Johor-Singapore SEZ draws new wave of investors with 2-in-1 appeal

The Johor-Singapore Special Economic Zone (JS-SEZ) is fast emerging as an attractive investment destination for companies that might not have eyed either market individually.

The zone could also serve as a catalyst for Singaporean and Malaysian companies to expand their presence in the region.

These were the views from panellists who spoke at a session on the second and final day of the Asia Future Summit, held at The Ritz-Carlton, Millenia Singapore hotel.

Ms Esther Teo, director of the Economic Development Board’s (EDB) JS-SEZ Programme Office, said the zone opens up opportunities for the agency to engage with more companies, especially those that might not have considered Johor or Singapore as individual investment destinations.

“Now that we have kind of put the two together, it has become a much more compelling value proposition for companies and businesses. So I can see that it has helped to really broaden the sales funnel for us, allowing us to engage companies in sectors or markets that we have not focused on before,” she said.

In the first half of 2025, Johor already attracted RM56 billion (S$17.2 billion) in investments, primarily driven by initiatives like the JS-SEZ.

Johor investment, trade, consumer affairs and human resources committee chairman, Lee Ting Han, said he saw continued momentum in the JS-SEZ in the quarter ended September, adding that he is confident Johor can meet its target of attracting up to RM100 billion in investments by the end of 2025.

He also said the JS-SEZ could be a good opportunity for companies in Singapore and Malaysia to rethink their economic strategies.

“We have to move past that export-oriented mindset and it’s probably time for us to look inwards, to look at the ASEAN market, if ever, in conjunction with the growth of our population,” he added.

Dr Ng Chin Siau, founder and chief executive of Q&M Dental Group (Singapore), said his firm recently raised S$130 million to support its expansion in Singapore, Johor, and China.

Q&M currently operates in 37 locations in Malaysia, including 17 in Johor, and nine in the JS-SEZ, he said.

“Johor South will be one of the important areas for Q&M to be more involved, in terms of building better facilities,” he said.

Their clinics will serve not only Johor residents, but also those coming from other parts of Malaysia, as well as Singapore, especially after the Johor Bahru-Singapore Rapid Transit System Link is operational, he said.

“If your infrastructure is lining up the whole Johor South... I believe this will be the biggest impact that you will create for the people of both sides, and the people of the entire Malaysia.”

OCBC Malaysia chief executive, Tan Chor Sen, said the JS-SEZ’s proximity to Singapore, a financial centre, is a key draw for investors.

He said that among the businesses that are keen to expand in the zone, 50 per cent are businesses from China.

Johor state economic and investment adviser, Hasni Mohammad, noted that Singapore and Johor have their own strengths.

Multinational companies could base their headquarters and research and development in Singapore, while extending their manufacturing to Johor for the cost benefit.

Initiatives are also in place to make the JS-SEZ an attractive location to do business.

Ms Teo said the Invest Malaysia Facilitation Centre-Johor can help companies navigate across state and federal agencies, reducing bureaucratic hurdles for businesses.

She added that EDB is also working with its Malaysian counterparts to build a talent pipeline for companies in the zone.

“Where we can influence and we can control, we’re making those steps to improve, and hopefully, that makes a difference for the value proposition that we are providing.”
 

Source: The Straits Times ©️ SPH Media Limited. Permission required for reproduction.