Southern region to power Selangor’s growth

PETALING JAYA: Selangor’s southern region is poised for a new wave of economic expansion, fuelled by large-scale infrastructure and industrial developments that promise to reshape the state’s investment landscape over the next decade.

Companies with strategic land holdings and construction capabilities are expected to emerge as key beneficiaries of this transformation, particularly as the state sharpens its focus on high-impact sectors and sustainable urban growth.

According to CIMB Research, which recently hosted the South Klang Valley 2025 Conference, the southern growth corridor highlighted the region’s importance as a key driver of Selangor’s economic engine.

The brokerage said growth is being propelled by value-added sectors such as managed industrial parks, ports, aerospace and digital services, underpinned by improved connectivity and pro-business policies.

“With its proven track record, IJM Corp Bhd is our top pick to benefit from South Selangor’s accelerating trajectory,” CIMB Research noted.

It added that other major beneficiaries include developers with a strategic presence in the Integrated Development Region in South Selangor (IDRISS) corridor and its surrounding areas.

These included Gamuda Bhd, S P Setia Bhd, Mah Sing Group Bhd, Eco World Development Group Bhd (EcoWorld Malaysia), UEM Sunrise Bhd, Sime Darby Property Bhd, IOI Properties Group Bhd (IOIPG) and Tropicana Corp Bhd.

The IDRISS, launched by the state government in March 2023, spans 40,000 acres across Sepang and Kuala Langat.

The masterplan aims to attract high-quality investments through targeted incentives and enhanced transport infrastructure, with the Selangor government identifying sectors such as aerospace, digital services – including data centres – and managed industrial parks as key catalysts.

CIMB Research sees significant upside potential from the corridor’s scale.

“With a potential gross development value (GDV) of RM1 trillion, we believe that more infrastructure and housing opportunities may emerge within the IDRISS corridor under the upcoming Second Selangor Plan (RS-2),” it highlighted.

In particular, IJM is viewed as well positioned to capture infrastructure opportunities.

“Over the mid-to-longer term, we believe that IJM offers good exposure to road connectivity projects under the IDRISS corridor and could play a role in redeveloping Carey Island into a global food and edu-tech hub,” the brokerage said.

IJM’s partnership with state-backed Permodalan Negeri Selangor Bhd and LSH Capital Bhd is expected to enhance road networks in Sepang and Kuala Langat, with the project aimed at easing congestion along the ELITE Highway and improving access to Kuala Lumpur International Airport.

Meanwhile, Gamuda’s land acquisitions in Dengkil to expand its Gamuda Cove township – its largest domestic project with a GDV of RM20bil – signal confidence in the region’s long-term prospects.

“Gamuda has expanded its presence in South Selangor by acquiring more land in Dengkil to expand its Gamuda Cove land bank – the group’s largest domestic township with a projected GDV of RM20bil, or one-third of the group’s total GDV of RM61bil,” CIMB Research highlighted.

Mah Sing’s joint venture to co-develop the 185-acre Mah Sing Business Park in Sepang, alongside established players such as S P Setia, EcoWorld Malaysia, UEM Sunrise, Sime Darby Property, IOIPG and Tropicana Corp, underscores the broad industry alignment behind Selangor’s development push.

Reflecting optimism over the region’s trajectory, CIMB Research said, “Overall, we maintain our ‘overweight’ stance on the construction sector and ‘neutral’ stance on the property sector.”

As Selangor continues to strengthen its position as Malaysia’s leading economic contributor – accounting for 26% of national GDP in 2024 – the southern corridor’s acceleration looks set to deliver enduring value to investors, developers, and the broader state economy.