Johor ranked 5th among Malaysian states with a record of having RM 129 billion in total approved investments in 1H24, with RM 8.0 billion contribution from FDI and RM 5.0 billion from domestic investment. In manufacturing sector, Johor Bahru had RM 6.0 billion approved investments, where domestic investment contributed to RM 1.5 billion and foreign investment contributed to RM 4.6 billion. The Invest Malaysia Facilitation Centre by State Government was implemented in Johor-Singapore Special Economic Zone (JS-SEZ) to streamline investments. The state promotes its political stability, infrastructure and connectivity, and the upcoming Johor Bahru-Singapore RTS Link to further improve business demand. Industrial transactions increased by 5.0% y-o-y to 923 units in 9M24 ( cf. 9M23: 875 units) valued at RM 4.5 billion, which increased by 51% y-o-y ( cf. 9M23: RM 3.0 billion). There is significant growth in Grade-A warehouse market near seaports and the airport in Johor Bahru due to Iskandar Malaysia being close to Singapore and its spill over requirements. The demand for Grade-A warehouse is for their improved efficiency, productivity, and cost savings. There are total of 4 million sq. ft. Grade A warehouse stocks in Johor Bahru, which totals up to 20% of overall warehouse supply. Johor Bahru is also a hotspot for data centres, and it attracts foreign investors due to its relatively cheaper land and operational costs. The rapid growth of data centres in Johor Bahru could impact the supply of electricity to the residents and business operators. The growing data centre industry is expected to use 990 MW to 1,400 MW by 2029, with ten applications to TNB requesting up to 2,000 MV. It also needs 4.2 million litres of water daily for cooling. Johor Bahru has rejected 30% of data centre applications since June 2024 due to resource concerns, and data centres are now required to include sustainability plans and job creation metrics. This sustainability guidelines are aimed to be introduced by late 2024. Market Summary Report Industrial Approved Investment in Johor 2019 2020 2022 1H 2023 2021 2023 1H 2024 Foreign Approved Investment Domestic Approved Investment 6.5 4.2 4.0 9.7 8.0 31.0 9.8 4.9 2.6 8.3 4.5 5.0 12.1 4.0 Abbrevaition: 1H-January to June Source: MIDA, CBRE | WTW Research & Consulting References: 1. Maybank Investment Bank Berhad. (2024). Malaysia 2025 Outlook & Lookouts: Brace Up for a Volatile Year. 2. CBRE/WTW. (2024). 2025 Malaysia Real Estate Market Outlook. 20 AL-SALĀM REIT ANNUAL REPORT 2024
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