The Comparison of Malaysian Real Estate Investment Trusts (M-REITs) and Islamic REITs with China-REITs (C-REITs) and Japan Infrastructure Fund for Railway Infrastructure Development in Malaysia: A Review

Malaysia launched REIT in 2013 for infrastructure that could leverage the financial stock market in Malaysia. As one of the most developed countries in South East Asia, Malaysia's infrastructure development, mainly the land transportation network such as the railway system, is becoming a nerve of economic growth with rapid rail development comprised of Light Rail Transit (LRT), Mass Rail Transit (MRT), and the Electric Train Service (ETS) under KTMB and Prasarana, respectively. However, discontinuing rail development in the main city could obstruct the Malaysian market and economic growth. The investment regime that has potential for railway development, such as the real estate market, should become more prominent. Thus, the potential of M-REITs and Islamic REITs is to be explored for real estate infrastructure in the Malaysian market. This study aims to understand the REIT infrastructure and its differences from normal REITs and i-REITs on the differences between China REIT (C-REIT) and Japan Infrastructure Fund. The outcome of this study will be compared with M-REIT followed by its potential in the domain of infrastructure investment. The framework of C-REIT and Japan Infrastructure Fund will be done through several categories, starting with the investors, REIT management, project owners, ownership, distribution, and others to be discussed in depth.