HLIB Research
PP 9484/12/2012 (031413)
Outlook
Sunway, IOIPG, OSK, SimeProp Woodlands expansion strengthens JSSEZ
Tan Kai Shuen, CFA
kstan@hlib.hongleong.com.my
(603) 2083 1714
KLPRP
KLPRP (LHS) Pts: 1,400 to 750 (approx. range)
KLCI (RHS) Pts: 1,900 to 1,300 (approx. range)
Trend: From Aug-24 to Aug-25, KLPRP shows a slight decline, while KLCI shows a more significant decline.
Stock Rating
| Stock | Rating | Price | Target |
|---|---|---|---|
| SUNWAY | BUY | 4.74 | 5.90 |
| IOIPG | BUY | 2.14 | 4.05 |
| SP SETIA | BUY | 1.09 | 1.80 |
| UEMS | HOLD | 0.775 | 0.78 |
| MAH SING | BUY | 1.21 | 1.85 |
| MATRIX | BUY | 1.30 | 1.73 |
| OSK | BUY | 1.28 | 2.00 |
| SIMEPROP | BUY | 1.54 | 2.05 |
Property
On Singapore National Day Rally, Singapore PM Lawrence Wong unveiled the long-term plans for Woodlands, Kranji and Sembawang, the northern corridor of Singapore, underscoring that the JS-SEZ is a two-sided initiative. Some of the expansion plans include a fivefold expansion of the Woodlands checkpoint, seamless RTS-MRT integration, new industrial spaces, housing projects and a rejuvenated northern waterfront. For Johor, this translates into stronger residential appeal for workers commuting daily, industrial spillovers into logistics and manufacturing as well as rising retail and tourism demand. Developers that should benefit from a more vibrant JSSEZ include Sunway, IOIPG, Mah Sing, UEMS and SP Setia.
What happens at the other side of the causeway?
We have heard plenty of news about JSSEZ in Johor as well as developments near to RTS Bukit Chagar in JB that it seems all the hype about JSSEZ is centred in Johor, but what about the other end of the causeway in Singapore? During the annual National Day Rally speech on Sunday (17 Aug), we get a glimpse of what Singapore is doing on its side as Singapore PM Lawrence Wong unveiled long-term development plans for the northern region of Singapore (Woodlands, Kranji and Sembawang) over the next 10-15 years.
Woodlands checkpoint expansion.
To support the JS-SEZ, the Woodlands checkpoint of the Johor-Singapore Causeway will be redeveloped in phases over the next decade, expanding to five times its current size. Redevelopment works are slated to begin in 2025, with the revamped checkpoint designed to cut average clearance time from one hour to just 15 minutes during peak periods. This transformation aims to deliver shorter waiting times, smoother traffic flow and more efficient yet secure clearance procedures.
Developments near RTS Woodlands.
On top of transport efficiency, the RTS station in Woodlands will connect directly to Woodlands North MRT station on the Thomson-East Coast Line, enabling seamless transfers between the RTS and Singapore’s MRT network. Around the RTS Link station, Singapore will introduce new “flexible” industrial spaces targeted at businesses seeking to tap into the SEZ. Complementing this are new public housing projects, including 4,000 flats near Admiralty Park and additional residential developments along the Woodlands waterfront.
A new waterfront destination.
Beyond Woodlands, Singapore also has plans to rejuvenate adjacent areas such as Kranji and Sembawang. Together, the three districts will anchor a vibrant new northern waterfront destination, reshaping the economic and social profile of Singapore’s northern gateway.
Implications for Johor.
These large-scale plans underscore that the JS-SEZ is not a one-sided initiative. Singapore is also investing heavily in its northern frontier to create a stronger, better-integrated cross-border ecosystem.
For Johor, this carries several implications:
Residential upside:
With faster checkpoint clearance and direct RTS-MRT integration, daily commuting for workers who work in Singapore and stay in Johor becomes more practical. This strengthens Johor’s appeal as a lower-cost housing base and should, in turn, drive property value uplift around RTS Bukit Chagar and nearby areas. Listed developers with exposure near the RTS Bukit Chagar station include Sunway (RTS TOD project and Sunway Majestic), Mah Sing (M Grand Minori), UOA Development and Crescendo (Senyum Residence).
Industrial spillover:
The development of “flexible” industrial spaces near RTS Woodlands should enhance the feasibility and convenience of businesses to set up complementary industries in Johor, capitalising on its lower cost advantage, particularly logistics, warehousing, and manufacturing functions that require scale. Developers with significant Johor industrial exposure include IOIPG (1.1k acres land in Kulai), SP Setia (307 acres in Tanjung Kupang) and UEMS (1.1k acres under its revised masterplan pending approval).
