Certain sectors, stocks could benefit from the Johor-Singapore Special Economic Zone

Singapore and Malaysia have established a new Johor-Singapore Special Economic Zone (JS-SEZ) that will drive investments in key sectors.

- 

The 11 key sectors are manufacturing, logistics, food security, tourism, energy, the digital economy, green economy, financial services, business services, education and health.

Both countries have aimed for 100 projects in the next 10 years, and to create 20,000 skilled jobs.

Certain sectors and stocks in Singapore will benefit, said analysts.

The JS-SEZ may draw the supply chains that are shifting elsewhere as a result of US-China trade tensions, Maybank pointed out in a report on Jan 7.

Maybank Securities Singapore head of research Thilan Wickramasinghe wrote: "Conceptually it has the ability to leverage Singapore's global finance and logistics centre capabilities with Johor's access to competitive land, labour and energy to deliver a differentiated proposition - especially for supply chains looking for alternatives to North Asia amid the US-China trade war."

These sectors in Singapore - banking, gaming, industrials, tech and telecommunications - will benefit from the economic zone, said Maybank.