Johor-Singapore SEZ’s industrial diversity resilient against trade tensions – Onn Hafiz
09 Feb 2025
The Johor-Singapore Special Economic Zone (SEZ) is well-positioned to handle uncertainties stemming from the ongoing US-China trade tensions, thanks to its diverse industries and strong workforce.
“I think if you look at the sectors, there is a clear show that we are diversifying into lots of industries, I think that should help manage the uncertainties that’s happening in the world,” said Johor Menteri Besar Datuk Onn Hafiz Ghazi to Channel News Asia today.
Onn Hafiz said that Johor’s top priority now is to implement SEZ policies and attract investors to ensure the zone complements the economic strengths of Singapore and Malaysia’s Klang Valley.
“And at the same time, we are putting a lot of effort when it comes to (developing) our talents.
“I think by having a resilient workforce, by giving them proper training and education, we should be able to embrace (the challenges of a global trade war) quite well,” he added.
Onn Hafiz highlighted the 11 different sectors outlined in the Johor-Singapore SEZ agreement, adding that they reflect “global demand and Johor’s strength”, making the economic zone resilient despite geopolitical uncertainties.
He expressed confidence in Johor’s growing data centre industry, citing strong demand from international firms.
“At the moment, the demand (to build more) data centres in Johor is huge, there are requests from US, China, and Australia, and quite frankly, this demand is getting higher” he said.
Onn Hafiz also reaffirmed Johor’s ambition to become Malaysia’s most developed state by 2030.
Yesterday (Jan 8), Onn Hafiz said investors in the JS-SEZ will enjoy new tax incentive packages announced by the Johor state government and Finance Ministry.
The tax incentive package that took effect on Jan 1 aims to position Johor as a premier destination for high-value investments and bolster economic ties with Singapore.
Investors in JS-SEZ are eligible for suite incentives that include a special corporate tax rate of five per cent for up to 15 years for companies investing in advanced sectors such as Artificial Intelligence (AI), quantum computing, medical devices, aerospace manufacturing, and global services hubs.
Source: NST
