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Business Times
4 days ago
- Business
- Business Times
Building the bridge: How robust infrastructure will anchor the JS-SEZ's success
MALAYSIA'S Economy Minister has announced that a full blueprint for the Johor-Singapore Special Economic Zone (JS-SEZ) will be released by end-2025. This marks a pivotal step forward, and naturally raises expectations. With businesses watching closely and geopolitical hedging on the rise, real progress will depend on what both sides deliver next. Some key steps are already underway. Digital customs have been upgraded, QR code clearance is live, investment facilitation centres are operating, and the Rapid Transit System (RTS) Link is set to cut Causeway travel time to just five minutes. These steps signal serious intent, and they provide a strong base to build upon. But these are just first moves. Credibility now depends on momentum. The next phase should begin to address the harder, often trickier, aspects of infrastructure readiness. Without visible progress and closer collaboration on both sides, the JS-SEZ risks losing ground to business hesitation and global competition. Fast tracks, not yet seamless Few aspects of the next phase will matter more than the movement of goods. Commuters may soon ride the RTS Link to cross the Causeway in just five minutes – but trucks will not. Despite digital upgrades, cargo still faces congestion and red tape. In a recent Singapore Business Federation (SBF) survey, nearly half the firms exploring the JS-SEZ flagged cargo movement as a key concern. This shows that logistics is no longer a passive facilitator; it now actively filters investment decisions. With such concerns rising, investors are watching closely, and continued delays may shift their calculus. To address this, both sides could consider expanding their logistics toolkit. Dedicated truck lanes, enhanced ferry services, or even rail options could all be considered. Just as important is easing congestion in and around Johor Bahru and Woodlands, where delays can ripple across the entire supply chain. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Without seamless cargo movement on both sides of the Causeway, even the best-laid blueprint risks falling short. Malaysia and Singapore have already proven what's possible for passenger flows. Now is the time to match that momentum for cargo, before credibility, and capital, move on. From warehouses to world markets Land-side upgrades are a start. Leveraging Johor's seaports could further anchor the SEZ as a globally competitive logistics node. Johor's 1,214 hectares of warehousing are already a key asset. This space allows firms to set up quickly and manage inventory near major shipping lanes. But with surging demand from industrial tenants, capacity may soon be stretched. Expanding bonded zones and storage facilities, even if phased, could help consolidate early gains and keep momentum on track. Further coordination with Singapore's port system could unlock greater returns. Singapore is connected to more global top trade routes than any other South-east Asian port. The Tanjung Pelepas-Singapore corridor already ranks in the global top 50 in both directions, moving 135,000 tonnes of cargo daily between them. But for two major ports on one of the world's busiest trade arteries, that still leaves plenty of room to grow. For perspective, the Shanghai-Ningbo route, which also links two nearby ports, moves over twice that volume. This gap is not merely logistical. Unlike China's unified system, Malaysia and Singapore must coordinate across sovereign lines, each with its own priorities, institutions, and political calculations. Unless bilateral collaboration gradually evolves in tandem with infrastructure ambition, the Tanjung Pelepas-Singapore corridor may take longer to realise its strategic potential. Still, the stakes are increasingly clear. A truly competitive corridor will require both sides to pull in the same direction. Neither side can do this alone. With phased, pragmatic cooperation grounded in mutual interest, the JS-SEZ could become a high-performing trade platform, and a test case for bilateral supply chain collaboration in Asean. Utilities cannot be an afterthought Beyond logistics, power and water will be just as critical. High-demand sectors such as data centres are expanding fast in Johor, but their growth depends on reliable utilities. Right now, the system is already under strain. Recent disruptions, such as the Sungai Johor water treatment plant shutdown, have already affected industrial areas and nearby data centres. On the energy side, the power grid is growing, but not fast enough. Nearly 30 per cent of new data centre proposals were deferred in late 2024 to avoid grid overload. As investment interest grows, the predictability of utilities will become increasingly important. If planning lags behind demand, early gains could soon face headwinds. While the current 'project-by-project' approach may appear cost-efficient, it can introduce uncertainty as demand rises. What seems prudent today may quietly become a constraint tomorrow. Regional grid integration could be part of the solution. Asean's pursuit of a multilateral power grid offers a way to balance demand and improve cross-border capacity planning. With Malaysia chairing Asean this year, the region is well-placed to build on its energy diplomacy – a momentum that, if sustained, could ease pressure on national systems and unlock broader gains, including