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21 JUNE 2026

Friday, June 26, 2026

RTS, Gemas-Johor Baru ETS to lift land values, boost cross-border demand: CIMB Securities

 

KUALA LUMPUR: The ongoing road and rail infrastructure investments in Johor are key enablers of the state's rapid economic transformation, supported by stronger connectivity that is lifting land values and unlocking development opportunities across emerging growth corridors.

CIMB Securities Sdn Bhd said the Rapid Transit System (RTS) Link, which is scheduled to begin operations in January 2027, is expected to spur cross-border living demand from Singapore, with robust property take-up in southern Johor pointing to healthy underlying demand, particularly for landed homes.

The RTS Link is a cross-border high-capacity rail link between Johor Baru and Woodlands North in Singapore designed to ease congestion on the Causeway. It will be able to ferry up to 10,000 passengers per hour in each direction.

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CIMB Securities senior analyst Kenny Mak Hoy Ken added that the launch of the Gemas-Johor Baru electric train service (ETS) in December 2025 has improved interstate accessibility and commuting convenience to Johor Baru.

This has also broadened residential demand catchment areas and is reinforcing growth prospects beyond Johor Baru to nearby districts such as Kulai and Kluang, he said in a note.

Developed by SIPP-YTL, a joint venture between SIPP Rail Sdn Bhd and YTL Corp Bhd's construction arm, YTL Construction, the Gemas-Johor Baru electrified double track shortens travel time between KL Sentral and JB Sentral to about four hours compared with roughly seven hours using existing diesel-powered services.

SIPP-YTL had served as the main local subcontractor for the RM8.9 billion railway project, which began physical construction on Dec 1, 2016.

Spanning 192km, the route runs through key districts, including Segamat, Kluang, Kulai, and Johor Baru, before terminating at JB Sentral.

The Transport Ministry said this month it plans to acquire 10 new electric multiple unit (EMU) trains over the next two to three years to strengthen the Southern Shuttle service along the Gemas-Johor Baru ETS route under a long-term expansion programme worth more than RM200 million.

As of June 2026, two EMU trains are already in service.

Meanwhile, upgraded road infrastructure such as the Gerbang Nusajaya Interchange and the Bestari Perdana ramp has improved integration with Johor's major motorways, helping to ease congestion and shorten travel times to UEM Sunrise's Gerbang Nusajaya township and Mah Sing's Bestari Perdana development, respectively.

"This is augmented by improved last-mile connectivity within greater Johor Baru, including the upcoming Elevated Automated Rapid Transit (e-ART) project, which could extend economic spillovers to adjacent growth nodes such as Skudai, Tebrau, and Iskandar Puteri," Mak said.

"Nonetheless, we expect the development timeframe of infrastructure catalysts to be long-tailed, given associated funding challenges for large-scale infrastructure projects amid an evolving political landscape," he said. - NST

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