JS-SEZ a strategic buffer amid US-China trade fallout, says Singapore DPM Gan

New Straits Times

21-04-2025

JOHOR BARU: The Johor-Singapore Special Economic Zone (JS-SEZ) offers a crucial lifeline for regional businesses to bolster supply chain resilience amid rising global trade tensions, said Singapore Deputy Prime Minister and Minister for Trade and Industry (MTI) Gan Kim Yong.
Delivering his keynote address at the JS-SEZ joint business and investment forum in the Persada Johor Internation Convention Centre here today, Gan said the escalating tariff war between the United States and China had choked off trade between the world's two largest economies, with ripple effects on businesses across Southeast Asia.
"The JS-SEZ presents an opportunity for businesses to strengthen supply chains so they can better respond to volatility and continue growing," he said, calling the initiative "important and timely" in the face of growing global protectionism.
Gan warned that Washington's newly-announced "reciprocal tariffs" on imports — including a 145 per cent tariff on Chinese goods and a 10 per cent tariff on Singapore's exports — had triggered retaliatory moves by Beijing and others, putting the multilateral trading order at risk.
Malaysia, he said, is also affected, with a 24 per cent US tariff now imposed on its exports.
"Unilateral trade actions threaten to destabilise the rules-based trading system. If countries trade only on their own terms, smaller economies will always be at the mercy of larger ones," he said.
In contrast, the JS-SEZ, encompassing 3,571 sq km of southern Johor, aims to streamline cross-border investment, simplify customs processes, and improve people and goods movement. It targets high-impact sectors including advanced manufacturing, logistics, and digital economy.
Gan cited examples of companies leveraging the zone's advantages, including.
Singapore-based agritech firm Archisen, had partnered with Johor Corporation's FarmByte to build a smart indoor farm in Nusajaya producing 300 tonnes of leafy greens annually.
Agrocorp, in collaboration with Japan's Megmilk Snow Brand, is setting up a plant-protein facility in Tanjung Langsat to manufacture 6,000 tonnes of sustainable protein from pulses.
South Korea's SPC Group, has also split its operations between Johor (halal manufacturing plant) and Singapore (Research & development and headquarters).
Singapore has set up a dedicated JS-SEZ project office via MTI, Enterprise Singapore, and Singapore economic Development board to assist its firms in tapping into the zone.
This complements Malaysia's own Invest Malaysia Facilitation Centre in Johor.
Gan said the need for Malaysia and Singapore to "double down" on connectivity, regulatory streamlining, and workforce development to attract more investment, including from businesses not yet present in either country.
Present at the forum were Investment, Trade and Industry Minister Tengku Zafrul Aziz, his deputy Liew Chin Tong, and Johor Menteri Besar Datuk Onn Hafiz Ghazi.
The event featured panels on regional wealth creation, investment attraction, and supply chain resilience in Asean.