The JS-SEZ is increasingly seen as a lynchpin for future growth and investment opportunities.
PETALING JAYA: The Johor-Singapore Special Economic Zone (JS-SEZ) is poised to become a catalyst for Asean’s supply chain transformation, driven by the region’s pivot towards self-sufficiency amid rising geopolitical and economic headwinds.
As Asean economies move to strengthen intra-regional connectivity and industrial integration, the JS-SEZ is increasingly seen as a lynchpin for future growth and investment opportunities.
CIMB Research believes the JS-SEZ represents “a compelling strategic platform for coordinated Asean supply chains” and urges investors to pay close attention to early movers within the construction, property, and logistics sectors.
“We advocate construction, property, and logistics-related plays as early beneficiaries of the JS-SEZ,” the brokerage noted in its latest analysis.
The recent joint JS-SEZ business and investment forum underscored this momentum, spotlighting bold regulatory proposals, infrastructure commitments, and sustainability initiatives from both sides of the Causeway.
CIMB Research flagged Sunway Bhd
, IJM Corp Bhd, UEM Sunrise Bhd, and Mah Sing Group Bhd as top picks for their direct exposure and potential upside from the unfolding JS-SEZ development.
“While most of the large Malaysian property developers have landbank in the JS-SEZ, Sunway stands out as MRT Corp’s partner to develop the RM2.6bil Transit Oriented Development (TOD) adjacent to the Bukit Chagar RTS Link station,” said CIMB Research.
The project not only unlocks long-term value for Sunway’s property division, but also bolsters prospects for its construction arm, Sunway Construction Group Bhd (SunCon), which has secured a RM1.5bil building contract under the TOD, it added.
Another frontrunner is UEM Sunrise, which could benefit significantly from the successful commercialisation of its memorandum of understanding (MoU) with GuocoLand (M) Bhd.
“This would help unlock the long-term value of UEM Sunrise’s development pipeline in Johor, particularly the group’s 1,136-acre industrial landbank that has undergone a rezoning exercise,” CIMB Research explained.
IJM is also viewed as a strong contender to participate in future infrastructure rollouts, having already built a track record as one of the main contractors for the RTS Link.
“We proffer that IJM and Sunway (through SunCon) could emerge as the leading candidates when the bidding process for work packages under the upcoming Johor e-ART project commences,” said CIMB Research.
The brokerage also spotlighted Mah Sing, noting that more than half of its landbank – around 1,172 acres – is in Johor.
“Registration of interest for Mah Sing’s latest property project in Johor, M Minori, is scheduled to commence in the second quarter of 2025,” it said.
On the materials front, CIMB Research pointed to Malayan Cement Bhd as a downstream beneficiary of the expected ramp-up in construction activity within the JS-SEZ.
“Malayan Cement would gain from increased cement demand in Johor, being the sole integrated cement producer in the region via its Pasir Gudang facility,” it said.
While the JS-SEZ remains a work in progress, recent moves suggest a fast-accelerating timeline.
The establishment of the Invest Malaysia Facilitation Centre-Johor in late February has already reduced investment proposal lead times by nearly 10 months.
Singapore, too, has responded with a joint project office led by key agencies including Enterprise Singapore and the Singapore Economic Development Board.
Further underlining investor confidence, CIMB Research itself has pledged RM10bil in financing to support businesses expanding into the JS-SEZ.
The financing facility is expected to accelerate growth within the JS-SEZ and launch the group’s Asean Financial Passport to strengthen the region’s value proposition.
As infrastructure projects such as the Johor Baru–Singapore RTS Link and the RM7bil to RM8bil Johor e-ART system gather pace, CIMB Research believes the impact will spill over into logistics and construction-linked sectors.
The e-ART project, currently at the request for proposal stage, will serve as a vital last-mile connector, complementing the RTS Link scheduled to begin operations by end-2026.
Sustainability is another key theme that CIMB Research highlighted, citing UEM Sunrise’s renewable energy park in Gerbang Nusajaya and the ongoing development of Equalbase Sunway 103 – a carbon-neutral commercial zone in Iskandar Puteri – as tangible environmental, social and governance-driven initiatives.
“The JS-SEZ is an emerging engine of growth. With clear public-private coordination and high investor interest, early exposure via construction and property-related counters offers a promising way to capture long-term value,” CIMB Research concluded.
