EN 
By Danish Lim, Senior Investment Analyst for Phillip Nova
The new RTS train was unveiled on 30 June 2025 and it featured the colours from the flags of the two countries as a nod to the cross border partnership. How will this new service, which is slated to begin by end 2026, benefit the citizens from both countries?
- Faster travel – journey only takes 5 minutes, with peak frequency of the train service as low as 3.6 minutes.
- Greater efficiency – service will operate from 6am to 12 midnight daily and will ferry up to 10,000 passengers an hour
- Seamless clearing – you only need to clear customs once in every trip at the departure station (RTS Link Woodlands North Station in Singapore and Bukit Chagar RTS Station in Johor).
What are some Malaysia or Singapore counters we should monitor for opportunities?
1) Financials: funding the build-out and cross-border flows
- OCBC (SGX: O39, BBG 12M Tgt Px: SGD 17.24): substantial exposure to Johor compared to peers, benefit from corporate loans for industrial parks, higher card spend as daily commuting volume rises, project financing, etc. We already see this happening.
Malaysian banks likely to see are likely to see greater demand for wholesale financing, particularly for large-scale projects:
- Maybank (KLSE:1155, BBG Consensus 12M Tgt Px: MYR 10.93)
- RHB Bank (KLSE: 1066, BBG Consensus 12M Tgt Px: MYR 7.38)
- CIMB Bank (KLSE: 1023, BBG Consensus 12M Tgt Px: MYR 8.27)
2) Tech: Can consolidate higher-mix production to Johor, freeing SG space for R&D; lower-cost expansion and tax incentives boost margins.
- Frencken (SGX: E28, BBG 12M Tgt Px: SGD 1.39)
- Venture Corp (SGX: V03, BBG 12M Tgt Px: SGD 15.50)
- AEM Holdings (SGX: AWX, BBG 12M Tgt Px: SGD 1.24)
3) Tourism & Consumer: Higher visitation + easing labour constraints
- Genting Singapore (SGX: G13, BBG 12M Tgt Px: SGD 0.92)
4) Renewables: Corporate Renewable Energy Supply Scheme (CRESS) lets SEZ multinationals purchase green power via SG retailer Sembcorp Power
- Sembcorp Industries (SGX: U96, BBG 12M Tgt Px: SGD 7.99): signed first 50 MW RE export agreement with Tenaga Nasional in Dec-24; part of up-to-300 MW programme. Allowing Sembcorp to buy inexpensive clean power from Malaysia which is then sold to Singapore businesses at a higher price. Read more here.
- Tenaga Nasional (KLSE: 5347, BBG Consensus 12M Tgt Px: MYR 16.28), who already signed an agreement with importer Sembcorp Power to supply renewable energy to Singapore.
- 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)
5) Logistics & industrial
- Mapletree Logistics Trust (SGX: M44U, BBG 12M Tgt Px: SGD 1.33): Owns a logistics hub in the Port of Tanjung Pelepas Free Zone. Will benefit from trans-shipping & e-commerce spillovers.
6) Property Development: 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 would be 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 2.47)
- EcoWorld (KLSE: 8206, BBG Consensus 12M Tgt Px: MYR 2.26)
- Mah Sing (KLSE: 8583, BBG Consensus 12M Tgt Px: MYR 1.84)
- Sunway Bhd (KLSE: 5211, BBG Consensus 12M Tgt Px: MYR 5.19)
- AME Elite (KLSE: 5293, BBG Consensus 12M Tgt Px: MYR 1.93)
- Lagenda Properties (KLSE: 7179, BBG Consensus 12M Tgt Px: MYR 1.63)
7) Contruction: 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.
- Gamuda (KLSE: 5398, BBG Consensus 12M Tgt Px: MYR 5.56)
- Sunway Construction (KLSE: 5263, BBG Consensus 12M Tgt Px: MYR 5.86)
- IJM Corp (KLSE: 3336, BBG Consensus 12M Tgt Px: MYR 3.25)
- Econpile Bhd (KLSE: 5253, BBG Consensus 12M Tgt Px: MYR 0.42)
- United U-Li Corp Bhd (KLSE: 7133, BBG Consensus 12M Tgt Px: MYR 1.83)
- Malayan Cement (KLSE: 3794, BBG Consensus 12M Tgt Px: MYR 6.86)
- Ann Joo Resources (KLSE: 6556, BBG Consensus 12M Tgt Px: MYR 0.89)
8) Industrial and Data Centres: 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.
- Critical Holdings (KLSE: 0291, BBG Consensus 12M Tgt Px: MYR 1.55)
- HE Group (KLSE: 0296, BBG Consensus 12M Tgt Px: MYR 0.45)
- MN Holdings (KLSE: 0245, BBG Consensus 12M Tgt Px: MYR 1.76) are well-positioned as contractors specializing in industrial buildings and data centres.
9) Consumer & Logistics: 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.
- 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 1.93)
- 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.
10) REITs and Retail Shopping: Once the RTS Link opens, seamless cross-border travel should channel more Malaysian footfall into Singapore. Causeway Point—Frasers Centrepoint Trust’s flagship mall—lies within a five-minute walk of the Woodlands North terminus, making FCT the clearest retail beneficiary. Higher tenant sales should flow through to turnover rents and boost DPU for suburban-mall REITs, while hospitality trusts are poised to capture incremental RevPAR from overnight visitors.
Singapore consumer names with meaningful Malaysian exposure, such as Yeo Hiap Seng, may also see demand tailwinds as cross-border shopping volumes rise.
- Frasers Centrepoint Trust (SGX: J69U) – owns Causeway point, Northpoint
- CapitaLand Integrated Commercial Trust (SGX: C38U) – owns Westgate, Clarke Quay, IMM Building, Ion Orchard (50% stake)
- Far East Hospitality Trust (SGX: Q5T) – Oasia Sentosa and Outpost
- CDL Hospitality (SGX: J85) – W Singapore Sentosa Cove
- Yeo Hiap Seng (SGX:Y03) –49.5% rev from Malaysia in latest FY, serves Yeo’s branded drinks
- Frasers and Neave (SGX:F99) – 38.77% from Malaysia, F&N
- Mewah International (SGX: MV4) – 32.98% from Malaysia, edible oil
11) ETFs to Watch:
- iShares MSCI Malaysia ETF (AMEX: EWM)
- FTSE Bursa Malaysia KLCI ETF (KLSE: 0820EA)
- SPDR Straits Times Index ETF (SGX: ES3)
- Lion-Phillip S-REIT ETF (SGX: CLR)
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