KUALA LUMPUR: Fresh newsflow on the Johor-Singapore Special Economic Zone (JS-SEZ) has boosted interest in the property sector – particularly in Johor-centric property names – as the Johor state elections draw nearer, says CIMB Research.
In a research note, CIMB Research further noted that the JS-SEZ investment blueprint and master plan are being reviewed by the National Investment Council before being tabled to the Cabinet for final approval.
Initially slated for launch on March 30, 2026, the JS-SEZ is now set to be rolled out by the first half of financial year 2026 following further refinements to its content.
“While the JS-SEZ is still a work in progress, we opine that the crystallisation of a formalised agreement marks another significant step that strengthens cross-border economic integration between Malaysia and Singapore.
“Broadly, the JS-SEZ is projected to generate RM260bil in gross domestic product for Johor by 2030, and we expect this wealth creation to trickle down into the state’s property sector,” said CIMB Research.
Beyond the JS-SEZ, the research house said the property sector’s sentiment-driven re-rating has been boosted by investor repositioning into stocks seen as potential beneficiaries of the MY Value Up programme launched on April 20, 2026, although details of its mechanism remain unclear.
“Among property stocks or companies with real estate exposure within our coverage, Gamuda, IJM Corp, Sime Darby Property
, SP Setia, Eco World and Sunway meet the minimum RM4bil market cap requirement, securing their place in the list of 88 companies that have been selected for this voluntary programme,” it added.
However, CIMB Research noted that further delays to the signing of the JS-SEZ’s formal agreement could dampen investor appetite.
Additionally, a protracted war in West Asia could lead to higher construction costs, supply chain disruptions, and curtail inbound investments into the JS-SEZ region, it added.
“Domestically, investment decisions or approvals may only be finalised upon the conclusion of the upcoming Johor state elections.
“It is worth noting that the incumbent state government’s term is scheduled to end in April 2027,” said CIMB Research. — Bernama
