KUALA LUMPUR: Maybank Investment Bank (IB) is optimistic the Johor-Singapore Special Economic Zone (JSSEZ) which will create more job opportunities and business in the Iskandar Malaysia area, leading to increased demand for properties.
While no further details were revealed on the JSSEZ, the memorandum of understanding (MOU) signed yesterday reaffirms the joint commitment between Malaysia and Singapore to strengthen economic cooperation.
"This will also help drive demand for both residential and commercial properties, with the higher population requiring housing," said the research house.
Having said that, Maybank IB believes the positives have been priced in, and share prices of property stocks with landbank in Johor have run ahead of their fundamentals.
"As such, we advocate for investors to take some profit and consider switching to stocks with landbank in Penang for an exposure to the upcoming Bayan Lepas LRT project, where its alignment is expected to be finalised by the first half of 2024 (1H2024), said Maybank IB in a note today.
Maybank IB maintains buy calls for SP Setia Bhd properties and Tambun Indah Land Bhd.
Malaysia and Singapore yesterday signed a MOU to work on a JSSEZ to strengthen economic connectivity between Johor and Singapore.
Maybank IB also said that the JSSEZ will target sectors related to electronics, financial services, business-related services and healthcare.
Both countries will work towards a full-fledged agreement and provide an update at the 11th Malaysia-Singapore Leaders' Retreat, probably in the second half of 2024.
Elsewhere, Malaysia and Singapore will also work on several initiatives that build towards the JSSEZ.
Location of the JSSEZ remains unknown while Maybank IB suspect the JSSEZ could be located at Sedenak and/or Iskandar Puteri areas.
There is a possibility that the JSSEZ could involve the whole Iskandar Malaysia region that spans 4,749km2 covering Johor Bahru, Kulai, Iskandar Puteri, Pasir Gudang and part of Pontian, benefiting all the land owners in these regions and leveling the playing field for all land owners.