Joint task force for Iskandar could boost shares of Malaysian developers: Maybank
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Mia Pei
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THE potential establishment of a Johor-Singapore special economic zone (JS-SEZ) by a new joint task force between Singapore and Malaysia could lift the share prices of Malaysian developers, especially in the high-rise residential segment, said Maybank Malaysia in a report on Monday (Jul 17).
The special economic zone in Iskandar Malaysia is expected to create more job opportunities and commercial activities in the area through investments from Singapore. This will in turn drive demand for both residential and commercial properties, and help Malaysian developers’ reduce unsold inventory, particularly in the high-rise building sector, said Maybank analyst Wong Wei Sum.
Malaysian property developer UEM Sunrise, which has 70 per cent of its gross development value concentrated in Johor, could be the main beneficiary. Other developers that could see their share prices rising include Sunway Group, Eco World Development and AME Elite Consortium.
Maybank maintains a neutral stance on the Malaysian real estate market while expecting further details, Wong added.
The new task force between Singapore and Malaysia was formed last Friday at the 16th meeting of the Malaysia-Singapore Joint Ministerial Committee for Iskandar Malaysia (JMCIM) to study the development of JS-SEZ.
JS-SEZ is expected to drive sustainable growth for both nations in areas such as industrial cooperation, environment, innovation, tourism, immigration and transportation links.
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Singapore’s Ministry of Trade and Industry and Malaysia’s Ministry of Economy will lead the task force, whose immediate priority would be to draft the terms of reference and broad areas of collaboration.
Updates on the task group’s progress will be shared when the two nations meet for the next Singapore-Malaysia Leaders’ Retreat later this year, and the JMCIM is scheduled to meet next year in Malaysia.
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