MEASURING EFFICIENCY IN MALAYSIAN REAL ESTATE INVESTMENT TRUSTS

Authors

  • Nurin Iyazi Raman Institute of Postgraduate Studies, Faculty of Built Environment, UNIVERSITI TEKNOLOGI MARA, PERAK BRANCH, SERI ISKANDAR CAMPUS, MALAYSIA,
  • Nor Nazihah Chuweni Faculty of Built Environment, UNIVERSITI TEKNOLOGI MARA, PERAK BRANCH, SERI ISKANDAR CAMPUS, MALAYSIA
  • Sara Wibaning Respati Department of Civil Engineering, BALIKPAPAN STATE POLYTECHNIC, INDONESIA
  • Emil Azmanajaya Department of Civil Engineering, BALIKPAPAN STATE POLYTECHNIC, INDONESIA

DOI:

https://doi.org/10.21837/pm.v24i44.2294

Keywords:

data envelopment analysis, efficiency, REITs

Abstract

This paper highlights the necessity of evaluating the efficiency of Malaysian Real Estate Investment Trusts (M-REITs) across the pre-pandemic, pandemic, and post-pandemic phases. While the sector holds significant strategic value, there is a lack of empirical research focusing on the technical, managerial, and scale efficiencies of M-REITs. To address this gap, the study analyses M-REITs efficiency between 2015 and 2024 by applying a non-parametric Data Envelopment Analysis (DEA) methodology.  Specifically, the input-oriented Variable Return to Scale (VRS-DEA) model was employed to determine the efficiency scores for M-REITs. The findings indicate the average technical efficiency score is 0.633, indicating moderate overall performance. Pure technical efficiency is relatively high at 0.801, while scale efficiency averages 0.783. This suggests that M-REITs demonstrate strong relative resource-conversion capabilities under managerial control, but efficiency losses are partly due to operating at a non-optimal scale. Ultimately, this study highlights the importance of better resource utilisation and appropriate scale adjustments to improve performance.

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Published

2026-10-07

How to Cite

Raman, N. I., Chuweni, N. N., Respati, S. W., & Azmanajaya, E. (2026). MEASURING EFFICIENCY IN MALAYSIAN REAL ESTATE INVESTMENT TRUSTS. PLANNING MALAYSIA, 24(44). https://doi.org/10.21837/pm.v24i44.2294

Issue

Vol. 24 (2026): PLANNING MALAYSIA JOURNAL : Volume 24, Issue 5, 2026

Section

Article

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eISSN: 0128-0945 © Year. The Authors. Published for Malaysian Institute of Planners. This is an open-access article under the CC BY-NC-ND license.

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