Johor projects push Malaysia's lesser-known stocks to new heights

SINGAPORE/KUALA LUMPUR -- Malaysia's small- to mid-cap stocks are outperforming some of the biggest companies in the country, buoyed by digital infrastructure and construction projects in the country's state of Johor, which shares a border with Singapore.

Investors are bullish on the southernmost state of Peninsular Malaysia, which is scheduled this week to sign an agreement with Singapore to jointly develop a special economic zone (SEZ). The project, which was formally announced in October, have pushed share prices of some utilities, construction and technology companies up to three times higher, versus year-ago levels.