Johor is undergoing a transformation, moving beyond its industrial base to emerge as a key driver of Malaysia’s economic future. Strategic initiatives such as the Johor–Singapore Special Economic Zone (JS-SEZ) and the upcoming Rapid Transit System (RTS) Link are strengthening cross-border integration and attracting fresh waves of investment. Long defined by its proximity to Singapore and its industrial base, the state is now moving into a new phase, one shaped by deeper integration, infrastructure investment, and growing investor interest.
Recent economic indicators reinforce this transition. The Malaysian economy grew by 4.4% in the second quarter of 2025 (1Q 2025: 4.4%), driven by resilient domestic demand, sustained household spending and steady investment activity. In Johor, the property market is showing similar strength as service apartment sector is poised for continued growth, the residential overhang has eased and interest from Singapore is evolving beyond lifestyle acquisitions to include longer-term investment strategies. With the RTS Link projected to transport up to 10,000 passengers per hour in each direction from 2026, demand along its corridor is expected to deepen in both scale and stability.
From an investment perspective, the current phase stands apart from earlier cycles, where rapid development often outpaced market absorption and created imbalances. Today, infrastructure timelines, policy direction and private sector execution are more closely aligned, providing a firmer foundation for capital deployment. This environment, however, also demands more governance, funding certainty and delivery discipline, are now baseline requirements rather than optional strengths.
Policy developments are reinforcing this emphasis on delivery assurance. Under the 13th Malaysia Plan (13MP), Prime Minister Datuk Seri Anwar Ibrahim has announced plans to amend the Housing Development (Control and Licensing) Act 1966, introducing a build-then-sell (BTS) model for residential developments. The proposed 10:90 concept, 10% payment upfront and 90% upon completion is designed to strengthen buyer protection and address the risk of abandoned projects. For investors, it signals a market environment where the ability to complete on time and to standard will be central to investment decisions. Experience from markets such as Singapore and Australia demonstrates that when BTS is paired with strong governance, completion certainty improves and investor confidence strengthens.
While the BTS framework has yet to be implemented, its focus on governance and funding discipline echoes principles present in large-scale developments such as Quayside JBCC. This mixed-use project in the heart of Johor Bahru combines hospitality, serviced residences, retail, dining and parking within a single integrated setting. Situated in the JS-SEZ and within walking distance of the RTS station, the project is backed by structured funding with governance embedded at every stage and is progressing on schedule, with approximately 30% completion. Recognised operators have been appointed to manage the hotel and serviced residences upon opening in 2027–2028.
The investment structure supporting Quayside JBCC has already delivered its first interim dividend for the period ending 30 June 2025, providing a tangible return while construction continues. As surrounding infrastructure projects advance, improved accessibility and stronger cross-border connectivity are expected to enhance the development’s long-term appeal.
Johor’s next stage of growth will reward developments that pair strong market fundamentals with the structures to deliver on them. At Asia Vision Capital, our approach remains centred on disciplined execution, robust governance and diversified income strategies. These qualities will be essential in navigating market shifts while building lasting value. In a market where opportunity is matched by higher expectations, these principles provide a clear framework for identifying projects capable of delivering through every phase of the cycle.
