Johor-Singapore Economic Zone draws billions as Malaysia eyes high-value growth
ISKANDAR PUTERI: The Johor-Singapore Special Economic Zone (JS-SEZ) is rapidly gaining traction as global investors bet on Johor's strategic location and policy stability to anchor their expansion into Southeast Asia.
Speaking at the Nikkei Forum Medini Johor 2025, Invest Johor chief executive officer Natazha Harris said the agency had received over 400 investment enquiries from multinational companies since the zone's formal establishment in January.
"Regardless of global headwinds, Johor is seen as a pocket of stability and a strong business hub," Natazha said, adding Malaysia offers peace, stability, resilience and real opportunities.
He was referring to the escalating geopolitical tensions and shifting trade dynamics, with tariffs imposed by U.S president Donald Trump.
The JS-SEZ, a joint initiative between Prime Minister Datuk Seri Anwar Ibrahim and Singapore's Prime Minister Lawrence Wong, spans 3,571 sq km, nearly five times the size of Singapore.
It aims to catalyse bilateral integration and position southern Malaysia as a high-value investment gateway to Asean.
The momentum is already visible. According to the Malaysian Investment Development Authority (MIDA), Johor pulled in RM48.5 billion in foreign direct investment (FDI) in 2024 -a 13 per cent increase from the year before.
MIDA deputy chief executive officer Sivasuriyamoorthy Sundara Raja said in just the first quarter of 2025, FDI into Johor stood at RM27.4 billion, driven by the services and manufacturing sectors.
"With facilitation measures in place, Malaysia is well-positioned to attract quality investments," he said.
Meanwhile, Iskandar Investment Bhd chief executive officer Datuk Idzham Mohd Hashim, said Malaysia does not view Singapore as a competitor, but a strategic partner in a "natural symbiotic relationship."
"We are not 'taking' companies from Singapore," he said. "We are working with Singaporean firms and authorities to draw multinationals to the region.
"Johor offers up to 60 per cent cost savings compared to Singapore, and about 30 per cent compared to Kuala Lumpur," Idzham said.
He added that the JS-SEZ's vision is not merely to be a low-cost extension of Singapore, but to drive high-value growth.
Malaysia is targeting 100 strategic investment projects and 20,000 skilled jobs over the next decade.
Proposed incentives include a 5 per cent corporate tax rate for 15 years on new manufacturing investments, and a 15 per cent income tax for knowledge workers.
Iskandar Regional Development Authority chief executive officer Datuk Noorazam Osman, said almost 300,000 Johoreans cross into Singapore daily for higher wages.
"This time, we are tightening bilateral coordination and adopting sector-specific approaches."
The JS-SEZ is prioritising digital economy, advanced manufacturing, logistics, and green energy.
"The area enjoyed a spike in data centre investments, with tech majors including ByteDance, Microsoft, and Japan's telecommunication company- Nippon Telegraph and Telephone Corporation announcing major expansion plans.
The two-day forum co-organised by IIB and Japan's Nikkei Inc. concludes today.
The event was hosted by the Johor state government with support from Invest Johor, the Johor Economic Planning Division and the Iskandar Puteri City Council.
It is part of ongoing efforts to anchor Johor as a regional innovation hub, supporting the JS-SEZ's vision of deeper cross-border integration with Singapore.
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