Johor-Singapore SEZ may turn into multi-growth story like Shenzhen: JP Morgan

JP Morgan projects that the Johor-Singapore Special Economic Zone (SEZ) will be a long-term growth driver, akin to Shenzhen's development over 45 years.

The SEZ, which officially launched with a Memorandum of Understanding in January, is expected to benefit from regulatory harmonization, tax incentives, and a favorable policy environment.

High-growth sectors such as real estate investment trusts, infrastructure, healthcare, renewable energy, and technology present significant opportunities within the SEZ.

The investment bank notes that the rising property share prices, particularly in companies with large land banks in Johor, reflect investor optimism.

Additionally, improved connectivity, starting with the Rapid Transit System (RTS) Link, is seen as crucial for unlocking the SEZ's full economic potential.

A legally binding Memorandum of Agreement is anticipated by September, with fiscal incentives to be detailed in Malaysia's 2025 Budget.

Article by Asila Jalil for NST. Read more here or in the PDF below.