GreenRE and SHAREDA ink agreement to boost sustainable development in Sabah

• Both organisations aim to facilitate capacity-building and training programmes for developers in Sabah, support the certification of residential and commercial projects under the GreenRE framework, and enhance industry awareness of the economic and environmental advantages of sustainable development.

KUALA LUMPUR (Oct 9): GreenRE and the Sabah Housing and Real Estate Developers Association (SHAREDA) have formalised a memorandum of agreement (MoA) here at Wisma REHDA today, marking a step forward in promoting sustainable building practices within Sabah’s property sector.

Under the collaboration, both organisations aim to facilitate capacity-building and training programmes for developers in Sabah, support the certification of residential and commercial projects under the GreenRE framework, and enhance industry awareness of the economic and environmental advantages of sustainable development.

Following the signing ceremony, SHAREDA president Datuk Johnny Wong Chen Yee told EdgeProp.my that hesitation among developers to adopt green practices often stems from the perception of high certification costs. He noted that many believe obtaining green certification could raise project costs by 10% to 20%.

“There is a misconception that certification automatically adds significant cost,” Wong said, explaining that in reality, certified projects could benefit from faster approval processes and potential incentives from the authorities. For example, projects that typically take up to three years for approval could experience shorter timelines through the certification process.

Wong added that the collaboration could also lead to improved financing options for both developers and homebuyers, making sustainable development more viable. He emphasised that SHAREDA continues to work closely with stakeholders to enhance understanding of the certification process, as much of the resistance is due to misinformation rather than actual financial burden. 

Growing recognition of green standards and focus on affordable housing

On the outlook for 2026 and the role of affordable housing within this agenda, GreenRE chairman Datuk Seri Fateh Iskandar Mohamed Mansor expressed optimism about the growing recognition of green standards nationwide. He said more local councils are acknowledging the importance of sustainable development, and developers are increasingly viewing certification as a value-adding measure rather than an obstacle. He also expressed confidence that GreenRE’s market capitalisation would continue to grow in line with this trend.

GreenRE executive director Ir. Ashwin Thurairajah shared that the organisation is currently involved in several projects, including the Mutiara Homes initiative in Penang. He added that GreenRE is also working with stakeholders to expand certification efforts in the affordable housing segment. To encourage wider participation, GreenRE is offering a 50% discount on certification fees for affordable housing projects.

According to Ashwin, certification uptake has risen by about 50%, reflecting growing interest not only in major urban centres but also in emerging markets—a sign, he said, of the industry’s gradual but steady shift towards sustainability. 

Secret Garden, 1 Utama 

Following the signing ceremony, the delegation visited 1 Utama’s Secret Garden, located atop Malaysia’s first Platinum-rated GreenRE shopping mall. Recognised as the country’s leading sustainable retail destination, 1 Utama integrates innovative green technologies in its architecture, engineering and operations to minimise energy use and environmental impact.

Among its key sustainability features, 1 Utama operates an Ice and Chilled Water Storage System that utilises off-peak grid capacity to cut electricity consumption by up to 30%, and a rainwater harvesting system that reduces reliance on treated water by a similar margin.  

The mall’s 30,000 sq ft green roof lowers building heat load by as much as 90%, while its Green Lease initiative ensures tenants adhere to GreenRE-aligned fit-out standards, paving the way for GreenRE Retail Certification.

Supporting its goal of achieving net zero carbon emissions by 2050, 1 Utama also operates the 1Recycling Centre (1RC)— a one-stop hub where shoppers can recycle items such as bottles, paper, and e-waste.  

Integrated with the mall’s SuperApp, the system rewards users with Green Points that can be converted into shopping credits or used in environmental initiatives, encouraging a circular, low-waste lifestyle among visitors.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.