the long-term growth potential in the industrial park sector, while awaiting clarity on shareholder approval.

For buyers and investors, this acquisition suggests that NCT Alliance is positioning itself to become a serious player in Malaysia’s industrial property market, complementing its established residential and commercial portfolio.

Final Thoughts

The proposed acquisition of NCT World for RM490 million marks a transformative step for NCT Alliance. By moving decisively into the industrial park space, the group is aligning itself with one of the fastest-growing segments of Malaysia’s property market.

For investors, this signals a dual opportunity: exposure to traditional residential and commercial developments, along with participation in the long-term growth of Malaysia’s industrial sector.

While KL property continues to anchor the nation’s real estate appeal, projects like NCT Smart Industrial Park in Selangor and NCT InnoSphere in Kedah highlight how industrial developments are becoming critical to Malaysia’s growth story.

To stay ahead of these opportunities—whether in Kuala Lumpur or emerging industrial corridors—explore the latest insights and projects at klproperty.cc, your trusted partner in Malaysia’s evolving property market.