JOHOR BAHRU: Even before the Johor-Singapore Special Economic Zone (JS-SEZ) deal was finalised, OCBC had already observed companies looking to establish a presence in Johor. Now, with the RTS Link nearing 50 per cent completion and the Gemas-Johor Bahru Electrified Double Track Project (Gemas-JB EDTP) on track for completion in the third quarter if this year, excitement has grown in the business community.
According to The Star, companies are considering relocating or forming partnerships with local firms.
In early January, days after the JS-SEZ agreement was signed, Malaysia’s Forest City Special Financial Zone (SFZ) drew interest from 11 local and international companies looking to set up operations there.
However, locals are increasingly worried about rising living costs and soaring land prices in the area amid the investment boom. Many question whether wages will rise to match the higher costs and if the focus will shift to high-rise developments aimed at foreign buyers.
The Star reported that some local developers have already reported sharp land price increases, particularly in Johor’s city areas, due to interest from overseas investors.
Questions have also been raised about how ongoing projects in Iskandar Malaysia will be affected.
Meanwhile, The Star’s Nelson Benjamin highlighted concerns about Johor’s readiness for the influx of people and businesses. With at least 10,000 people expected to arrive in Johor every hour once the RTS Link is completed, questions remain about how they will move around the city.
Benjamin pointed out that while Johor has key transport hubs, its main roads – Jalan Skudai, Jalan Tebrau, Pasir Gudang Highway and Eastern Dispersal Link – are already congested during peak hours. According to him, expanding road networks and improving public transport, including the autonomous rail rapid transit, will be crucial.
He also mentioned concerns about water and electricity supply, especially with rising demand from data centres and ongoing commitments to Singapore.
Beyond infrastructure, Johor must equip its workforce with the right skills by updating its syllabus to train students in artificial intelligence (AI) and advanced technology. He noted that addressing the rising cost of living and keeping the public informed on JS-SEZ developments will also be key.
The JS-SEZ, launched earlier this year, covers six Johor districts, spanning about 3,588 square kilometres (sq km), and is four times the size of Singapore. It aims to attract 50 to 100 major projects, ideally worth at least RM200 million (S$60.22 million) each, over the next decade, creating around 20,000 skilled jobs.
Malaysia and Singapore will collaborate to promote 11 economic sectors, including business services, digital economy, education and health, energy, financial services, food security, green economy, logistics, manufacturing, and tourism. Incentives are also being offered to attract multinational companies.
On Feb 18, Johor launched the Invest Malaysia Facilitation Centre Johor (IMFC-J) in Forest City as a one-stop facility to assist investors.
On the same day, it was announced that 26 more e-gates were added at the Customs, Immigration and Quarantine (CIQ) Complex in the Sultan Iskandar Building (BSI).
Other recent major projects include the RM2.6 billion Bukit Chagar Integrated Mixed-Use Development at the Johor Bahru RTS Link terminus, which will connect to Singapore’s Woodlands North MRT station. The project includes education facilities, four towers, a health and wellness hub, a hotel, malls, and serviced apartments.
Battery technology and energy storage solutions firm Gold Peak Technology Group will also invest RM670 million in a manufacturing and research and development (R&D) facility. /TISG
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