Paragon Globe shifts Johor strategy from property to economic ecosystems

KUALA LUMPUR: Paragon Globe Bhd is broadening its horizons beyond traditional property development, focusing on constructing economic ecosystems around its strategic land holdings in Johor. While property remains their primary business, Paragon Globe is now assessing land based on the economic impact, community benefits, and long-term value each area can generate.

This approach spans industrial, residential, commercial, and income-generating projects, with a keen interest in luring suitable tenants and anchor tenants into key growth corridors. The company has proposed a RM398.11 million land sale in Tanjung Kupang to a data centre infrastructure firm, while nearby land is being developed around the PGB-GSP AutoPark automotive ecosystem.

Executing chairman Datuk Sri Edwin Tan Pei Seng explained that these two uses exemplify the company's philosophy of integrating various economic activities within a broader growth corridor - one for digital infrastructure, the other for automotive manufacturing and its supporting supply chain. Tan emphasized that Paragon Globe is not merely buying and selling parcels individually, but strategically placing the right users in the right locations to stimulate stronger economic activity in the surrounding areas.

Meanwhile, the company is also revamping its long-term development plans. In the Sedenak area, part of the Kulai-Sedenak flagship zone in the Johor-Singapore Special Economic Zone (JS-SEZ), Paragon Globe is aiming for a significant land acquisition that could support a RM1.69 billion industrial park, with elements like industrial facilities, commercial components, and worker housing.

Looking ahead, Paragon Globe will concentrate on smart landbank management, ecosystem-driven development, careful capital investment, and efficient project execution as it strengthens its position in Johor's key growth areas. The company intends to continue investing, but not all projects need simultaneous funding. They will phase their developments, recycle capital when beneficial, and modify their timelines according to market conditions.