Barisan Nasional (BN) has emerged with a stronger mandate in the 16th Johor state election after winning 48 of the 56 seats contested, strengthening expectations for policy continuity and the accelerated implementation of key investment and infrastructure projects in the state.
According to CIMB Research, BN improved on its performance in the 2022 state election by increasing its seat tally from 40 to 48 seats, comfortably retaining its two-thirds majority in the Johor State Assembly.
Pakatan Harapan (PH) secured the remaining eight seats, comprising six won by the Democratic Action Party (DAP), one by Parti Keadilan Rakyat (PKR) and one by Amanah.
Perikatan Nasional (PN), Bersama and MUDA failed to win any seats.
Voter turnout also improved significantly, rising to 69.6%, compared with 54.9% in the previous state election held in 2022.
BN captured 59.7% of the popular vote, equivalent to approximately 1.12 million votes, while PH garnered 32.6%, or around 611,000 votes.
Result exceeds expectations
CIMB Research said the outcome exceeded pre-election expectations, where market observers had broadly anticipated BN winning between 40 and 45 seats.
While the brokerage expects limited immediate impact on financial markets, it believes the stronger electoral mandate reinforces confidence in the state’s policy direction and investment agenda.
“The stronger mandate reinforces expectations of policy continuity and supports the continued implementation of Johor’s investment and infrastructure plans,” the research house said.
Focus shifts to JS-SEZ and transport projects
The firm expects greater visibility over several flagship projects, including the formal unveiling of the Johor-Singapore Special Economic Zone (JS-SEZ) blueprint, which is expected in the fourth quarter of 2026.
It also anticipates continued progress on the RM7 billion Johor Elevated Autonomous Rapid Transit (E-ART) system, one of the state’s major public transport initiatives.
However, CIMB noted that the timelines for other cross-border infrastructure projects, including a potential extension of the Rapid Transit System (RTS) Link to Iskandar Puteri and the proposed Kuala Lumpur-Singapore High-Speed Rail (HSR), remain subject to further announcements by the Malaysian and Singapore governments.
The research house expects the rollout of the JS-SEZ blueprint and the planned commencement of RTS services in early 2027 to provide medium-term support for demand across Johor’s landed residential, industrial and logistics property segments.
Nevertheless, it maintained a cautious stance on the state’s high-rise residential market, citing an estimated 61,000 condominium and apartment units scheduled for completion between 2030 and 2031, which could weigh on supply-demand dynamics.
Property developers poised to benefit
Among listed companies, CIMB continues to favour UEM Sunrise Bhd as its preferred Johor property exposure, supported by the group’s extensive landbank in Iskandar Puteri.
The brokerage also identified Eco World Development Group Bhd, Mah Sing Group Bhd, Sunway Bhd, S P Setia Bhd and Malayan Cement Bhd as companies well positioned to benefit from Johor’s expanding investment pipeline and infrastructure development.
Attention turns to Negeri Sembilan
The Johor election marks Malaysia’s first state election since the Sabah state election in November 2025, where the Gabungan Rakyat Sabah-led coalition retained control of the state government.
Political attention will now shift to the Negeri Sembilan state election on Aug 1, while the country’s 16th General Election (GE16) must be held by February 2028.
