February 27, 2025
JOHOR BARU – THE Johor-Singapore Special Economic Zone (JS-SEZ) has spurred excitement in the business community, with many companies considering relocating or forming partnerships with local firms.
The timely creation of the zone early this year is lauded, given the expected completion of major infrastructure projects next year such as the Rapid Transit System Link (RTS Link) and Gemas-Johor Baru Electrified Double Track Project.
Under the JS-SEZ agreement, both Malaysia and Singapore will collaborate to promote investments in 11 economic sectors: manufacturing, logistics, food security, tourism, energy, digital economy, green economy, financial services, business services, education and health.
The area spans about 3,588sq km, roughly four times the size of Singapore.
It covers six districts in Johor namely Johor Baru, Iskandar Puteri, Pasir Gudang, Pontian, Kulai and Kota Tinggi.
The zone aims to attract 50 to 100 major projects in the first five to 10 years, creating 20,000 skilled jobs, with each investment ideally exceeding RM200mil.
To entice multinational companies to set up offices here, several incentives are being offered.
Johor set up the Invest Malaysia Facilitation Centre Johor (IMFC-J) in Forest City on Feb 18 as a one-stop multi-agency facility to help investors.
Agencies like Malaysian Investment Development Authority, Iskandar Regional Development Authority, Invest Johor and Johor Corporation are actively promoting the zone.
Despite the positive momentum, questions remain about the blueprint or roadmap to ensure that this project does not become a white elephant.
Concerns include the future of existing development projects in Iskandar Malaysia, the rising cost of living in Johor, will there be wage increases, and whether development will simply focus on more high-rise projects around the city centre to attract foreign buyers.
Some local developers report significant land price increases in Johor, especially in the city area, due to foreign buyers.
Recent major announcements include the RM2.6bil development at the Johor Baru RTS Link terminus that will connect to Singapore’s Woodlands North MRT station.
The project, currently called the Bukit Chagar Integrated Mixed-Use Development, comprises a mall, four towers, a hotel, serviced apartments, a health and wellness hub as well as education facilities.
Hong Kong-listed Gold Peak Technology Group, a global leader in battery technology and energy storage solutions, is also planning a RM670mil manufacturing as well as research and development facility.
The government’s move to ease congestion at both our land borders with the island republic through the installation of more autogates and QR code scanners are steps in the right direction.
However, if we do manage to attract a large volume of people from across the Causeway, are we ready with good infrastructure such as wider roads and ample parking spaces?
Once the RTS Link is completed, at least 10,000 people will be arriving in Johor Baru hourly. How will they be moving around the city area?
The JS-SEZ also allows investors to move their goods via three major ports, namely Port of Tanjung Pelepas, Johor Port and Tanjung Langsat Port, while Senai International Airport is also part of this grand plan.
While Johor has air and sea hubs, are our main roads linking them − like Jalan Skudai, Jalan Tebrau, Pasir Gudang Highway and Eastern Dispersal Link − able to handle the extra traffic as they are already choked during peak hours daily?
Besides building more roads to disperse traffic, there is also an urgent need to implement the autonomous rail rapid transit.
It is crucial to improve connectivity between the RTS Link project and Kempas transportation hub.
There is also a need to ensure the state has ample resources, such as water and electricity, to cater to new investors.
Currently, we have 20 data centres operating in Johor, with another 40 in the pipeline.
One question on people’s minds is whether Johor can sustain this high demand in the long-term, especially when we have to continue supplying 250 million gallons of raw water to Singapore daily.
Human resources is another factor that needs to be looked into.
Skills training institutes need to update their syllabus to produce students adept in artificial intelligence and advanced technology, who can meet future demand.
The government should also come up with plans to help the people cope with the rising cost of living.
Developments in JS-SEZ should also be better communicated to the public via regular updates through the mass media.
The JS-SEZ represents a synergistic opportunity for both Singapore and Johor, with Johor providing land and resources to complement our neighbour’s growth.