KUALA LUMPUR: With Johor entering a phase of high growth next year and beyond, the Johor 2024 Budget is a future-proofing strategy that looks good for the state's main industries, including real estate.
While a number of catalytic projects are almost complete, watchers of the market point out that in order to provide a smooth and efficient way to create social and economic growth in Johor, complementary hard and soft infrastructures must also be prepared.
Some much-anticipated items include the Johor-Singapore Special Economic Zone (JS-SEZ) and Special Financial Zone (SFZ) Memorandum of Understanding (MoU) between Singapore and Malaysia, set to be signed on Jan 11 next year.
Johor Menteri Besar Datuk Onn Hafiz Ghazi said on Thursday that to complete the state's ecosystem as a primary investment destination in the region, prompt execution of the Kuala Lumpur-Singapore high-speed rail (KL-SG HSR) and light rail transit (LRT) is required.
According to Onn Hafiz, Johor wants the KL-SG HSR project to be revived soon to further establish the state's economic position in the region.
On Dec 13, 2016, bilateral agreements were signed between Malaysia and Singapore for the 350-kilometer KL-SG HSR project. But in September 2018, the project, which had been valued at RM110 billion, was shelved until December 31, 2020, as agreed upon by all parties.
Both nations jointly declared the project's termination on January 1st of last year due to the inability to come to a consensus on the modifications suggested by Malaysia and the fact that the agreement had expired on Dec 31, 2020.
The real estate industry in Johor and the entire country stands to benefit from the revival of the KL-SG HSR project, according to Sr. Samuel Tan, executive director of KGV International Property Consultants.
He told NST Property that Johor's economy will increase significantly as a result of the JS-SEZ, SFZ, and KL-SG HSR, enhancing all industries.
Other initiatives under the budget include a RM2 million allocation for the realisation of the Ibrahim International Business District (IIBD) as an international commercial hub. Coronation Square is the first phase of this initiative.
Another RM2.2 million is allocated for the Investment Promotion Mission (Friendly Johor 3.0 and Johor Go Global 3.0) to reinforce its investment network for investments.
To achieve this, RM500 million is set aside to prepare the mapping of industrial areas and zoning with the latest investment data under the Johor insight initiative.
Tan said the Johor Smart City is another important initiative, in line with the target to reach developed status by 2030.
"The formation of a single border agency is a creative approach to ensuring seamless connectivity to and from Johor Bahru to other countries. The free flow of people and goods bodes well for the economic well-being of the state, as it will attract investors," he said.
Large sums are also allocated to improve access and road connectivity, including new roads such as Jalan Pintas Mersing, Jalan Felda Nitar-Persimpangan Air Merah, and the Siapu Junction at Mersing.
"Improving 25,210 km of roads is a tall order that will enhance the quality of life for many," he said.
To prepare for Visit Malaysia Year 2026, many initiatives are planned for the expected 12 million tourists to Johor.
RM20 million is budgeted to improve tourism infrastructure, such as the Jetty Improvement and Sungai Ular Bridge at Taman Negara and Kukup Island.
"This proactive initiative should be lauded. In this aspect, we are all hoping that the revised MM2H will be user-friendly in attracting the right segments to the state," Tan said.
Developing the affordable housing segment in Johor
A market watcher said that even though Johor is investing heavily in infrastructure and attracting foreign direct investments, the state is equally committed to growing the market for affordably priced homes.
The state has set aside more than RM300 million in the Johor 2024 Budget to assist residents who fall within the B40 (lowest 40 per cent) category.
"For the B40 group, who will be able to increase their standard of living, this is a wonderful start to 2024," he told NST Property.
Some RM72 million is allocated for the Public Housing Programme (PPR), with 300 units planned in Larkin. Another 600 units will be built in Kluang.
Around RM64.25 million is budgeted for the maintenance and repairs of the PPR and other affordable housing.
The Johor Housing Corporation is tasked with building 30,000 units of Rumah Mampu Milik (RMM) by 2026. To date, the state has successfully obtained commitments from private developers to build 5,123 units of the RMM by 2024.
Some RM3 million is allocated to assist around 3,000 people in moving into their new homes.
Another initiative is the Residensi Bangsa Johor (RSJ), where 2,634 units will be built in Iskandar Puteri. Another 147 units will be built in Tangkak, 140 in Yong Peng, and 50 in Simpang Renggam.
Some 130 units of Rumah Transit Bangsa Johor (RTBJ) will be built in Taman Tasik Indah, Kluang, and Taman Mutiara Rini, Johor Bahru.
Further, 120 units of Rumah Kasih Johor (RKJ) will be developed throughout Johor.
RM141.1 million is set aside for the rejuvenation of public flats in the state.
Another RM13.8 million is allocated for the repairs of houses for the poor, while another RM10 million is budgeted for crisis relief and emergencies under the People Housing Initiative.