MAYBANK Investment Bank (MIB) site visit to Johor site reaffirmed the state’s rising prominence as both a retail and industrial hub, supported by strong cross-border spending, the upcoming Johor Bahru–Singapore Rapid Transit System (RTS) Link (end2026), and the planned Singapore–Johor Special Economic Zone (JS-SEZ).
These catalysts will enhance connectivity, deepen economic integration, and lift property values near key nodes. The favourable SGD/MYR exchange rate continues to spur weekend spending and industrial demand.
“We maintain a Positive view on REITs with meaningful Johor exposure – Paradigm REIT (NR), CLMT, Al-Salam REIT, AME REIT (NR) and Axis REIT,” said MIB.
Within Johor’s retail landscape, Paradigm Mall Johor Bahru (PMJB) and Mid Valley Southkey remain dominant regional malls. Occupancy at PMJB is nearly full at ~99%, reflecting strong retailer confidence.
Singaporean visitors make up a large share of weekend traffic, benefiting operators such as Paradigm REIT and Al-Salam REIT. Leasing momentum remains firm, supported by Singaporean brands expanding into Johor and healthy domestic consumption.
Johor’s key industrial corridors continue to attract strong demand from precision manufacturing, E&E, and logistics tenants. Worker dormitories maintain near-full occupancy, while multinational clients increasingly seek ESG-compliant facilities.
Although limited water and power capacity has temporarily slowed data centre development, industrial appetite remains firm, underpinned by Johor’s cost advantage and proximity to Singapore.
REITs with industrial exposure such as AME REIT, Axis REIT and CLMT are well positioned to benefit, supported by the JS-SEZ and improved crossborder transport connectivity.
“We see Johor entering a multi-year growth phase, driven by infrastructure integration, industrial diversification, and resilient cross-border consumption,” said MIB.
Retail and industrial-focused REITs with strategic Johor assets, particularly Paradigm REIT (NR), CLMT, Al-Salam REIT, AME REIT (NR) and Axis REIT are poised to benefit from sustained tenant demand, positive rental trends, and potential valuation uplift.—Oct 7, 2025
Main image: Property Genie