for the SEZ. Bridging hard and soft infrastructure Hard infrastructure draws headlines, but it doesn't close deals on its own. For firms exploring the JS-SEZ, how things work day-to-day matters just as much as what gets built. Some of these practical concerns are already surfacing in early investor feedback. In the same SBF survey, more than half of firms flagged uncertainty around tax rules and labour shortages, concerns that often reflect operational complexity on the ground. These are not easily resolved, nor are they unique to the JS-SEZ. But over time, small frictions can shape big decisions. That's why even modest steps, taken early and properly executed, can count for more than waiting on the perfect plan. Firms don't expect perfection, but they do notice momentum. Ultimately, the JS-SEZ's long-term success will be measured by its ability to deliver: in infrastructure, in regulatory clarity, and in day-to-day reliability. Sustained advantage will belong to those who turn ambition into execution, before opportunity moves elsewhere. Whether the JS-SEZ leads or lags in South-east Asia's next growth chapter will depend on the choices and collaborations made by both sides today. The writers are researchers at the Asia Competitiveness Institute, Lee Kuan Yew School of Public Policy
New Straits Times
10-06-2025
- Business
- New Straits Times
Al-Salam Reit eyes 85pct occupancy by 2027, backed by Komtar revamp
KUALA LUMPUR: Al-Salam Real Estate Investment Trust (Reit) occupancy is expected to rise to around 80-85 per cent by 2027, up from 69 per cent in the first quarter of 2025(1Q25). In its research note, Maybank Investment Bank Bhd (Maybank IB) said the Reit expects the improvement to be driven by space reconfigurations and a shift toward fixed-base lease arrangements. "We estimate a rental upside of approximately RM3.5 million or about four per cent of revenue by financial year 2026 (FY26)," it said. Maybank IB noted that Komtar JBCC in Johor Bahru, which makes up about one-third of Al-Salam's total property value, is undergoing significant upgrades, with the alfresco dining area already completed in 1Q25. The reconfiguration of the second floor is driving a shift toward mini-anchor tenants, international brands, grab-and-go offerings, and categories such as pharmacy and food and beverage (F&B). Level 3 will be anchored by a pedestrian overhead bridge (POB), scheduled to open in 1Q27, which is expected to materially boost footfall. Meanwhile, Maybank IB said Al-Salam's 1Q25 results showed notable improvement, driven by higher net property income (NPI) from Komtar JBCC. Retail NPI margins increased from 55.9 to 58.4 per cent, while net cash from operations surged more than 90 per cent year-on-year, supported by stronger rental collection and operating leverage. However, gearing remains elevated at approximately 49 per cent, limiting near-term acquisition flexibility. "Management is exploring long-dated debt to refinance short-term borrowings and reduce cash flow volatility, targeting a capital structure reset in the second half of 2025," it said. The firm also added that Al-Salam has unveiled its "DISRUPT27" strategy, aimed at building a more resilient and focused portfolio anchored on high-quality retail and industrial assets. Central to this transformation is to turnaround Komtar JBCC by 2027, leveraging on infrastructure developments especially the Rapid Transit System (RTS). As part of the "DISRUP27" plan, Al-Salam also aims to gradually reduce its exposure to 42 KFC and Pizza Hut assets, representing 41 per cent of total assets, by divesting non-core and underperforming units in collaboration with QSR Brands (M) Holdings Bhd. While these assets remain fully tenanted under triple-net leases, the focus is aimed toward enhancing core retail and industrial segments. "Management expects the upcoming infrastructure developments such as the Electric Train Service, RTS and electrified double track project, to catalyse long-term demand, positioning Al-Salam to capture cross-border retail and commuter traffic from 2026 onwards," it said. Maybank IB has maintained a "Hold" rating on Al-Salam, with an unchanged target price of 40 sen.
New Straits Times
09-06-2025
- Automotive
- New Straits Times
18-month road closure in Johor Baru for RTS Link construction
JOHOR BARU: A crucial section of Jalan Johor Baru–Endau has been fully closed to traffic from June 3 and will remain so for more than 18 months to facilitate construction of the Rapid Transit System (RTS) Link. The Public Works Department announced that the full closure, affecting Section 0.10 to Section 0.20 of the road, wouldl be in place until Dec 31 next year to allow round-the-clock construction works. In a statement, MRT Corporation (MRT Corp) said the closure was necessary to carry out piling, pile cap works, and column erection as part of the RTS Link infrastructure, which will eventually connect Johor Baru to Singapore. During the closure of Section 0.10, motorists travelling from Jalan Tun Abdul Razak (towards Danga Bay) will be diverted via Jalan Station and Jalan Wong Ah Fook towards Jalan Tebrau. As an alternative, those travelling from Jalan Tun Abdul Razak 1 may use the route in front of Masjid Habib Hassan Al-Attas towards Danga City Mall, make a U-turn, and return to Jalan Tun Abdul Razak before turning left onto Jalan Lingkaran Dalam. Motorists are advised to adhere to traffic signages and instructions from on-site traffic personnel to ensure safety and minimise disruptions.
