High-impact projects such as the Johor-Singapore Special Economic Zone (JS-SEZ) and Special Financial Zone (SFZ) in Forest City can spur Johor’s economy to outpace that of other states in the next one to two years, said Prime Minister Datuk Seri Anwar Ibrahim.
“Both JS-SEZ and SFZ will ensure a more rapid growth (for Johor). They are still being formulated but will help in accelerating the economic growth,” he said.
“We are establishing a special economic zone that can develop a close relationship with Singapore and we are setting up a special financial zone in Forest City. These indicate that Johor will record a very rapid growth,” he said.
This week, Maybank IB noted that SEZ initiatives focused on better cross-border integration, FDI facilitation, talent development and entrenching renewables should catalyse equity valuations in SG and MY. Anchored under five themes, they were optimising hinterland access; (b) stimulating North – South supply chain shifts; fast-tracking Net Zero transition; expanding infrastructure and property investments; and broadening the SME economy. In our view, the SEZ could create a regionally differentiated value proposition by its combination of capital access, infrastructure and policy stability.
It also said, multiple sectors stand to benefit from the projects as banks are key given already entrenched cross-border positioning, enabling share gain from higher wholesale and retail credit demand and fees from trade. Increased infrastructure investments as well housing and commercial facilities demand could be a boon to SG and MY property developers and REITs. Data centre establishment should be positive for SG & MY telecom as well as SG and MY electronics manufacturing players. Increased renewable capacity should spur SG industrials and MY renewables. Easier travel could ease labour pressures and widen the mass market for SG gaming.
