20-year contract will enhance traffic flow, reduce emissions, and boost smart city goals

ITMAX System Bhd has landed a major win in Johor Bahru’s smart city journey, securing a RM145 million contract to implement and maintain an AI-powered smart traffic light system over the next two decades.

Major Step in Johor’s Smart City Vision

ITMAX System Bhd, through its 65%-owned subsidiary Southmax Sdn Bhd, has been awarded a 20-year contract worth RM145 million by the Johor Bahru City Council (MBJB). Announced on August 1, 2025, the contract runs until July 31, 2045, focusing on the deployment and long-term maintenance of AI-powered smart traffic lights across Johor Bahru.

The deal marks ITMAX’s second major contract from MBJB, reinforcing its status as a pivotal partner in Johor’s urban transformation.

A Vote of Confidence from Local Authorities

According to ITMAX Managing Director and CEO William Tan Wei Lun, the contract reflects MBJB’s growing confidence in the company’s ability to deliver high-impact, technology-driven infrastructure. “This award reaffirms our role as a trusted long-term partner in Johor’s smart city transformation,” Tan said in a statement.

He highlighted that ITMAX’s system is not just about traffic optimization, but also about reducing carbon emissions and advancing Johor’s ESG (Environmental, Social, and Governance) goals.

AI at the Core of Urban Mobility

The smart traffic light system leverages artificial intelligence and real-time data to manage traffic flow more efficiently, helping to reduce congestion, travel times, and vehicle idling. This, in turn, is expected to cut fuel consumption and improve air quality in the city.

With more Southeast Asian cities aiming to modernize infrastructure, Johor Bahru’s move puts it ahead in regional efforts to digitally transform municipal services.

Boosting Business and Green Goals

ITMAX noted in a Bursa Malaysia filing that the contract is expected to have a positive impact on its earnings and net assets per share over the duration of the agreement. As of the announcement date, ITMAX shares remained steady at RM4.01, giving the group a market capitalization of RM4.14 billion.

This long-term project aligns with global trends toward green, smart infrastructure and is seen as a key milestone in Johor’s urban planning strategy.

Sustained Momentum in Public-Private Collaboration

This is not ITMAX’s first engagement with MBJB, and the continuation of collaboration signals strong momentum in public-private partnerships in Malaysia’s urban development sector. With Southmax leading the operational front, the project sets a precedent for other Malaysian cities to follow suit in deploying AI-based infrastructure.

The scale and duration of the contract also highlight MBJB’s commitment to long-term, sustainable urban solutions.

This strategic partnership between ITMAX and MBJB is a strong indicator of how Southeast Asian cities are embracing technology-driven infrastructure to solve long-standing urban issues. For residents and commuters in Johor Bahru—as well as city planners across Indonesia and Singapore—the success of this project could serve as a regional model for sustainable, AI-powered urban mobility.

Sources: Malay Mail (2025) , The Edge Malaysia (2025)

Keywords: ITMAX System, Johor Bahru Smart Traffic, RM145 Million Contract, AI Traffic Lights, ESG Johor, Southmax Sdn Bhd