Singapore-based companies have committed over $5.5 billion worth of investments into Johor, announced Gan Kim Yong, deputy prime minister and trade minister, at the second Johor-Singapore special economic zone (JS-SEZ) joint investment forum on Oct 14.
In his keynote address, Gan notes that the JS-SEZ has made “good headway” following the designation of nine flagship zones in January and the establishment of the joint JS-SEZ project office in April. The joint JS-SEZ project office is made up of Singapore’s Ministry of Trade and Industry, the Economic Development Board (EDB) and Enterprise Singapore, and will complement Malaysia’s Invest Malaysia Facilitation Centre, which was established in February.
“This partnership is already taking shape on the ground,” says Gan, highlighting three companies that are looking to tap into the JS-SEZ.
The first is Archisen, a Singapore-based agritech company which develops and operates smart indoor vertical farms. Archisen had signed a memorandum of understanding (MOU) with Malaysian government-linked Southern Catalyst before the forum to develop a 200-acre modern agricultural hub in Sedenak.
Global logistics firm, Kuehne + Nagel, has also developed an integrated transport and logistics network across Singapore and Johor, which will enable it to offer cost-effective, scalable and resilient supply chain options, Gan adds.
Finally, medtech firm, ResMed, will operate on both sides of the Causeway. This will allow the US- and Australian-based company to leverage Johor’s cost and scale advantages with Singapore’s manufacturing and logistics capabilities.
In a fireside chat later at the forum with Johor's chief minister, Hafiz Ghazi and moderated by Singapore Business Federation's chief executive officer (CEO) Kok Ping Soon, Dr Beh Swan Gin, permanent secretary from the Ministry of Trade and Industry, said that the project office established has focused on companies that can benefit from the twinning operations in Johor and Singapore.
When asked where the $5.5 billion came from, Beh said it came from different sectors such as food manufacturing and food processing, like Archisen, as well as data centres.
JS-SEZ a ‘win-win’ for Malaysia and Singapore
See also: Johor eyes up to RM100 bil in investments by year end, banking on JS-SEZ momentum
In his welcome address, Lee Chuan Teck, executive chairman of Enterprise Singapore, called the JS-SEZ a “win-win” proposition for both Malaysia and Singapore.
Noting that Johor and Singapore are “natural partners” linked by the two land crossings, by history, family and economic ties, the JS-SEZ makes sense at different levels, Lee said. “At the geopolitical level, it is a firm rejection of the zero-sum contestation that is becoming more prevalent globally.”
“At the economic level, the SEZ builds on our complementary strengths: Johor’s abundance in talent and resources; Singapore’s capital and global connectivity to present a compelling destination for global investments,” he adds.
Since the signing of the agreement in January, Lee said that the JS-SEZ joint project office in Singapore and its Malaysian counterparts have received over 1,000 enquiries across sectors like manufacturing, logistics, data centres and others.
