Singapore-based firms commit over S$5.5 billion of investments in Johor after JS-SEZ deal

Companies based in the Republic committed more than S$5.5 billion worth of investments in Johor, since the agreement to finalise a deal to set up the cross-border special economic zone between the neighbouring countries was inked in January last year.

The figure was revealed on Tuesday (14 Oct) at the second Johor-Singapore Special Economic Zone (JS-SEZ) joint investment forum. The first meeting took place in Johor Bahru in April.

For reference – though not a direct comparison – Johor drew in more than RM104.5 billion (S$32.1 billion) in approved private investments from January 2024 to June 2025, data from the Malaysian Investment Development Authority (MIDA) indicated.

This year’s event was held at the Sands Expo and Convention Centre, attended by Singapore’s Deputy Prime Minister and Minister for Trade and Industry (MTI) Gan Kim Yong and Malaysia’s Minister of Investment, Trade and Industry Tengku Zafrul Aziz.

Hundreds of business leaders, investors, policymakers, and academics from Singapore and Malaysia attended the forum.

Enterprise Singapore chairman Lee Chuan Teck opened with a welcome address, and the forum continued with a fireside chat with Johor Chief Minister Hafiz Ghazi and MTI Permanent Secretary (Trade and Industry) Beh Swan Gin, moderated by Singapore Business Federation chief executive officer Kok Ping Soon.

DPM Gan, in his keynote address, noted that the zone has made good headway and that both countries look forward to more investments in the months ahead.

“We will attract and anchor flagship projects for key sectors that we want to grow, such as advanced manufacturing, logistics, green industries, and digital services,” he said.

The minister added: “These projects will demonstrate the potential of the JS-SEZ to other investors, showcasing how firms can co-locate, grow their capacity, and expand seamlessly across both sides of the Causeway to tap into regional markets.”
 

Progress thus far

DPM Gan gave a recap of several milestones, including Singapore’s establishment of a joint project office – comprising MTI, the Economic Development Board (EDB), and Enterprise Singapore – to smoothen regulatory processes and support companies in establishing themselves on both sides.

Meanwhile, the southern state designated its nine flagship zones, introduced a tax incentive package, and launched its Invest Malaysia Facilitation Centre-Johor.

The Singapore office and its Malaysian counterparts have received more than 1,000 inquiries, across sectors including manufacturing, logistics, and data centres, since the signing of the agreement, said Enterprise Singapore chairman Lee.

He added that both countries have started to promote the region together, with EDB and MIDA recently leading two joint missions that drew strong interest and positive feedback from businesses and investors.

He added that both countries have started to promote the region together, with EDB and MIDA recently leading two joint missions that drew strong interest and positive feedback from businesses and investors.
 

Twinning operations

The partnership between both countries is already taking shape on the ground, added DPM Gan.

He cited the example of Singapore-based agritech company Archisen, which intends to develop a 200-acre modern agricultural hub in Sedenak.

Archisen, which develops and operates smart indoor vertical farms, signed a memorandum of understanding with Malaysian government-linked Southern Catalyst before the forum. The project will apply indoor farming technologies to boost food production.

Separately, Swiss-based global transport and logistics firm Kuehne+Nagel developed an integrated transport and logistics network across Singapore and Johor.

DPM Gan also brought up how US- and Australia-based medical technology firm ResMed operates on both sides of the Causeway, complementing Johor’s cost and scale advantages with Singapore’s advanced manufacturing and logistics capabilities. This allows it to assemble and export its products to global markets more competitively.
 

Small and medium-sized enterprises (SMEs) have not been forgotten.

Noting that Singapore and Johor both have a large base of such firms, DPM Gan said the intention is for SMEs to benefit from the zone’s opportunities as well.

“When multinationals invest here, they create opportunities for local enterprises – suppliers, logistics firms, and service providers – to plug into regional and global value chains,” he explained.

“To both Singapore and Malaysia, the JS-SEZ represents the creation of a connected business community that can grow together and compete more effectively in a changing global economy,” said the minister.

The zone complements Singapore’s industrial transformation efforts, allowing companies room to scale while staying anchored to the Republic’s innovation and financial ecosystem.

For Johor and Malaysia, the megaproject is a powerful engine to woo new investments, foster technology partnerships, and develop skilled talent, DPM Gan added.

He concluded: “At a time when global trade is slowing and protectionist pressures are rising, the JS-SEZ stands as a strong illustration of what countries can achieve when they choose cooperation over contestation, and partnership over protectionism.”
 

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