The Star
31-05-2025
- Business
- The Star
Anwar, Singapore leaders discuss key bilateral issues
SINGAPORE, May 31 -- Prime Minister Datuk Seri Anwar Ibrahim delivers his special address in conjunction with the 22nd Shangri-La Dialogue 2025 held at a hotel today. --fotoBERNAMA (2025) COPY RIGHT RESERVED SINGAPORE: Datuk Seri Anwar Ibrahim discussed key bilateral issues with Singaporean leaders, including border and maritime affairs, renewable energy, and regional initiatives such as the Asean power grid, as he wrapped up his one-day working visit, here. The Prime Minister paid a courtesy call on Singapore President Tharman Shanmugaratnam at The Istana and also held a bilateral meeting with his counterpart, Prime Minister Lawrence Wong, before flying home. "We also reviewed ongoing projects, such as the Johor Bahru-Singapore Rapid Transit System (RTS) Link, set for completion by late 2026, and the Johor-Singapore Special Economic Zone (JS-SEZ), which is expected to boost regional growth,' he posted on Facebook. Anwar is optimistic that the visit will strengthen cooperation between Malaysia and Singapore for mutual benefit. Meanwhile, Wong, in a Facebook post, said he looked forward to continuing the two countries' close partnerships for the benefit of the people. During the visit, Anwar delivered a special address at the 22nd Shangri-La Dialogue. He also received courtesy calls from United States Secretary of Defence Pete Hegseth and Boeing Global President Dr Brendan Nelson.- Bernama
Time of India
29-05-2025
- Business
- Time of India
Gurgaon's Southern Peripheral Road: A booming real estate hub with Rs 100,000 crore projects
DLF, India's premier developer, has introduced two upscale residential developments that have experienced value appreciation post-launch. (AI image) Southern Peripheral Road (SPR) in Gurgaon has become the region's most dynamic micro-market, with developments valued at Rs 50,000 crore initiated since 2022, whilst an additional Rs 50,000 crore worth of projects are scheduled for the next three years. Property values along SPR have shown substantial growth in five years, increasing from Rs 7,690 per sq ft in 2020 to Rs 18,000 per sq ft by mid-2024. DLF, India's premier developer, has introduced two upscale residential developments that have experienced value appreciation post-launch, with the subsequent phase expected this quarter. "Gurugram is growing fast, with many new infrastructure projects. One of the fastest-growing areas is SPR. When people think about buying a home, location plays the crucial role in the decision-making," said Aakash Ohri, Joint MD and Chief Business Officer, DLF Homes according to an ET report. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo The value increase is primarily due to enhanced infrastructure, including expanded roads and new flyovers, improving connections to Golf Course Road, Sohna Road, and NH-48. "Demand for properties has surged in and around SPR, particularly since the second half of 2021. The region has seen sustained sales momentum, with transaction values rising sharply, underscoring strong and consistent demand," said Pradeep Aggarwal, founder and chairman, Signature Global. Signature Global, owning a 93-acre plot in the vicinity, has launched over 2.1 million sq ft of development and plans an additional 14.9 million sq ft. The 16-km SPR corridor, connecting Gurgaon-Faridabad Road to NH-48, has considerably enhanced accessibility and property values. At a projected sales rate of Rs 18,000 per sq ft, Signature Global's forthcoming projects in the area are anticipated to achieve total sales of Rs 27,000 crore. Trump Residences, recently announced, is situated within the SPR zone. "The Gurgaon market continues to attract strong investor interest, and good projects have delivered solid returns in the recent past," said Pankaj Bansal, co-founder, Smartworld Developers. A development launched in 2023 in Sector 76 along SPR at Rs 10,500 per sq ft experienced significant appreciation of nearly 64%, with current rates around Rs 17,250 per sq ft. "The real estate market in NCR, particularly Gurugram, is set to reach new highs driven by infrastructure upgrades, rising housing demand, and a vibrant commercial ecosystem. Completion of key projects like the Dwarka Expressway, SPR, and the Rapid Transit System will enhance connectivity and fuel demand from both homebuyers and investors," said Navdeep Sardana, founder, Whiteland Corporation.
