[SINGAPORE] The upcoming Johor-Singapore Special Economic Zone (JS-SEZ) is expected to anchor the growth of industrial properties in Malaysia, with the segment set to remain the “key growth driver” of the country’s property sector, Maybank Securities analyst Wong Wei Sum wrote in a report on Thursday (Jan 8).
The Johor-Singapore Rapid Transit System (RTS), which should be operational by the end of 2026, as well as the potential listing of Malaysian property developer SP Setia by next year, could also renew interest in Johor-exposed stocks, she added.
The RTS Link is said to be able to transport up to 10,000 travellers an hour in each direction.
Nevertheless, the Maybank analyst maintains a “neutral” rating on Malaysia’s property sector, as she believes that the positives of JS-SEZ and the RTS have largely been priced in.
Rising competition
Wong said industrial parks have emerged as a key growth segment in Malaysia’s property market since the Covid-19 pandemic.
Their growth is, among other reasons, due to the sharp rise in e-commerce and logistics demand since the pandemic, stronger foreign investment inflows into Malaysia amid trade tensions between the US and China, as well as supply-chain reconfiguration.
Demand for data centres has also lifted sentiment towards the industrial segment, said Wong.
However, competition is intensifying within the industrial space.
“A broader set of players is entering the space, including traditional developers, plantation land owners and state governments under initiatives such as the 13th Malaysia Plan,” said the Maybank analyst, referring to Malaysia’s socio-economic roadmap for 2026 to 2030.
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