SINGAPORE: There is overwhelming interest from Singapore businesses to set up operations and invest in Johor as part of the proposed Johor-Singapore Special Economic Zone (JS-SEZ) - with over nine in 10 firms viewing the southern Malaysian state as an attractive destination - according to a report released by the Singapore Business Federation (SBF).
However, the report outlined that most of the businesses are anticipating concerns relating to sourcing skilled and technical workers there, congestion at the land crossings delaying the movement of people and goods as well as difficulty in handling tax issues.
Findings of the report were released at a JS-SEZ Joint Investor Forum on Thursday (Jul 11) and is based on SBF’s engagements with 160 Singaporean businesses across various industries. Key findings revealed that 93 per cent of respondents view Johor as an attractive investment destination, with half of them already operating in the state.
In January, Singapore and Malaysia signed a Memorandum of Understanding (MOU) on the JS-SEZ, which is expected to offer both fiscal and non-fiscal incentives like tax breaks and easier travel between the two countries.
Malaysia’s Economy Minister Rafizi Ramli - who is heading SEZ negotiations for his country - said at an event in Kuala Lumpur on Wednesday that the signing of the agreement is on track for September, with officials from both sides “burning the midnight oil” to iron out the finer details ahead of the Malaysia-Singapore Leaders’ Retreat that month.
Speaking at the forum on Thursday, Chairman of JS-SEZ Singapore Business Working Group (SBWG) Teo Siong Seng said: "The enthusiastic response to our report clearly signals the JS-SEZ's great potential for our region. This isn't just another project - it's a potential game-changer for both Malaysia and Singapore.
“This is about more than just closer integration - it's about crafting an economic powerhouse that harnesses our complementary strengths on a sustainable basis. By bridging our economies, we're creating new opportunities that will benefit businesses on both sides of the Causeway,” he added.
