Johor on track for RM100 billion investment target as H1 approvals hit RM59.4 billion across diversified sectors

JOHOR: Johor is on course to achieve its RM100 billion (S$31.16 billion) annual investment target following RM59.4 billion in approved investments in the first half of 2026, a RM3.3 billion increase over the same period last year, according to State Investment, Domestic Trade, Consumer Affairs and Human Resources Committee Chairman Lee Ting Han, as reported by Invest Johor, citing The Star.

Of the total, RM 11.8 billion came from the manufacturing sector while RM47.6 billion was from the services sector, Lee said.

He cited recent figures from the Malaysian Investment Development Authority as evidence that Johor’s economic growth is not driven by any single sector. “Our growth is supported by the simultaneous development of manufacturing, logistics, the digital economy, construction, tourism and consumer activities,” he said, pointing to a breadth of economic activity that distinguishes the state’s growth from a narrower data centre or property-led story.

Johor’s economic track record

Johor recorded 8% economic growth last year against Malaysia’s national rate of 5.2%, making it the fastest-growing state in the country for two consecutive years. Its GDP expanded from RM158.3 billion in 2024 to RM170.9 billion in 2025, maintaining its position as Malaysia’s third-largest economy. On Aug 28, MIDA announced that Johor ranked second in the country in approved investments, with growth supported by the JS-SEZ and the upcoming RTS Link.

Lee said the next phase of Johor’s economic development must move beyond simply attracting investments toward building complete industry ecosystems. “Once major investments are established, they must further drive the growth of local suppliers, technology, talent and services so that investments can be translated into local orders, higher productivity and high-paying jobs,” he said, as quoted by Invest Johor.

The shift in emphasis from headline investment figures to downstream economic impact reflects a maturing approach to the JS-SEZ and the Johor Economic Transformation Plan, both of which are designed to ensure that investment benefits reach Johoreans through jobs, supplier development, and skills growth rather than remaining concentrated in foreign-owned facilities.

Why this matters for Singapore

Johor’s investment diversification, with services accounting for RM47.6 billion of H1 approvals against manufacturing’s RM11.8 billion, signals that the state is developing economic depth beyond the manufacturing and data centre categories that have dominated JS-SEZ headlines.

A services-led growth story in Johor is one that intersects more directly with Singapore’s own economic strengths in finance, logistics, and professional services, creating more points of complementarity and potential collaboration across the Causeway than a purely industrial investment profile would offer.