Malaysia’s BRICS entry will boost Johor’s investment, trade potential through JS-SEZ — Onn Hafiz

Malaysia’s BRICS entry will boost Johor’s investment, trade potential through JS-SEZ — Onn Hafiz

03 Oct 2024

Malaysia’s entry into the BRICS economic bloc will bring greater investment and trade potential to Johor through the Johor-Singapore Special Economic Zone (JS-SEZ), said Johor Menteri Besar Datuk Onn Hafiz Ghazi.

He said that participation in the inter-governmental organisation, which comprises Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE), will also open doors to new markets and increase foreign investment in the country.

“One significant global development that will impact the implementation of the JS-SEZ is Malaysia’s intention to join the BRICS economic bloc, which represents rapidly growing economic powers globally.

“Therefore, on behalf of the state government, we warmly welcome and support the federal government’s intention to join BRICS, which will bring greater investment and trade potential to the state through the JS-SEZ,” Onn Hafiz said during the Johor State Legislative Assembly meeting here on Thursday.

The menteri besar said this in response to a written question from Nazri Abdul Rahman (PH-Simpang Jeram) regarding the preparation of the JS-SEZ in welcoming Malaysia’s interest in joining the economic bloc.

Established in 2009, BRICS initially included Brazil, Russia, India, and China, followed by South Africa’s participation in 2010.

In January 2024, Iran, Egypt, Ethiopia, and the UAE joined as new members.

Meanwhile, Onn Hafiz, who is also Machap assemblyman, said that Prime Minister Datuk Seri Anwar Ibrahim is expected to announce an incentive package for investors in the JS-SEZ during the tabling of Budget 2025 on Oct 18.

He said that the JS-SEZ agreement document is currently being finalised among various ministries, federal and state agencies, and Singapore.

“The memorandum of understanding for the JS-SEZ is expected to be signed during the leaders’ retreat between the governments of Malaysia and Singapore, scheduled for Dec 8,” he said.

Onn Hafiz also said that they will not overlook the northern areas of Johor, while southern Johor benefits from economic and infrastructure development due to the JS-SEZ.

“The rapid growth in the JS-SEZ area will contribute to increased state tax and non-tax revenue. These can be used to improve infrastructure in areas outside of the JS-SEZ,” he said.

Source: Bernama