JS-SEZ: A New Chapter In Malaysia's Regional Economic Collaboration

By Nur Fadhliana Shaari

JOHOR BAHRU, 8 Jan (Bernama) -- The signing of the Johor-Singapore Special Economic Zone (JS-SEZ) agreement yesterday marks a new chapter in Malaysia's collaborative efforts to drive regional economic development.

Johor State Investment, Trade, Consumer Affairs, and Human Resources Committee chairman Lee Ting Han said this move aligns with global trends that emphasise economic integration, sustainable development, and high technology.

"This agreement also responds to the global surge in demand for clean technology and the digital economy, positioning Johor as a key player in the increasingly competitive ASEAN economic landscape.

"It also reflects the strengthening of diplomatic ties between the two strategic regions, enhancing the resilience of the regional supply chain, and creating job opportunities for the local communities," he said when contacted by Bernama.

He added that the agreement leverages the Johor-Singapore advantages such as geography, resources, or existing strengths to attract high-value investments, particularly in sectors like advanced manufacturing, green technology, logistics, finance, tourism, energy, and smart automation.

The state government, according to Lee, is already drafting a development plan for the Special Economic Zone to ensure sustainable and comprehensive growth targets are met.

“We expect investment to increase gradually over the next five to ten years, depending on implementation phases and global investor interest,” he said.

In the initial stages, Lee explained the focus would be on developing essential infrastructure such as the Johor-Singapore Rapid Transit System (RTS) and supporting facilities in the JS-SEZ area, in addition to attracting investments in sectors where Johor already has an established ecosystem such as petrochemicals, chemicals, data centres, and medical devices.

“The RTS infrastructure project will accelerate the movement of labour, investors, and tourists between the two regions, boosting Johor's competitiveness as a regional economic hub,” he added.

Lee also highlighted that the RTS is one of the first cross-border projects in the region, reflecting ASEAN’s vision to strengthen economic and social integration by developing infrastructure that facilitates trade and cross-border relations.

This, in turn, is expected to positively impact the business sector, investment, and smart city development in both Johor and Singapore.

Overall, Lee said the JS-SEZ establishment is a strategic move to enhance the state's global competitiveness, reducing reliance on traditional economic resources.

"Our goal with JS-SEZ is to ensure inclusive and sustainable economic growth while improving the well-being of the people.

"Johor aspires to become the leading hub for green technology and high technology in ASEAN, attracting high-quality investments that not only drive the economy but also create value-added job opportunities for the local people," he said.

-- BERNAMA