KUALA LUMPUR: Potential construction beneficiaries are expected to come into sharper focus as the Johor Baru elevated autonomous rapid transit (e-ART) project gains traction, with analysts anticipating increased market attention on contractors linked to the rollout.
CIMB Securities Sdn Bhd said the project is set to play a key role in easing traffic congestion across the city ahead of the planned launch of the Johor Baru–Singapore rapid transit system link (RTS Link) in early 2027.
The research firm said while it is still too early to pinpoint specific beneficiaries, it highlighted that Sunway Construction Bhd and IJM Corp Bhd previously played major roles in the RTS Link, while Econpile Bhd secured several piling packages under both the Gemas–Johor Baru electrified double track (Gemas-JB EDTP) and RTS Link projects.
The 192km Gemas-JB EDTP line, delivered by the YTL Corp Bhd-SIPP Rail JV in December 2025, establishes the long-awaited southern terminus of the electrified network stretching from Padang Besar in Perlis to Johor Baru.
It was reported that the JB Sentral station will act as the hub connecting the Gemas-JB EDTP, the RTS Link, and the proposed urban ART line.
"We expect market attention to shift towards potential construction beneficiaries of the Johor Baru e-ART," said CIMB Securities.
The Public-Private Partnership Unit (Ukas) under the Prime Minister's Office is reportedly preparing to issue a letter of intent to the DOM Industries (M) Sdn Bhd–MMC Corp Bhd ( DOM–MMC) consortium for the project. The consortium also includes Nylex Malaysia Bhd, a project promoter, and Thailand's BTS Group, the operator of Bangkok's MRT system, which is expected to provide technical inputs.
The request for proposal (RFP) for the ART system was issued in March 2025, with the DOM–MMC consortium proposing an autonomous people-mover (APM).
CIMB Securities said the proposed APM system is similar to Singapore's Sengkang and Punggol LRT lines.
Other contenders for the project include WCT Holdings Bhd in partnership with Lion Pacific and the YTL Corp Bhd-SIPP Rail JV.
Business Times reported today that the YTL Corp–SIPP Rail bid is believed to be RM3 billion-RM4 billion cheaper than the DOM–MMC proposal, with a shorter concession period of around 10 to 12 years.
The proposal by YTL, which has been involved in the rail industry for over 30 years, is centred on the ART system designed for longer urban corridors. The ART is increasingly viewed as a more advanced and cost-efficient solution for city-scale transport.
The e-ART project will be co-funded by the government and the appointed consortium under a public-private partnership model. However, the final financing structure is yet to be determined.
"Should the DOM–MMC consortium be officially installed as the recipient of the e-ART project, we expect that the market's attention will shift towards the corresponding construction packages," CIMB Securities said.
