The Johor-Singapore SEZ – How businesses are expanding to capture growth

The Johor-Singapore Special Economic Zone (JS-SEZ) is gaining traction, with more regional and global businesses entering or expanding into the area. Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said since the signing of the JS-SEZ MOU in January 2024, Singapore-based companies have committed more than S$5.5 billion in investments into Johor.

Johor’s Chief Minister Onn Hafiz Ghazi said Johor is “on track to hitting approved investments of more than RM100 billion by end of the year, and it will be the highest ever recorded figure for Johor and Malaysia”.
 

At the second JS-SEZ Joint Investment Forum in Singapore on 14 October 2025 that drew more than 700 attendees, both countries reaffirmed their commitment to making it even easier for businesses to grow across borders - with initiatives to develop talent, improve connectivity and smoothen the flow of goods and people. Malaysia’s Minister of Investment, Trade and Industry Tengku Zafrul Aziz announced a fresh suite of perks for business and investors while the JS-SEZ Project Office, comprising the Ministry of Trade and Industry (Singapore), EDB and Enterprise Singapore, will help smoothen regulatory processes and support companies in establishing themselves on both sides.

Executives from Resmed, FedEx, Archisen and Armstrong Industrial Corporation spoke about how the JS-SEZ was making a difference to their business.
 

Smooth set-up of complementary operations in Singapore and Johor

For Armstrong, the decision to have operations on both sides of the Causeway was made around 30 years ago. The precision engineering firm, which serves customers from automotives to healthcare first expanded to Johor in 1996, then grew its operations significantly when relocating a factory from Singapore. Johor’s proximity to Singapore was key. Armstrong’s CEO Phyllis Ong pointed out that clients were able to visit the Singapore office and audit the Johor factory in half a day something possible only because of proximity and smooth customs clearance.

Medical equipment firm Resmed, which was founded in Australia and headquartered in the US, said locating a facility in Johor came naturally, given the proximity between both places and availability of resources. Mr Nigel Cheong, its director for manufacturing and logistics, said the move has had a “huge impact on how we look at our supply chain and our activities across South-east Asia”.
 

What draws companies to the zone?

A 10-minute drive from the Singapore-Malaysia Second Link lies Nusajaya Tech Park, home to 35 global companies. It was started in 2014 by CapitaLand and UEM Sunrise.
 

Mr Chew Peet Mun, CapitaLand Development’s managing director for investment and development, cited the example of a European food company that already had research and development (R&D) running in Singapore, but was expanding rapidly. They were looking at sites around Asia, besides Malaysia, but ultimately decided to anchor in Johor, given its proximity to their existing operations in Singapore.

“When [Johor and Singapore are] combined, there's a synergy and the two areas offer land, human capital and an educated workforce,” he said. Mr Chew added that government support and facilitation for business growth in the JS-SEZ is also a plus point. He sees growing interest from aerospace, engineering, food ingredients, processing and medical-device firms.
 

Ms Esther Teo, Director of the JS-SEZ Programme Office at EDB said logistics firms, manufacturers and data centre operators were among the companies drawn to the zone. The JS-SEZ offered a compelling value proposition not just for existing businesses seeking to expand but also newcomers to Southeast Asia seeking to tap the region’s growth.

So far, Singapore has received more than 300 enquiries from businesses interested to explore opportunities in the JS-SEZ, with nearly 20 already committed from Singapore-based firms.
 

Strong cross-border connectivity

Singapore’s global connectivity has enhanced the appeal of the JS-SEZ. Ms Bianca Wong, regional vice-president for South-east Asia at FedEx, said the JS-SEZ benefits from “good existing infrastructure” and from Singapore’s direct air links.

FedEx launched its first direct Singapore-US all cargo flight in April 2025. She said customers with sensitive shipments “see tremendous value” because goods can move by truck across the Causeway and catch a direct flight to the US a critical advantage for industries such as medical equipment.

For Resmed, the ability of Singapore-based staff to go to Johor to help with the new factory set up was a plus. “Being able to have people going over on a short-term basis, moving more freely, is something really important to ensure companies like us can allocate the right people, activities and processes as freely as possible,” said Mr Cheong. The seamless people flow today, noted Ms Wong, is a competitive advantage not seen everywhere.

Bakery chain Paris Baguette also found benefits. Ms Hana Lee, CEO of Paris Baguette for Asia Pacific, Middle East and Africa, said the group set up its regional HQ in Singapore but runs operations in Johor to obtain halal certification for its Middle East market - leveraging the strengths of both locations.
 

New green shoots in the JS-SEZ

Companies have found that they can explore new growth opportunities through the JS-SEZ. Archisen, GP Energy Tech International and others are tapping opportunities in green manufacturing, agri-tech and supply-chain integration.
 

Mr Vincent Wei, CEO of Singapore-based agritech firm Archisen, said he expects the development of a fully integrated supply chain from primary production to secondary production to processed products and even exporting to other countries.

“I also foresee opportunities in terms of synergies between the different agricultural players - whether you're doing fish or packaging or delivery. These synergies will strengthen the ecosystem … and give it access to not only Singapore and Indonesia, but overseas,” said Mr Wei.

Mr Steven Chiang, CEO of Alpine Renewables, a Singapore-based biofuels company, chose to have operations in JS-SEZ as its feedstock markets are in the region. The group’s headquarters are in Singapore, with operations in Indonesia, Malaysia and Vietnam.

“Johor and the surrounding states have plenty of agriculture and industrial waste from the palm-oil and rubber industries,” Mr Chiang said. “Singapore investors and technology brought in through our R&D can make this a closed-loop, circular economy that really accelerates the green-corridor status.”

Access to ports, refineries and industrial users, businesses said, makes the JS-SEZ an optimal base.
 

Multiple advantages to being in the JS-SEZ

While cost advantages are attractive, they should not be the only reason to expand into the JS-SEZ, said Mr Cheong of Resmed. Rather, companies should see it as part of a strategy for growth in the region.
 

“Now we’re thinking about Malaysia or Johor being the big brother site to support our growth into Vietnam or Thailand.” To get the best out of both worlds, he advised firms to build long-term partnerships with government and local stakeholders, and to invest in local talent.

“Investing in local talent and capabilities will set businesses up for success over the long term,” said Mr Cheong.

Mr Edmund Siau, vice-president of Temasek-backed investment platform GenZero, added that Malaysia presents abundant domestic opportunities.

He noted that on the “hardware” side, Johor, can provide the space for infrastructure for agri-tech farms or data centres, while on the “software” side, Singapore offers private market funding.

"You can clearly see that common thread in terms of collaboration and resources, [with] each place having its competitive advantage.

So, what’s next?

For Singapore SMEs, the JS-SEZ can serve as a springboard for internationalisation, said EDB’s Ms Teo, who cited Q&M Dental’s expansion in Johor as an example. Q&M is Singapore's largest private dental healthcare group with more than 100 clinics island-wide.

Investor interest is also broadening. Not just Western investors but North Asian investors are eyeing the zone, said Mr Andy Cheah, Managing Director and Country Head of wholesale banking at UOB Malaysia.

They are drawn by the region’s talent pool, bilingual management, Singapore’s advanced R&D and Malaysia’s affordable land and utilities.

“These make for a powerful combination unseen in Asean,” he said. “The key is to streamline policies to make things faster and smoother.”
 

The JS-SEZ gives businesses the best of worlds. Access competitive resources in Johor while leveraging Singapore’s global connectivity and robust advanced manufacturing and innovation ecosystems to grow and scale sustainably. Find out more about the JS-SEZ here and connect with EDB to explore how your business can benefit.