Johor-Singapore Special Economic Zone (JS-SEZ) – Key Stocks & ETFs to Watch

23 Jun 2025

By Danish Lim, Senior Investment Analyst for Phillip Nova

*Note that all figures shown are in MYR unless otherwise stated

From a big-picture perspective, first-leg beneficiaries of the JS-SEZ are likely to be banks, construction, and property firms, who will benefit from initial investments and infrastructure development. In the longer-run, consumer stocks could benefit from sustained economic growth and wealth spillover effects.

ETF Watchlist:

• iShares MSCI Malaysia ETF (AMEX: EWM), Expense Ratio: 0.50% — Down -1.46% since 7 January (MYR terms). Tracks the MSCI Malaysia Index

• FTSE Bursa Malaysia KLCI ETF (KLSE: 0820EA), Expense Ratio: 0.98% — Down -3.00% since 7 Jan. Tracks 30 biggest listed companies that collectively represent the Malaysian stock market.

Shariah Compliant:

Eq8 Dow Jones Islamic Market Malaysia Titans 25 ETF (KLSE: 0821EA), Expense Ratio: 0.54% — Down – 4.50% since 7 Jan. Provides exposure to 25 largest listed Shariah-compliant companies listed on Bursa Malaysia
Eq8 MSCI Malaysia Islamic Dividend ETF (KLSE: 0824EA), Expense Ratio: 0.69% — Down -7.98% since 7 Jan. Tracks shariah-complaint securities with higher than average dividend yield that are deemed both sustainable and persistent by MSCI.

Stocks Watchlist:

Property Development:

Rationale: The JS-SEZ will drive higher land values and demand for mixed-use developments. Proximity to Singapore and enhanced connectivity (via RTS Link or Johor LRT/ART) will make Johor properties more attractive.
As FDIs pour into the SEZ, enterprises will require commercial spaces while employees will demand residential spaces. Affordable housing players like Lagenda and industrial developers like AME Elite can also benefit.
Beneficiaries: Developers with significant landbanks near flagship SEZ zones (e.g., Iskandar Puteri, Kulai) will benefit.
- UEM Sunrise (KLSE: 5148, BBG Consensus 12M Tgt Px: MYR 0.87) │ IOI Properties (KLSE: 5249, BBG Consensus 12M Tgt Px: MYR 2.44) │ EcoWorld (KLSE: 8206, BBG Consensus 12M Tgt Px: MYR 2.21) │ Mah Sing (KLSE: 8583, BBG Consensus 12M Tgt Px: MYR 1.88) │ Sunway Bhd (KLSE: 5211, BBG Consensus 12M Tgt Px: MYR 5.17) are well-positioned to benefit due to their substantial land banks in SEZ flagship zones.
- AME Elite (KLSE: 5293, BBG Consensus 12M Tgt Px: MYR 1.93): Focus on industrial properties, benefitting from heightened demand for facilities driven by FDIs.
- Lagenda Properties (KLSE: 7179, BBG Consensus 12M Tgt Px: MYR 1.69): Focus on affordable housing with landbanks in Kulai, situated near Sedenak.

Financials:

Rationale: Banks will play a critical role in providing the financing needed for infrastructure and business expansion within the SEZ.
Improved economic activity could also boost cross-border transactions, mortgage activity, and credit card fees. Providing a boost to banks’ non-interest income (NOII).
Beneficiaries:
- Maybank (KLSE:1155, BBG Consensus 12M Tgt Px: MYR 11.01) │ RHB Bank (KLSE: 1066, BBG Consensus 12M Tgt Px: MYR 7.41) │ CIMB Bank (KLSE: 1023, BBG Consensus 12M Tgt Px: MYR 8.22) are likely to see greater demand for wholesale financing, particularly for large-scale projects.

Construction:

Rationale: Infrastructure development is expected to be a cornerstone of the JS-SEZ. Public infrastructure projects like the Johor LRT/ART and other infrastructure developments (e.g. data centre projects) could open up opportunities for contractors.
Beneficiaries:
- Gamuda (KLSE: 5398, BBG Consensus 12M Tgt Px: MYR 5.39) │ Sunway Construction (KLSE: 5263, BBG Consensus 12M Tgt Px: MYR 5.81) both have proven track records in large-scale infrastructure projects, which we think positions them well for JS-SEZ contract wins.
- IJM Corp (KLSE: 3336, BBG Consensus 12M Tgt Px: MYR 3.31) │ Econpile Bhd (KLSE: 5253, BBG Consensus 12M Tgt Px: MYR 0.42) are developers currently involved with the RTS.
- United U-Li Corp Bhd (KLSE: 7133, BBG Consensus 12M Tgt Px: MYR 1.83) could benefit from higher demand for cable support systems in construction. Malayan Cement (KLSE: 3794, BBG Consensus 12M Tgt Px: MYR 6.77) │ Ann Joo Resources (KLSE: 6556, BBG Consensus 12M Tgt Px: MYR 0.89) can also benefit as they provide building materials used in construction.

