PETALING JAYA: The Johor-Singapore Special Economic Zone (JS-SEZ) is seen as a transformative project for both nations, with substantial economic, social, and industrial benefits.
Anchored by strong bilateral commitment, the zone is expected to deliver significant growth across property, infrastructure, and high-technology sectors.
Maybank Investment Bank (MaybankIB) Research expressed optimism following a recent visit to Johor, which included discussions with state officials, property developers, and site inspections of key locations.
"Our recent visit to Johor, a week after the signing of the JS-SEZ agreement, reaffirms our confidence of its success. The cherry on top of our trip is the meeting with the Chief Minister of Johor who shared his views and the commitment of both Malaysia and Singapore to see this agreement through," the research house stated.
The property sector emerged as a direct beneficiary of the JS-SEZ, with MaybankIB identifying several companies well-positioned to capitalise on the opportunities.
"The market has reacted positively as the signing of the JS-SEZ agreement validates implementation of the government’s initiatives. The direct beneficiary of JS-SEZ is the property sector,” it said.
On this note, MaybankIB picked Eco World Development Group Bhd
(ECW) as its JS-SEZ proxy.
Apart from property players, MaybankIB also liked certain oil and gas players, data centre players and plantation companies with exposure to Johor.
These include ITMax System Bhd, Dialog Group Bhd and YTL Power International Bhd, as well as plantation companies with landbank in Kulai, which are prime for potential development, including SD Guthrie Bhd, Genting Plantations Bhd and Kuala Lumpur Kepong Bhd.
MaybankIB highlighted that ECW’s Quantum Edge site in Kulai and Iskandar Waterfront Holdings Sdn Bhd’s Danga Bay site near the rapid transit system (RTS) track, which will link Johor Bahru and Singapore, as prime assets.
Additionally, the rejuvenation of a prime shopping mall in Johor Bahru City Centre (JBCC), next to the RTS link, was seen as a potential catalyst for urban renewal and increased property values.
It noted that the Sedenak area, a data centre hotspot, was identified as a critical zone for high-tech investment.
"Our site visit to Sedenak reaffirms our conviction on the data centre play, which remains a hotspot of activities," said MaybankIB.
This aligns with the broader JS-SEZ goal of fostering high-growth, high-value, and high-technology projects over the next decade.
"A view of the progress of the RTS suggests that the project is on track to complete by end-2026," the research house stated, adding that the RTS link would enhance connectivity and economic integration between the two nations.
Further, it noted that a JS-SEZ blueprint, expected in the second quarter of 2025, will detail the zone’s ambitious targets, including 50 to 100 high-growth projects over the next five to 10 years.
MaybankIB anticipated that the blueprint would outline projected economic impacts, including an annual gross domestic product boost of US$28bil (RM125bil) for Malaysia, and social benefits such as the creation of 20,000 skilled jobs in the first five years.
"There will be a JS-SEZ blueprint – likely in 2Q 2025 – which we expect among others to provide more details on the target of 50/100 high-growth, high-value and high-technology projects next 5/10 years, thus the expected investment values, economic outcome, and social impact," MaybankIB stated.
The blueprint is also expected to address key challenges, including infrastructure and talent development, with a focus on aligning wages to approximately two-thirds of Singapore’s levels.
MaybankIB pointed out that strong political will will drive the JS-SEZ initiative.
"Our session with Datuk Onn Hafiz, Chief Minister of Johor, gave us the conviction on the willpower of both Malaysia and Singapore to make JS-SEZ a success," MaybankIB remarked, highlighting ongoing efforts to attract investment and ensure timely project implementation.
