JS-SEZ to bolster Asean supply chain, drive regional innovation
KUALA LUMPUR: The Johor-Singapore Special Economic Zone (JS-SEZ) is poised to play a key role in enhancing Asean's supply chain efficiency and resilience, thanks to its strategic location, said CIMB Securities Sdn Bhd.
Seen as a key driver of Asean's shift from globalised to regionally integrated supply chains, the JS-SEZ is expected to transform Malaysia and Singapore from conventional manufacturing centres into thriving hubs of innovation and technology.
CIMB Securities noted that 80 per cent of Johor's approved investments in 2024 were located within the JS-SEZ, including RM23 billion worth of new projects recorded in April 2025 alone—building on the RM27.4 billion in investments secured during the first quarter of the year.
"About 560 investment schemes from over 700 projects approved for Johor by the Malaysian Industrial Development Authority (MIDA) in 2024 were in the JS-SEZ.
"Of these, more than 50 projects are in the high-value, high-growth sectors, such as medical and semiconductor industries," it said in a note after attending the JS-SEZ joint business and investment forum on April 21-22.
To accelerate development, CIMB Securities said Malaysia established the Invest Malaysia Facilitation Centre-Johor (IMFC-J), cutting investment lead times by 10 months. Singapore, meanwhile, has formed a joint agency to aid company expansion into the zone.
The firm also highlighted the importance of accelerating infrastructure development in the region, including the JB-Singapore RTS Link, which is expected to launch by end-2026, and the upcoming Johor e-ART transit system that is drawing strong investor interest.
CIMB Securities noted that property and construction players such as Sunway, IJM, UEM Sunrise and Mah Sing are set to benefit.
Sunway, for instance, is developing an RM2.6 billion transit-oriented development near the Bukit Chagar RTS station.
Meanwhile, UEM Sunrise and GuocoLand's memorandum of understanding could unlock the long-term value of UEM Sunrise's development pipeline in Johor, particularly the group's industrial land bank.
According to the firm, UEM Sunrise is building a 16-hectare renewable energy park at its proposed industrial park in Precinct 2 of Gerbang Nusajaya.
At Sunway City Iskandar Puteri, the first warehouse at the carbon-neutral Equalbase Sunway 103 commercial zone, with an indicative gross development value of RM8 billion, is already under construction.
"In our view, these sustainable-friendly initiatives are in tandem with Malaysia's aspirations to promote green industrial parks that supply renewable energy, for which roughly 100 companies are keen to lend their expertise," CIMB Securities added.
To retain and attract talent, the firm said an attractive income tax rate of 15 per cent over 10 years is offered for knowledge workers employed in the JS-SEZ.
This forms part of the Johor government's efforts to fill the 100,000 quality jobs expected to be curated under the JS-SEZ, in addition to offering attractive starting salaries of RM4,000–5,000 a month.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
6 hours ago
- New Straits Times
AMMB's FBM KLCI comeback expected to draw index flows
KUALA LUMPUR: AMMB Holdings Bhd's return to the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to provide a near-term lift to its share price and trigger passive fund flows, said CIMB Securities. The financial group will replace Hong Leong Financial Group Bhd (HLFG) in the 30-stock FBM KLCI from June 23 following FTSE Russell's semi-annual review, after HLFG failed to meet the required trading liquidity threshold. CIMB Securities estimates that AMMB will command a weightage of 2.7 per cent in the FBM KLCI, nearly four times higher than HLFG's 0.7 per cent. This larger presence is likely to prompt buying interest from index-tracking funds. "Historically, 10 out of 13 stocks added to the FBM KLCI since June 2020 have posted gains ranging from 0.3 per cent to 4.6 per cent in the week following their inclusion. "We anticipate similar momentum for AMMB in the near term," CIMB Securities analysts Ivy Ng Lee Fang and Lim Yue Jia said in a research note. According to them, HLFG's exit was due to its failure to maintain a monthly median daily trading volume of at least 0.04 per cent of its issued shares, post-investability weightings, in eight out of the past 12 months. Beyond the FBM KLCI, further ripple effects are also expected across other FTSE Bursa Malaysia indices, which CIMB Securities said could spur portfolio rebalancing by fund managers. "We anticipate some portfolio repositioning by fund managers in response to the upcoming changes in the FBM KLCI, FBM Mid 70 and FBM Hijrah Shariah indices. "This is likely to benefit stocks that are newly included in these indices, while potentially exerting short-term selling pressure on those that are removed," the firm said. Broader shifts in Mid-70, Shariah and EMAS indices In the FBM Mid 70 Index, four companies, Kerjaya Prospek Group Bhd, SAM Engineering & Equipment (M) Bhd, Sunway Real Estate Investment Trust (REIT) and Tropicana Corp Bhd, have been added. They replace AMMB, Bermaz Auto Bhd, D&O Green Technologies Bhd and WCE Holdings Bhd. Sime Darby Property Bhd will join the FBM Hijrah Shariah Index, replacing Scientex Bhd. The Hijrah index tracks the largest Syariah-compliant stocks by market capitalisation. Meanwhile, the FBM EMAS Shariah Index will see 16 additions and 30 deletions, including new entrants such as IOI Properties Group Bhd and KPJ Healthcare Bhd, and the removal of companies like Careplus Group Bhd, Citaglobal Bhd and CPE Technology Bhd. The FBM Small Cap Index will experience the most significant churn, with 17 additions and 34 deletions. Notable entries include Avangaad Bhd, Azam Jaya Bhd and BM Greentech Bhd. "These index changes are not just technical reshuffles, they can significantly influence investor flows, especially from exchange-traded funds and index-linked funds," said CIMB Securities. The rebalancing will take effect after the market closes on June 20, and will be reflected from the start of trading on June 23. The next review is scheduled for December 2025. CIMB Securities maintains a year-end FBM KLCI target of 1,560 points. Its top large-cap picks include CelcomDigi Bhd, Gamuda, Public Bank Bhd, RHB Bank Bhd, Tenaga Nasional Bhd, Maxis Bhd, IOI Corp Bhd, IJM Corp Bhd and 99 Speed Mart Retail Holdings Bhd.