Utilities & Renewable Energy (RE):

Rationale: The expected influx of investment projects will likely drive up energy demand within the SEZ, including the growing need for RE, as MNCs are increasingly committed to reducing their carbon footprint and complying with regulations.
Electricity trading & RE cooperation: Singapore is aiming to import 30% of its energy from renewable sources by 2035; with Malaysia intending to export up to 300MW of RE to Singapore.
The Corporate Renewable Energy Supply Scheme (CRESS), introduced in Sep 24, enables large corporates to purchase renewable energy directly from independent power producers. CRESS will likely gain stronger traction.
Beneficiaries:
- Tenaga Nasional (KLSE: 5347, BBG Consensus 12M Tgt Px: MYR 16.05), who already signed an agreement with importer Sembcorp Power to supply renewable energy to Singapore. Other beneficiaries include Malakof (KLSE: 5264, BBG Consensus 12M Tgt Px: MYR 0.98) │ YTL Power (KLSE: 6742, BBG Consensus 12M Tgt Px: MYR 4.48).
- BM Greentech (KLSE: 0168, BBG Consensus 12M Tgt Px: MYR 2.31) │ Solarvest (KLSE: 0215, BBG Consensus 12M Tgt Px: MYR 2.36) │ Pekat (KLSE: 0233, BBG Consensus 12M Tgt Px: MYR 1.75) can benefit with their expertise in RE, particularly in solar.

Industrial and Data Centres:

Rationale: Industrial properties may see increased demand from MNCs relocating operations to Johor to leverage on its cost advantages.
The establishment of the JS-SEZ is expected to drive further data centres investments within the region. Johor has reportedly secured ~80% of Malaysia’s approved digital investments in recent years.
With its low costs and favourable policies, demand for industrial and data centre facilities will continue to grow.
Beneficiaries:
- Critical Holdings (KLSE: 0291, BBG Consensus 12M Tgt Px: MYR 1.62) │ HE Group (KLSE: 0296, BBG Consensus 12M Tgt Px: MYR 0.45) │ MN Holdings (KLSE: 0245, BBG Consensus 12M Tgt Px: MYR 1.72) are well-positioned as contractors specializing in industrial buildings and data centres.

Consumer & Logistics:

Rationale: In the long-run, job creation and higher household incomes in the SEZ could boost retail and F&B consumption. Per Johor Chief Minister Onn Hafiz, the JS-SEZ is targeted to create 400k high-income jobs, raising household income to RM13k/month.
Enhanced cross-border mobility and connectivity could drive regional and international tourism. Cross-border business travel is likely to surge.
At the same time, demand for logistics services will surge given the expected increase in trade flows between Johor and Singapore.
Beneficiaries:
- SWIFT Haulage Bhd (KLSE: 5303, BBG Consensus 12M Tgt Px: MYR 0.39) │ Tiong Nam Logistics (KLSE: 8397) are logistics services providers with major operations in Johor.
- MR DIY (KLSE: 5296, BBG Consensus 12M Tgt Px: MYR 1.92) │ AEON (KLSE: 6599, BBG Consensus 12M Tgt Px: MYR 1.76) have substantial operations in Johor, and are likely to be beneficiaries of an increase in consumer spending—driven by rising household incomes and job creation in the SEZ.

Trade Malaysian Stocks on Phillip Nova 2.0 now

Capture bubbling opportunities in the Malaysian market now! Click here to open an account now!

Trade Stocks, ETFs, Forex & Futures on Phillip Nova

Features of trading on Phillip Nova

Gain Access to Over 20 Global Exchanges
Capture opportunities from over 200 global futures from over 20 global exchanges

Trade Opportunities in Global Stocks
Over 11,000 Stocks and ETFs across Singapore, China, Hong Kong, Malaysia and US markets.