Uplift in retail and tourism demand:
As northern Singapore urbanises into a lifestyle and waterfront hub, Johor stands to benefit from spillover in retail, hospitality, and tourism demand, where Johor can provide more affordable and larger-format offerings. Key beneficiaries include Sunway (RTS TOD project with mall and hotel components, retail mall component in Sunway Majestic and the upcoming redevelopment of Sunway Big Box Mall), IGB Reit (Southkey Mall), Paradigm REIT (Paradigm Mall JB).
In short, northern Singapore’s redevelopment raises the overall profile of the JS-SEZ corridor. Given Singapore’s inherent land and cost constraints, Johor is positioned as the natural “overflow valve” absorbing demand for housing, larger-scale commercial space, and cost-sensitive industries, thereby reinforcing the integrated growth story of the JS-SEZ.
We maintain our OVERWEIGHT rating on the property sector with top picks IOIPG (BUY; TP: RM4.05), OSK (BUY; TP: RM2.13), Sunway (BUY; TP: RM5.90) and SimeProp (BUY; RM2.05).
Figure #1 Plans for northern Singapore
- Woodlands Checkpoint will be 5 times bigger
- Johor Bahru-Singapore RTS Link station to directly connect to Woodlands North MRT on Thomson-East Coast Line
- New flexible industrial spaces
- More homes along Woodlands waterfront
- New MRT station at Sungei Kadut
- New Mandai mangrove and mudflat nature park
- New public housing estate
- New neighbourhood centre around Kranji MRT
- Sembawang Shipyard dry dock could become a community space for sports, concerts or gatherings
- New waterfront homes
Source: Prime Minister’s Office, Aug 17, 2025
Channel News Asia
Hong Leong Investment Bank Berhad (10209-W)
Disclaimer
The information contained in this report is based on data obtained from sources believed to be reliable. However, the data and/or sources have not been independently verified and as such, no representation, express or implied, are made as to the accuracy, adequacy, completeness or reliability of the info or opinions in the report.
Accordingly, neither Hong Leong Investment Bank Berhad nor any of its related companies and associates nor person connected to it accept any liability whatsoever for any direct, indirect or consequential losses (including loss of profits) or damages that may arise from the use or reliance on the info or opinions in this publication.
Any information, opinions or recommendations contained herein are subject to change at any time without prior notice. Hong Leong Investment Bank Berhad has no obligation to update its opinion or the information in this report.
Investors are advised to make their own independent evaluation of the info contained in this report and seek independent financial, legal or other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report. Nothing in this report constitutes investment, legal, accounting or tax advice or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise represents a personal recommendation to you.
Under no circumstances should this report be considered as an offer to sell or a solicitation of any offer to buy any securities referred to herein.
Hong Leong Investment Bank Berhad and its related companies, their associates, directors, connected parties and/or employees may, from time to time, own, have positions or be materially interested in any securities mentioned herein or any securities related thereto, and may further act as market maker or have assumed underwriting commitment or deal with such securities and provide advisory, investment or other services for or do business with any companies or entities mentioned in this report. In reviewing the report, investors should be aware that any or all of the foregoing among other things, may give rise to real or potential conflict of interests.
This research report is being supplied to you on a strictly confidential basis solely for your information and is made strictly on the basis that it will remain confidential. All materials presented in this report, unless specifically indicated otherwise, are under copyright to Hong Leong Investment Bank Berhad. This research report and its contents may not be reproduced, stored in a retrieval system, redistributed, transmitted or passed on, directly or indirectly, to any person or published in whole or in part, or altered in any way, for any purpose.
This report may provide the addresses of, or contain hyperlinks to websites. Hong Leong Investment Bank Berhad takes no responsibility for the content contained therein. Such addresses or hyperlinks (including addresses or hyperlinks to Hong Leong Investment Bank Berhad own website material) are provided solely for your convenience. The information and the content of the linked site do not in any way form part of this report. Accessing such website or following such link through the report or Hong Leong Investment Bank Berhad website shall be at your own risk.
1. As of 19 August 2025, Hong Leong Investment Bank Berhad has proprietary interest in the following securities covered in this report: (a) -.
2. As of 19 August 2025, the analyst(s) whose name(s) appears on the front page, who prepared this report, has interest in the following securities covered in this report: (a) -.
Published & printed by:
Level 28, Menara Hong Leong,
No. 6, Jalan Damanlela,
Bukit Damansara,
50490 Kuala Lumpur
Tel: (603) 2083 1800
Fax: (603) 2083 1766
Stock rating guide
Sector rating guide
The stock rating guide as stipulated above serves as a guiding principle to stock ratings. However, apart from the abovementioned quantitative definitions, other qualitative measures and situational aspects will also be considered when arriving at the final stock rating. Stock rating may also be affected by the market capitalisation of the individual stock under review.
