HLIB Research said the long-term plans for Woodlands, Kranji and Sembawang, forming Singapore’s northern corridor, underscored how the growth region “is a two-sided initiative”.
PETALING JAYA: The redevelopment plans for Singapore’s northern coast across from the southern tip of Johor is expected to have positive spillover effects for the Johor-Singapore Special Economic Zone (JS-SEZ).
Additionally, these plans will also reinforce the integration of the growth areas on both sides of the border.
Hong Leong Investment Bank (HLIB) Research, which maintained an “overweight” rating on Malaysian property developers active in the JS-SEZ, said the long-term plans for Woodlands, Kranji and Sembawang, forming Singapore’s northern corridor, underscored how the growth region “is a two-sided initiative”.
“Some of the expansion plans include a five-fold expansion of the Woodlands checkpoint, seamless rapid transit system (RTS)-mass rapid transit (MRT) integration, new industrial spaces, housing projects and a rejuvenated northern waterfront,” it said.
It added that this translatesd into stronger residential appeal for workers commuting daily, industrial spillovers into logistics and manufacturing as well as rising retail and tourism demand.
Besides the cross-border transportation links between the RTS and MRT, there would also be a seamless transfer to the MRT Thomson-East Coast Line in which new “flexible” industrial spaces targeted at businesses seeking to tap into the JS-SEZ will be introduced.
This is coupled with new public housing projects totalling 4,000 flats near Admiralty Park, and additional residential developments along the Woodlands waterfront.
“Singapore also has plans to rejuvenate adjacent areas such as Kranji and Sembawang. Together, the three districts will anchor a vibrant new northern waterfront destination, reshaping the economic and social profile of Singapore’s northern gateway,” the research house said.
It noted that with faster checkpoint clearance and direct RTS-MRT integration, daily commuting for workers who work in Singapore and stay in Johor becomes more practical.
It noted that property developers with Johor exposure in housing, industrial and retail segments would benefit from this long-term plan.
Its top picks for Malaysian property stocks with “buy” calls include IOI Properties Group Bhd
with a target price (TP) of RM4.05, OSK Holdings Bhd with a TP of RM2.13, Sunway Bhd with a TP of RM5.90 and Sime Darby Property Bhd with a TP of RM2.05.
