Johor–Singapore SEZ Gears Up To Be ASEAN's ‘Mini Korea'
Malaysia is pushing for the Johor–Singapore Special Economic Zone (JS-SEZ) to go beyond traditional cross-border investments, aiming to position the bilateral zone as a regional high-tech manufacturing and innovation hub with global relevance.
Deputy Minister of Investment, Trade and Industry Liew Chin Tong told the Malaysia–Singapore Chinese Chambers of Commerce Business Forum that the JS-SEZ must not become 'merely a relocation of low-end manufacturing from Singapore to Johor,' but should instead serve as a platform for deep industrial integration and advanced production.
The minister's remarks signal potential investment opportunities in strategic sectors such as semiconductors, renewable energy technologies, artificial intelligence and advanced materials; areas he said are now central to global competition.
Liew said Malaysia and Singapore both maintain over 20% of GDP from manufacturing, a rare trait among semi-advanced economies, giving them a unique industrial base to leverage. He proposed a joint ecosystem capable of producing regional champions akin to Samsung, Huawei or TSMC, which could reshape Southeast Asia's role in global supply chains.
'Together, we can serve as a mini Korea in the global supply chain,' he said, pointing to collaborative value-add potential that goes beyond their geographical size.
The business case also hinges on aligning financial markets and regulations with industrial policy. Liew highlighted the need for a 'robust financial ecosystem' that supports technology investments, signalling future roles for Malaysian capital markets and regulators like the Securities Commission to back industrial growth.
His call for more strategic integration comes as firms reassess supply chains amid global uncertainty, with Malaysia and Singapore potentially benefitting from nearshoring and diversification trends.
With formal JS-SEZ agreements signed earlier this year, industry players and investors will be watching closely for follow-up policies and incentives that translate political intent into bankable cross-border projects. Related
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