JOHOR BARU: Construction firms in Johor have recorded strong growth in recent years as the state attracts more investors, says Johor Master Builders Association.
Its president Dr Kong Weng Keong said members began noticing a sharp rise in demand in 2023, and the momentum has continued ever since.
“Our members are seeing more construction projects coming in, and the growth has been significant, especially since the Johor-Singapore Special Economic Zone was mooted.
“Two key areas experiencing the most growth are high-rise residential developments and data centres,” he said in an interview.
Kong highlighted that data centre projects are expanding in Gelang Patah, Sedanak, Southern Industrial and Logistics Clusters and Kempas.
“For high-rise residential projects, demand is focused within a 10km to 15km radius of downtown Johor Baru. Beyond these, we are also seeing upcoming projects for factories and landed properties,” he said.
He added that the trend is likely to accelerate in the coming years, boosted by mega infrastructure projects such as the Electric Train Service (ETS) and the Rapid Transit System (RTS) Link.
“I believe the push from the Johor Mentri Besar and Invest Johor’s proactive efforts in bringing in investments are among the main factors contributing to the growth.
“Federal Government support and endorsements from Singapore have also helped to improve things,” he said.
However, Kong cautioned that the rapid expansion is not without challenges as it has exposed manpower shortages, which could worsen if not addressed.
“The shortage became apparent early this year, and it risks becoming a serious issue for the industry as development picks up pace.
“We hope the government can step in before it escalates,” he said, noting that a majority of construction workers are from Bangladesh.
