Malaysian SMEs To Benefit From Budget 2026 Boost For JS-SEZ - Tengku Zafrul

By Nur Ashikin Abdul Aziz

SINGAPORE, Oct 14 (Bernama) -- An additional RM200 million allocated to the Strategic Co-Investment Fund (CoSIF) under Budget 2026 can be leveraged by Malaysian small and medium-sized enterprises (SMEs) in the Johor-Singapore Special Economic Zone (JS-SEZ).

Investment, Trade and Industry Minister (MITI) Tengku Datuk Seri Zafrul Abdul Aziz said the funding enables co-investments in high-impact projects by Malaysian SMEs in the JS-SEZ, particularly those that contribute to strengthening the cross-border industrial ecosystem between Johor and Singapore.

“CoSIF is also aimed at enabling SMEs to scale up and go global, particularly in areas such as capacity expansion, tech adoption, and sustainability.

“This financing effort will complement the policy and infrastructure incentives being introduced under the JS-SEZ, ensuring a more holistic enabling framework,” he said in his keynote address at the 2nd JS-SEZ Joint Investment Forum, held at the Sands Expo and Convention Centre, here today.

Tengku Zafrul said that under the New Industrial Master Plan 2030 (NIMP 2030), CoSIF will serve as a key financing instrument for industrial growth within the JS-SEZ.

He noted that CoSIF has a new matching/risk-sharing ratio and financing rate that is expected to attract greater private sector participation and encourage better investment leverage in projects aligned with NIMP’s industrial transformation goals.

In addition, to accelerate high-impact investments in the JS-SEZ, the minister said all manufacturing projects for non-sensitive industries within the zone’s identified economic sectors will be granted fast-track approval of the Manufacturing Licence (ML) within seven working days.

The required “No Objection Letter” (NOL) from the Johor state government for ML issuance will also be issued within seven working days.

“Such qualifying projects will automatically receive Johor Super Lane facilitation, ensuring coordinated priority handling across state and federal agencies under a single facilitation channel,” said Tengku Zafrul.

He also said that the government is exploring ways to enhance the Malaysia-Singapore Business Development Fund (MSBDF) to enable more SMEs, particularly those looking to expand regionally, to benefit from joint business development opportunities.

“We aim to facilitate collaborations, joint ventures, and tech exchange between Malaysian and Singaporean enterprises, anchored within the zone’s framework.

“We look forward to engaging with our Singapore counterparts to explore how this mechanism can be better leveraged moving forward,” said Tengku Zafrul.

Additionally, the government has allocated RM650 million through the Skills Development Fund Corporation (PTPK) to support talent development in target sectors under NIMP 2030. A portion of this funding may be directed towards talent development initiatives for the JS-SEZ.

He said this initiative is expected to benefit approximately 25,000 trainees, particularly in sectors such as artificial intelligence (AI), electric vehicles (EVs), and semiconductors – all of which also support the JS-SEZ’s industrial ambitions.

MITI will soon begin working closely with the Ministry of Human Resources, the Johor Talent Development Council (JTDC), and other relevant agencies to tailor programmes that match industry needs and prepare Malaysia’s talent for cross-border, innovation-driven opportunities, said Tengku Zafrul.

Meanwhile, under the Investor Pass initiative led by the Malaysian Investment Development Authority (MIDA), eligible foreign investors can now obtain a Multiple Entry Visa (MEV) valid for up to 12 months via the Xpats Gateway platform, launched in April this year.

The minister said the initiative is open to new, existing, and potential investors across all sectors and is designed to facilitate travel and engagement, particularly during project planning and site visits.

Additionally, MIDA can now proactively offer the Investor Pass to multinational companies and prospective investors in high-value sectors, including electrical and electronics (E&E), as well as those qualifying under the Family Office incentive approved by the Securities Commission of Malaysia.

The one-day JS-SEZ Joint Investment Forum, co-organised by Singapore and Malaysia, was also attended by Singapore Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong, and Johor Menteri Besar Datuk Onn Hafiz Ghazi.

-- BERNAMA