New Straits Times
2 days ago
- New Straits Times
Hafizuddin: Future-proof homes in demand as buyers look beyond aesthetics
KUALA LUMPUR: Analysts expect continued demand for premium landed homes, particularly within growth corridors like Cyberjaya in the Greater Klang Valley, as homebuyers increasingly prioritise space, privacy, and lifestyle-oriented amenities. "With interest rates stabilising and consumer confidence on the rise, the outlook for upscale landed developments remains optimistic heading into the second half of 2025," said one market analyst. Reflecting this sentiment, UEM Sunrise Bhd reported a strong response during the first day of its sales preview for Allegro, a premium freehold landed development within the company's Symphony Hills township in Cyberjaya. The preview, held on May 31, saw 23 out of 68 semi-detached villas taken up, representing a 34 per cent take-up rate and generating RM46.8 million in sales. This marks a robust start toward the development's total gross development value (GDV) of RM142 million. The performance of Allegro underscores a resilient appetite for high-quality, landed homes in gated, low-density communities, especially those integrated with lifestyle infrastructure. Demand is being driven by rising household affluence, a growing preference for multi-generational living, and a shift toward future-proof, wellness-centric homes in the post-pandemic landscape. "This encouraging response reflects a growing demand for premium homes in established, lifestyle-driven townships like Symphony Hills. Today's buyers are more discerning," said Hafizuddin Sulaiman, officer-in-charge and chief financial officer of UEM Sunrise. "They seek homes that go beyond aesthetics to offer future-proof spaces, multigenerational comfort and a deeper connection to nature." Allegro comprises 68 low-density, gated villas, with generous built-ups ranging from 2,866 to 5,115 sq ft. Each unit is thoughtfully designed for extended families, featuring resort-style bathrooms, EV-ready car porches, and private lifts in selected homes. Slated for completion in 2027, Allegro forms part of UEM Sunrise's ongoing initiative to revitalise the 98-acre Symphony Hills township, first launched in 2011. As part of this revitalisation, UEM Sunrise will reopen the Opera House clubhouse this month with upgraded lifestyle amenities including a swimming pool, poolside café, mini mart, gymnasium, pickleball courts, and a multipurpose hall.
New Straits Times
3 days ago
- New Straits Times
Johor records RM27.4bil FDI in Q1, fuelled by JSSEZ
KOTA TINGGI: The impact of the Johor-Singapore Special Economic Zone (JS-SEZ) is already being felt, with Johor recording RM27.4 billion in foreign direct investment (FDI) in the first quarter of this year. Johor Menteri Besar Datuk Onn Hafiz Ghazi said this was a substantial increase from RM4 billion achieved in the same period last year. "Last year, in the first quarter of 2024, we only achieved RM4 billion in FDI. That means, if you compare quarter to quarter, there's an increment of RM24 billion just within one year, and this is just the beginning," he said. He noted that the federal government has allocated about RM5 million to upgrade infrastructure within the SEZ area, which includes Desaru Coast, to ensure they are world-class standards. "As you can see, we've started widening highways, including the North-South Expressway, and upgrading the Senai-Desaru Expressway. The Rapid Transit System is also progressing and is expected to be operational by 2027," he added. Onn Hafiz made these remarks during the signing ceremony of a new hotel management agreement and a press conference to announce the appointment of a new operator for Desaru Coast here, today. The ceremony marked the transition of Desaru Coast's flagship luxury resort from One&Only to Mandarin Oriental, a move expected to boost the destination's appeal to high-net-worth travellers from Singapore and the wider region. Meanwhile, the JS-SEZ is a landmark bilateral initiative aimed at strengthening economic integration, connectivity, and cooperation between Malaysia and Singapore, particularly through Johor. A Memorandum of Understanding was signed in January 2024, followed by a formal Agreement of Cooperation in January 2025. Onn Hafiz said to ensure the success of the SEZ, the government is also focusing on human capital development through the Johor Talent Development Council. "We're working with the hotel industry to ensure our people receive training that meets industry standards. Whatever we do, it must have positive impact on our people. Out of 1,500 employees in Desaru Coast, 70 per cent are Johoreans," he added.
