Trade group says nine in 10 Singapore firms bullish on special economic zone with Johor

11 Jul 2024

The ‘Greater Together: Two Economies, One EcoSystem’ report at the Johor-Singapore Special Economic Zone (JS-SEZ) Joint Investor Forum today revealed that 93 per cent of Singaporean businesses are eager to invest further in the Malaysian state.

This was based on findings from engagement with 160 Singaporean businesses across various sectors.

“The enthusiastic response to our report clearly signals the JS-SEZ’s great potential for our region. This isn’t just another project — it’s a potential game-changer for both Malaysia and Singapore,” said Teo Siong Seng, chairman of JS-SEZ Singapore Business Working Group.

“By bridging our economies, we’re creating new opportunities that will benefit businesses on both sides of the Causeway, he added.

The working group said the SEZ could leverage on Johor’s favourable operating costs and land availability, supported by Singapore’s strength in connectivity, branding and talent pool. Sectors to be targeted include manufacturing, logistics, digital services, healthcare, education and more.

However, the group conceded that some challenges remain, including gaps in manpower and the ease of movement between Singapore and Johor.

Yesterday, Economy Minister Rafizi Ramli said the Malaysian government is aiming to conclude negotiations with Singapore on the JS-SEZ by September, calling the project a “game-changer” for bilateral ties between the two countries.

The JS-SEZ will be located in Malaysia’s Iskandar region, and could cover an area of over 3,000km sq km, four times the size of Singapore.

The Malaysian government is promoting the zone as an investment magnet to boost sectors like electronics, health care and ancillary services for finance and business.

Source: Malay Mail