Malaysia, Singapore Collaboration Key To Johor Bahru's Economic Growth
PETALING JAYA, Jan 17 (Bernama) -- Johor Bahru’s future as a major economic hub will largely depend on the successful collaboration between Malaysia’s federal and state governments, as well as their partnership with Singapore.
Knight Frank Malaysia executive director Allan Sim said the real driver of Johor Bahru’s growth will be the alignment of policies between the two countries.
“Whether Johor Bahru will become a great city depends on how the federal and state governments work together with Singapore, and how (this) benefits both countries.
“It’s taken some time for both countries to agree on the tax regime, but once the system works well for both, Johor Bahru will be able to move very fast compared to other cities,” he said in a panel discussion at the annual property developers conference “The CEO Series: Economy & Business Forum 2025” organised by real estate training, research and education think tank REHDA Institute yesterday.
Johor Bahru City Council is one of the six local authorities included in the Johor-Singapore Special Economic Zone (JS-SEZ) agreement which aims to boost trade and strengthen economic connectivity signed on Jan 7.
Previously, the Finance Ministry and the Johor state government announced an incentive package for the JS-SEZ effective Jan 1, 2025, in which investors will be eligible for a suite of incentives, including a special corporate tax rate, flagship development focus and a special tax rate for knowledge workers.
Meanwhile, in a separate session, Sim said Johor Bahru’s high-rise residential sector has shown marked improvement, particularly in projects near the Johor Bahru city centre.
“The upcoming Rapid Transit System (RTS) Link connecting Johor and Singapore has significantly improved accessibility and is driving strong housing demand in the area,” he said.
In the same panel discussion, Colliers (Hong Kong) managing director CK Lau said Hong Kong’s residential sector made significant progress in addressing its housing shortage, thanks to extensive land creation activities.
“Prices have dropped in the residential sector by around 30 per cent over the last two, three years due to factors such as rising interest rates and a strong US dollar, which affects the Hong Kong dollar’s peg,” he said.
Prices have, nevertheless, stabilised in recent months because of government measures, which include the easing of certain duties and the encouragement of foreign investments.
Even as Hong Kong’s housing prices have become more affordable in recent months, he said it remains challenging for younger graduates, particularly those with just a few years of working experience, to afford housing in the city.
Another panellist, Australia’s property services company Charter Keck Cramer’s head of research and national executive director Richard Temlett compared Australia’s build-to-rent model to those in other global jurisdictions while Savills (Vietnam) managing director Neil MacGregor shared his insights on Vietnam’s real estate development potential and its market outlook.
The panel discussion was moderated by UM Land Bhd’s Datuk Charlie Chia.
The 2025 CEO Series brought together over 350 senior stakeholders including representatives from the private sector, associations and government authorities.
-- BERNAMA