Over 90 Technical Indicators
View live charts and trade with ease with over 90 technical indicators available in the Phillip Nova platform

Trade Multiple Assets on Phillip Nova
You can trade Stocks, ETFs, Forex and Futures on a single ledger with Phillip Nova

Free Phillip Nova Demo Account

Fast and Secure Online Account Opening

An Exchange Traded Fund (ETF) is a marketable security that is formed to track nearly anything, ranging from a specific index, sector, commodity, or increasingly, theme. They are most commonly used to track a basket of stocks, and can typically be accessed through the same channels as regular stocks. ETFs are typically separated into passively-managed ETFs that simply mirror the security they are tracking (e.g. the STI), and actively managed ones that attempt to deliver higher returns or specific investment objectives, often with a pre-specified theme in mind (e.g. ARK Invest’s Innovation ETF).

Why should I trade in ETF CFDs?

ETFs have been growing in popularity over the years. 2020 was the best year for ETFs yet, with global equity ETFs seeing more than $1T in inflows within a 12-month period. Using CFDs to gain exposure to ETFs allows for greater capital efficiency because only a portion of the contract value is required as margin to establish a position.
ETFs are particularly popular with investors seeking a relatively hassle-free investing experience, while desiring exposure to a range of specific and relatively understandable securities. Trading ETF CFDs brings greater convenience by eliminating the need for traders to hold multiple currencies in order to access global ETFs.
An investor wanting exposure to the post-pandemic economic recovery could open a position in the well-known SPDR S&P 500 ETF (SPY), which tracks the performance of the S&P 500. Another investor that may be convinced of the future importance of Environmental, Social and Governance concerns (ESG) may find the increasing selection of ESG-themed ETFs that track a basket of high ESG-rating companies to be a good investment, rather than cherry-picking individual equities by hand. ETF CFDs can act as a powerful tool for traders can profit from both directions of the market by taking on long or short positions.

A look at two ETF CFDs we offer:

1) Has the ARKK been sunk?

ARK Innovation ETF (ARKK) ARKK is an actively managed ETF by ARK Invest that invests in a range of companies based on their innovative and industry-disrupting potential. ARKK’s largest holdings are in companies such as Tesla, Square, and Zoom. ARKK is down around -33% from peaking on 12^th Feb and is currently in the red for the year to date as the market experiences a risk-off outflow of funds. Superstar fund manager Cathie Wood has however been consistently doubling down on her bets, buying even more shares in growth stocks that are going through their own tumultuous periods such as DraftKings, Peloton, Teladoc, and Tesla. In her view, ARKK is playing the long game, and remains steadfastly convinced in the long-term prospects of these growth stocks beyond this current bout of volatility. Similarly on outflows, investors are still betting big on ARKK as ARK Invest has only lost about $1.2B in assets this year across all its six funds, compared to seeing an inflow of $15.1B during the same period. Recently, investors have been nervously eyeing ARKK’s basket of tech stocks as their future earnings potential remain vulnerable to erosion through high inflation – the dominant concern of the market in recent weeks. As commodities – the major contributor to the recent heightened inflation fears – drops sharply from record highs, are investor concerns over hyperinflation overblown?

2) Searching for exposure to Asian equities?

iShares MSCI Asia ex Japan ETF (AAXJ) The AAXJ is currently trading -10.6% adrift of all-time highs seen in February, giving up gains in tandem with an Asia-wide equity sell-off at the time. Given that slightly over 40% of the ETF’s holdings are based in China, the ongoing tumult seen in Chinese equities currently have carried over nearly perfectly in the AAXJ, as Chinese investors take a breather after the stellar gains made over the past year. Looking ahead, Asia – and particularly China, is steaming ahead with its economic recovery. China is widely expected to be one of the best-performing major economies this year, providing a major boost to the outlook for corporate earnings. As the rest of Asia and the world gradually opens up their own economies, AAXJ is likely to again benefit from strong Asian outperformance amidst a strengthening trade outlook.

CFD is available for trading on Phillip MetaTrader 5 (MT5).

Features of trading CFD:

Trade in both the bull and the bear markets
The ability to enter a long and/or short position allow traders to take advantage of both rising and falling markets.
Smaller barrier to entry
Flexible and smaller contract sizes. This means that traders will be able to enter into a contract with a modest amount of capital.
No expiration date or risk of delivery
Unlike futures which commonly have a fixed expiration date, CFD allows traders to perpetually hold the position(s). CFD is cash settled, no need to worry about the delivery of the underlying asset.

Benefits of using Phillip MT5:

Trade at zero commission on a dynamic platform that offers low spreads. Integrated with Autochartist and Trading Central Indicators, and available on mobile, web and desktop app, you will never miss a trading opportunity with Phillip MT5.

Register for a FREE 30-day Phillip MetaTrader 5 Demo Account

More Market Trends

11 Jun 2025

3 Reasons why Warren Buffet is bullish on the Japanese Markets

Client Portal