Johor bahru: Johor has embarked on a multi-year growth phase fueled by infrastructure integration, industrial diversification, and robust cross-border consumption, according to Maybank Investment Bank Bhd (Maybank IB).

According to BERNAMA News Agency, the investment bank highlighted that retail and industrial-focused real estate investment trusts (REITs) with strategic assets in Johor, notably Paradigm REIT, CapitaLand Malaysia Trust (CLMT), Al-Salam REIT, AME REIT, and Axis REIT, are set to benefit from continued tenant demand, positive rental trends, and potential valuation gains.

Maybank IB’s site visit to Johor confirmed the state’s increasing significance as a retail and industrial hub, bolstered by strong cross-border spending, the upcoming Johor Bahru-Singapore Rapid Transit System (RTS) Link slated for completion by the end of 2026, and the planned Singapore-Johor Special Economic Zone (JS-SEZ). These developments are expected to enhance connectivity, deepen economic integration, and increase property values near key areas. Additionally, the favorable Singapore dollar-Malaysia ringgit exchange rate continues to drive weekend spending and industrial demand.

The state’s primary industrial corridors have shown strong demand from sectors such as precision manufacturing, electric and electrical (E and E), and logistics. Worker dormitories are nearly fully occupied, while multinational clients increasingly seek facilities that comply with environmental, social, and governance standards. Although limited water and power capacity have temporarily hindered data center development, industrial interest remains strong, supported by Johor’s cost advantages and proximity to Singapore.

REITs with industrial exposure, such as AME REIT, Axis REIT, and CLMT, are well-positioned to benefit from the JS-SEZ and improved transport connectivity. Maybank IB continues to maintain its “Positive” outlook on REITs.