October 15, 2025
SINGAPORE – Singapore-based companies have poured more than $5.5 billion in investments into Johor since the 2024 signing of a special economic zone pact between Johor and the Republic, said Deputy Prime Minister Gan Kim Yong.
Speaking at the second Johor-Singapore Special Economic Zone (JS-SEZ) Joint Investment Forum on Oct 14, DPM Gan said the zone complements Singapore’s industrial transformation efforts, giving companies room to scale while staying anchored to the Republic’s innovation and financial ecosystem.
For Malaysia and Johor, the JS-SEZ is a powerful engine to attract new investments, foster technology partnerships and develop important talent, he added.
“Together, we are building a cross-border ecosystem that supports enterprise growth, innovation and the creation of good jobs on both sides,” he said at the forum, held at the Sands Expo and Convention Centre.
DPM Gan, who is also Minister for Trade and Industry, said both Singapore and Malaysia will attract and anchor flagship projects for key sectors that both countries want to grow, such as advanced manufacturing, logistics, green industries and digital services.
“These projects will demonstrate the potential of the JS-SEZ to other investors, showcasing how firms can co-locate, grow their capacity, and expand seamlessly across both sides of the Causeway to tap into regional markets,” he said.
At the event, DPM Gan met Malaysia’s Investment, Trade and Industry Minister Tengku Zafrul Aziz, who announced a slew of new incentives meant to encourage firms to set up in the JS-SEZ.
For instance, all manufacturers in non-sensitive sectors can expect approvals to be fast-tracked to within seven days, said Mr Zafrul.
This includes obtaining a “no objection letter” from the Johor state government – a document required for companies to get a manufacturing licence from the Malaysian authorities. Eligible projects will also be given priority under the Johor Super Lane facilitation, an initiative by Johor’s government to reduce red tape in approving investments.
Mr Zafrul added that an additional RM200 million (S$61.5 million) has been allocated to the Strategic Co-Investment Fund as part of Malaysia’s Budget 2026 that was announced on Oct 10.
The fund supports high-impact projects by Malaysian small and medium-sized enterprises (SMEs), “particularly those that contribute to strengthening the cross-border industrial ecosystem between Johor and Singapore”, he said.
Another RM650 million will be allocated for talent development in related sectors in the zone. The fund aims to train roughly 25,000 workers in sectors such as artificial intelligence, electric vehicles and semiconductors.
“This mechanism underscores Malaysia’s shared commitment… to provide investors with certainty, speed, and seamless facilitation under the JS-SEZ framework,” said Mr Zafrul, referring to the fast-track approval process for manufacturing firms.
“By building a more integrated, agile and investor-friendly zone, we are positioning the JS-SEZ as both a manufacturing and services hub for businesses to navigate geopolitical uncertainties, while maintaining their global competitiveness,” he added.
DPM Gan noted that the JS-SEZ has made good headway so far.
For example, Johor has designated nine flagship zones in the state, introduced an attractive tax incentive package, and set up the Invest Malaysia Facilitation Centre – Johor to assist investors.
On the Singapore side, a Joint JS-SEZ Project Office has been set up, comprising the Ministry of Trade and Industry, the Economic Development Board (EDB) and Enterprise Singapore, to work directly with its Malaysian counterparts, smoothen regulatory processes and help companies establish themselves on both sides.
“Together, we give investors something distinctive – a location built on the complementary strengths of both Singapore and Johor to create a dynamic economic corridor that can enhance the competitiveness of both our economies,” DPM Gan said.
“This is about neighbours working side by side to create something stronger together.”
DPM Gan said both nations must continue to make the JS-SEZ more business-friendly and future-ready. This means strengthening regulatory processes so that businesses can move faster; improving the ease of cross-border flows of goods and professionals between Singapore and Johor; and strengthening the skills and talent development to raise the quality of human capital in the JS-SEZ, he said.
DPM Gan also noted that both Singapore and Johor have a large base of SMEs, which stand to benefit from the opportunities in the JS-SEZ as well.
“When multinationals invest here, they create opportunities for local enterprises, including suppliers, logistics firms and service providers, to plug into regional and global value chains,” he said.
“This will generate broader economic benefits, and help both our economies build stronger, more resilient industrial ecosystems.”
Enterprise Singapore executive chairman Lee Chuan Teck said that since the signing of the JS-SEZ agreement, the Singapore JS-SEZ Joint Project Office and its Malaysian counterparts have received more than 1,000 inquiries from companies in the manufacturing, data centre and logistics sectors.
He noted that “much has been done” to promote the region.
For example, EDB and the Malaysian Investment Development Authority recently led two joint missions, drawing strong interest and positive feedback from businesses and investors keen to explore new opportunities and partnerships in the region.
Malaysia’s Invest Malaysia Facilitation Centre – Johor serves as a single window for permit applications.
“This streamlined approach has already helped some companies reduce approval timelines from the usual six months to just two,” said Mr Lee.
Efforts are also under way to build a pipeline of skilled talent through partnerships between Singapore and Malaysian institutions.
An example is Singapore Polytechnic’s Enabling Platform Partnership launched in July 2025.
Mr Lee noted that trade associations and chambers of commerce here, such as the Singapore Business Federation and Singapore Logistics Association, have led missions to Johor, while banks like UOB have held seminars to help firms expand their networks and explore new opportunities. “Through these, companies strengthen their networks, gain market insights and uncover new business opportunities,” he said.
Singapore companies operating within the JS-SEZ told The Straits Times that the zone offers several advantages, including a competitive operating environment and proximity to customers in Malaysia.
Mr Naval Sabri, chief operating officer at the dairy business unit of Olam Food Ingredients (ofi), the food ingredients arm of Olam, said ofi has operated a dairy processing facility in the Port of Tanjung Pelepas Free Zone in Johor since 2013.
The company will build a new facility within the same area that, when completed in 2027, will double its dairy production capacity in Johor.
Mr Sabri said ofi currently employs about 250 people in Johor across its manufacturing and research and development operations.
The new facility is expected to create more than 100 skilled jobs, though the full projections are still being assessed.
He added: “ofi expects the new plant to deliver multiple benefits, including enhanced production capacity and flexibility, improved service levels for regional and global customers and continued contribution to Malaysia’s food manufacturing ecosystem.”
Mr Chan Hsien Hung, managing director of logistics provider Sin Chew Woodpaq, said many Singapore clients expanding into Johor require cross-border logistics support.
Sin Chew Woodpaq set up its logistics facility in Seri Alam, Johor, in 2023 to support its growing customer base across the border. It currently employs around 100 people.
“With the company’s presence in Johor, we can seamlessly take over operations once goods are trucked across,” said Mr Chan.
“Some clients operate factories on both sides… We give them flexibility to work with either our Singapore or Johor teams for procurement and logistics needs.
“We also support Malaysian logistics companies that require a Singapore entity for cross-border operations, partnering with them on both ends.”
Mr Chan noted that the firm is expecting continued growth, driven by the region’s expanding semiconductor and infrastructure sectors.
“We aim to grow our customer engagements by 40 to 50 per cent over the next five years, supported by rising cross-border manufacturing activity between Singapore and Malaysia and our continued investment in engineering, automation and regional logistics capabilities,” he said.