JOHOR BAHRU (Jan 16) — The Johor State Government has reaffirmed that large-scale developments and strategic investments, including projects within the Johor–Singapore Special Economic Zone (JS-SEZ), will move forward only if they do not disrupt essential utilities for residents, with electricity and water supply remaining top priorities.
Johor Menteri Besar Datuk Onn Hafiz Ghazi said all incoming investments — particularly data centres and high-intensity industrial operations — are subject to stringent technical evaluations to ensure existing public infrastructure capacity is not compromised.
He added that the state has been working closely with Tenaga Nasional Bhd (TNB) and Ranhill SAJ (RSAJ) to align short-, medium-, and long-term planning for electricity and water supply across key growth corridors.
According to Onn Hafiz, electricity availability within the JS-SEZ is currently stable and well managed. As of December 2025, installed power capacity in the zone stood at 3,885 MVA, while demand was approximately 1,272 MW, translating to utilisation of about 73%, which remains within a healthy operating range.
To support future growth, TNB has outlined a phased expansion of the grid network, including four approved Transmission Main Intake (PMU) facilities with a combined capacity of 630 MVA, alongside nine additional PMUs planned to deliver 1,620 MVA of extra capacity over time.
This proactive infrastructure planning is viewed positively by industrial investors, particularly those evaluating data centre sites and advanced manufacturing hubs — trends that continue to influence demand for industrial land in Selangor and industrial property in the Subang area, where power reliability is equally critical.
On the water front, the JS-SEZ — covering Johor Bahru, Kota Tinggi, and Pontian — has an allocated supply capacity of 1,488 million litres per day (MLD) until January 2026. Current production stands at around 1,261 MLD, leaving a buffer of approximately 15%, or 227 MLD.
To further strengthen supply resilience, both the state and federal governments have approved a RM1.02 billion rezoning initiative aimed at enhancing treated water system efficiency. The project is expected to add 260 MLD of capacity, particularly benefiting high-growth areas such as Iskandar Puteri and Sedenak.
In addition, Johor is implementing five new water treatment plants and riverside reservoir (TAPS) projects in collaboration with RSAJ, SPAN, and PAAB. Rolled out in phases, these initiatives are designed to support Johor’s development needs through 2035.
Once completed, the combined projects will deliver more than 1,100 MLD of additional water capacity, ensuring long-term supply stability for residents while enabling sustained industrial and economic expansion.
The state’s focus on infrastructure readiness underscores a broader trend seen across Malaysia’s major growth regions. Reliable utilities are now a core decision factor for investors assessing commercial property in KL, business parks, and office space in Bukit Jalil, as well as factories and logistics hubs in Puchong and Selangor’s industrial belts.
As cross-border economic integration accelerates, Johor’s approach reinforces the importance of balanced development — prioritising liveability while supporting industrial and investment-led growth.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 17 Jan 26
Malaysia