KUALA LUMPUR: Residential and commercial property developers along the Johor-Singapore border and renewable energy players are expected to benefit from announcements made during the recent Malaysia and Singapore leaders' meet.
Malaysian Prime Minister Datuk Seri Anwar Ibrahim and Singapore Prime Minister Lee Hsien Loong pledged to accelerate the progress of the Johor-Singapore Special Economic Zone (SEZ) and pursuing cross-border electricity trading at the 10th Singapore-Malaysia Leaders' Retreat.
An MoU on the SEZ is expected to be signed on January 11, 2024, as officials on both sides conduct a feasibility study on the SEZ to determine interest from investors and market demand.
RHB Investment Bank Research (RHB Research) in a note today said greater connectivity and industrial activities should lead to higher demand for residential and commercial properties in the future, with developers with land bank near the Johor-Singapore causeway and Tuas Second Link likely winners.
"Given both countries' interest in cross-border electricity trading, we expect further news flow on UEM's development of its large scale 1GW hybrid solar photovoltaic power plant to be coming up soon. "This solar energy plant will be integrated with a renewable energy industrial park," it added.
Singapore intends to import 30 per cent of its electricity supply from low-carbon sources by 2035, while Malaysia has recently lifted a ban on renewable energy exports.
RHB Research said companies that can potentially benefit significantly from a commitment to ease of transportation of people and goods between the two countries include UEM Sunrise Bhd, Sunway Bhd and AME Elite Consortium Bhd.
Apart from the renewable energy sector, RHB Research also expects other industries, which can benefit from the ease of movement of goods between the two countries, to be the electronics, pharmaceutical, automotive, and agriculture sectors.
RHB Research has an overweight call on the Johor real estate sector.