Maybank IB said the direct beneficiary of JS-SEZ is the property sector.
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 the property, infrastructure and high-technology sectors.
Maybank Investment Bank Research (Maybank IB) 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 was the meeting with the Mentri Besar 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 Maybank IB identifying several companies well-positioned to capitalise on the opportunities.
“The market has reacted positively as the signing of the JS-SEZ agreement validates the implementation of the government’s initiatives. The direct beneficiary of JS-SEZ is the property sector,” it said.
On this note, Maybank IB picked Eco World Development Group Bhd
(EcoWorld) as its JS-SEZ proxy.
Apart from property players, Maybank IB 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 primed for potential development, including SD Guthrie Bhd, Genting Plantations Bhd and Kuala Lumpur Kepong Bhd.
Maybank IB highlighted that EcoWorld’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 Baru and Singapore, as prime assets.
Additionally, the rejuvenation of a prime shopping mall in the Johor Baru City Centre or 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 Maybank IB.
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 (2Q25), will detail the zone’s ambitious targets, including 50 to 100 high-growth projects over the next five to 10 years.
Maybank IB 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.
