The five sectors listed by MIDF Research are property, construction, power utilities, oil and gas (O&G), and transport and logistics.
Property players such as Mah Sing Group Bhd and Matrix Concepts Holdings Bhd are expected to benefit from the recovery in buying sentiment and catalysts from the JS-SEZ and Johor Bahru-Singapore Rapid Transit System Link (RTS), it said in a note.
The research house said construction firms including Gamuda Bhd and IJM Corp Bhd will likely gain from major infrastructure projects such as the RTS, the proposed Johor Bahru light rail transit (JB LRT), and data centre projects.
It added power utilities companies such as Samaiden Group Bhd and Sunview Group Bhd will gain from Johor’s growing data centre sector.
Adjacent to a major international maritime trade route, the JS-SEZ is expected to positively impact the energy industry, particularly the O&G midstream sector.
Pasir Gudang, a hub for shipbuilding and maritime solutions, along with the Johor and Tanjung Langsat ports, will serve as key nodes for shipping vessels passing through the Tebrau Strait including cargo ships, oil tankers, and liquefied natural gas (LNG) carriers, it added.
Among the O&G counters, MIDF favoured Malaysia Marine and Heavy Engineering Holdings Bhd (MHB), citing its strong order book, diverse portfolio, and strategic partnerships with major oil and gas companies.
Under the transport and logistics sector, it said Swift Haulage Bhd could benefit from its involvement in container haulage and freight forwarding operations in Johor.
The JS-SEZ will also lead to increased economic activity within Johor, creating more business opportunities and better employment prospects, MIDF said.
“The employment opportunities will create a diaspora towards the JS-SEZ region, which will potentially spur consumption within the region.
“We think this will trickle down to the small and micro businesses growing in the region, as the population is expected to increase due to the pickup in business activities,” it added.
Meanwhile, Maybank Investment Bank said there was potential for the JS-SEZ to leverage Singapore’s global finance and logistics expertise, combined with the state’s competitive advantages in land, labour, and energy.
“This could offer a differentiated proposition, especially for supply chains seeking alternatives to North Asia amid ongoing US-China trade tensions,” it said.
CIMB Securities said IJM Corp Bhd and Sunway Bhd may be strong contenders for works under the Johor Bahru LRT or autonomous rapid transit projects being considered by the state.
The research house also recommended Malayan Cement Bhd and Ann Joo Resources Bhd as alternatives for potential multi-year building materials order flows from the JS-SEZ.
The leaders of Malaysia and Singapore announced the agreement on the special economic zone linking the two nations’ border region yesterday.
The pact was formalised during a visit to Malaysia by Singapore prime minister Lawrence Wong where he met with Prime Minister Anwar Ibrahim.
The two nations pledged to promote and facilitate 100 projects within the first 10 years. Officials in Johor previously said they expect the zone to create as many as 100,000 new jobs and add US$26 billion (RM117.1 billion) per year to the Malaysian economy by 2030.
Spanning over 3,500 sq km, the JS-SEZ is more than four times larger than Singapore and nearly twice the size of China’s Shenzhen, the city bordering Hong Kong whose success Malaysia is hoping to emulate with the SEZ.