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MEASURING EFFICIENCY IN MALAYSIAN REAL ESTATE INVESTMENT TRUSTS

Oct 2026 · PLANNING MALAYSIA · Vol 24 · 0 citations · 20 references

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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