UOBKH Research said EcoWorld Malaysia’s business parks segment has seen remarkable growth since 2020.
PETALING JAYA: Eco World Development Group Bhd
(EcoWorld Malaysia) is poised to capitalise on the vibrant industrial space in Johor, in light of increased investment activity in the state.
UOB Kay Hian Research (UOBKH Research) noted that, last week, the Johor state government leadership visited a top leader in Shenzhen, China, where discussions were centred on replicating Shenzhen’s success through the Johor-Singapore Special Economic Zone (JS-SEZ) initiative.
“Shenzhen’s remarkable transformation, becoming China’s third-largest city with a booming economy, serves as inspiration,” the research house said in a report yesterday, adding that Johor aims to emulate this success, fostering economic growth and positioning itself as “the next Shenzhen”.
“The Johor government is confident that Johor can become a significant trading partner with Shenzhen, contributing to its vision of becoming an advanced state by 2030.”
UOBKH Research said the state delegation to Shenzhen had the opportunity to meet with 40 potential investors, including world-renowned companies such as China Telecom and Shenzhen Capchem Technology, among others.
“We are positive on the influx of potential investors to Johor as it promises significant economic benefits for the region.
“We believe developers who own industrial land in the state stand to gain from increased investment and development.”
The research house highlighted that back in Sept 23, EcoWorld Malaysia had acquired 404 acres of land in Kulai, Johor for RM211mil.
“The land is strategically located 5km from the Kulai toll gate and easily accessible through the North-South Highway, enjoys good connectivity to the Second-Link Expressway, Senai-Desaru Highway, Pasir Gudang Highway, Senai International Airport and various seaports.
“It is also surrounded by mature townships that are well served by various amenities. EcoWorld Malaysia plans to develop the land into an industrial development known as Eco Business Park VI, catering to medium and light industries.
“Eco World Malaysia expects to launch the industrial projects towards the end-2024.”
UOBKH Research noted that EcoWorld Malaysia is one of the largest industrial landowners in Iskandar Malaysia in Johor.
Including the new land, Eco World Malaysia will have five business parks, four in Iskandar Malaysia and one in the Klang Valley.
“In just a decade since its inception, EcoWorld Malaysia has generated RM31.9bil in sales from Malaysian projects, with RM4.4bil from business parks.”
UOBKH Research said, notably, EcoWorld Malaysia’s business parks segment has seen remarkable growth since 2020, achieving a four-year compound annual growth rate of 68%.
“In Iskandar Malaysia, we find that EcoWorld Malaysia’s industrial land bank is the largest among developers, with nearly 800 acres remaining and a gross development value of at least RM3.6bil.”
The research house said, with its strategic positioning and solid track record EcoWorld Malaysia is well-positioned to further capitalise on Johor’s burgeoning industrial sector, aligning with Johor’s vision of becoming a regional economic powerhouse like Shenzhen.
“Malaysia’s high level of approved investments, particularly in states like Johor and the recent launch of the New Industrial Masterplan 2030, focusing on industrial growth and resilience, make it an attractive destination for investors seeking diversification.
“We anticipate sustained growth in industrial demand, supported by government initiatives and incentives. We think the incentives could include tax incentives, investment support, grants, regulatory flexibility and infrastructure assistance, to encourage foreign companies to participate in the JS-SEZ development.”
Additionally, the research house said it expects prudent measures from the state government to prevent oversupply in the industrial property market.
“Our channel checks indicate that all industrial properties launched by developers were sold out, indicating robust demand.”
