MALAYSIA: Singapore and Malaysia have taken a significant step towards deepening economic ties with the signing of the Johor-Singapore Special Economic Zone (JS-SEZ) agreement on January 6, 2025. The initiative aims to enhance cross-border trade, investment, and job creation, leveraging Singapore’s position as a global business hub and Johor’s vast land and resources.
The JS-SEZ will focus on 11 key sectors, including manufacturing, digital economy, financial services, and renewable energy, creating new opportunities for businesses and workers in both countries. According to Mothership, the agreement is designed to improve the flow of goods and workers, with both governments working to streamline logistics, border clearance, and workforce mobility.
This new economic zone marks a milestone in the long-standing Singapore-Johor partnership, reinforcing the complementary strengths of both regions.
Singapore businesses expand into Johor
Several Singaporean businesses have already tapped into Johor’s resources while keeping their headquarters in Singapore.
Old Chang Kee, a household name in snack foods, has been running a factory in Johor since 2011 and views the SEZ as an opportunity to scale up.
“Johor might even provide some relief from Singapore’s high-cost base,” said Philip Chow, director of Malaysia operations at Old Chang Kee, highlighting the cost advantages of operating in Malaysia.
Similarly, tech company DayOne Data Centre has expanded into Johor’s Nusajaya Tech Park and Kempas Tech Park.
Jimmy Yu, senior vice president of strategy and business development at DayOne, stated that the SEZ would “create opportunities for Singaporeans, particularly in high-tech sectors such as AI, cloud computing, and data centre management.”
Bridging the skills gap and creating jobs
One of the key concerns surrounding the JS-SEZ is workforce development. With businesses expanding into Johor, the need for skilled talent in industries such as technology and manufacturing is growing.
To address this, the Johor Talent Development Council has been established to train and upskill local workers. Singapore’s Institute of Technical Education (ITE) Education Services signed an MOU with the Johor Skills Development Centre in January 2025 to enhance cooperation in technical and vocational training.
Singaporean companies looking to expand can tap into government grants like the Market Readiness Assistance Grant and the Enterprise Financing Scheme to ease their entry into the JS-SEZ.
Improving border crossings: E-gates and paperless clearance
With an estimated 350,000 people crossing the Singapore-Johor border daily, congestion at the Causeway and Tuas Second Link has long been a major issue. Recognising this, both countries have introduced e-gates, passport-free QR code clearance, and paperless goods processing. Singapore is also building a new Customs, Immigration, and Quarantine (CIQ) facility at Woodlands to improve efficiency.
These initiatives aim to facilitate smoother travel and trade as the SEZ ramps up economic activity.
Praise and concerns over infrastructure and flooding
While many welcome the SEZ’s economic potential, some Singaporeans remain sceptical about its immediate benefits.
“How does it benefit Singaporeans?” one commenter on Facebook questioned.
Some fear that existing infrastructure is not ready for the increased traffic from the SEZ.
“They still have not resolved the flooding issue, and the road infrastructure still leaves much to be desired. Imagine more people and vehicles entering the SEZ without improving the roads,” one person commented.
Another referenced recent floods in Johor, saying, “When Johor floods, the SEZ will also go underwater.”
These concerns suggest that while the SEZ offers strong economic potential, authorities must address Johor’s infrastructure challenges to ensure long-term success.
JS-SEZ: An opportunity with challenges ahead
The Johor-Singapore Special Economic Zone presents exciting opportunities for businesses, workers, and investors on both sides of the Causeway. However, concerns about border congestion, infrastructure, and flood resilience must be addressed for the initiative to achieve its full potential.
As businesses expand and governments refine workforce development and border processes, ongoing investment in infrastructure and flood mitigation will be crucial.
For Singaporeans and Malaysians, the JS-SEZ represents more than just an economic partnership; it is a chance to strengthen cross-border ties and unlock new opportunities in an increasingly interconnected region.
Read also: Johor man halts traffic to warn motorists about massive pothole on expressway—Netizens react
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