Malaysia hopes to draw back talent to power JS-SEZ
[SINGAPORE] Malaysia hopes to draw back some of the hundreds of thousands of Malaysians who cross the causeways daily, by tapping them to power the Johor-Singapore Special Economic Zone (JS-SEZ), said panellists on Wednesday (Jun 18).
However, Idzham Mohd Hashim, president and chief executive officer of Iskandar Investment (IIB), stressed that this was not about competing with Singapore, but about creating a 'symbiotic relationship' that benefits both countries.
He was speaking on a panel titled 'Johor Focus: Building the Future with JS-SEZ', alongside Mohd Noorazam Osman, CEO of the Iskandar Regional Development Authority (IRDA) and former mayor of Johor Bahru.
The discussion was part of the Nikkei Forum held in Medini, Johor, and moderated by the Japanese news organisation's senior producer Kaori Takahashi.
IIB is leading the infrastructure development in the JS-SEZ, while IRDA oversees planning and coordination.
The agreement to establish the SEZ was signed by Singapore and Malaysia in January with the aim of having both countries work together to attract new investment projects from around the world.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
The SEZ covers an area of more than 3,500 sq km, roughly four times the size of Singapore.
Idzham said that while the zone's infrastructure – including roads, power supply, and fibre optic networks – is already in place, what is still missing is the 'software'.
'Most of the businesses who come here… they ask: 'Do you have (the) talents?'' said Idzham. 'We do have (the) talents, because 300,000 of them go to Singapore every day.'
Both Idzham and Noorazam pointed to plus points in Johor that could woo back these residents, such as more industry-relevant training, increased job opportunities through business expansion, and the lower cost of living in the state.
For instance, Noorazam said the Johor Talent Development Council is working with academic and vocational institutions, as well as industry players, to ensure that training matches demand.
While he did not go into detail, he added there are also plans to offer tax incentives and to work towards a minimum starting salary of RM4,000 (S$1,210) for graduates in Johor.
He added that investors should see the lower wage expectations – at around 50 to 75 per cent of Singapore's salary levels – as part of the SEZ's broader cost advantage.
In a separate panel discussion at the forum titled 'Building Digital Nations: Innovation, Inclusion and Impact' – which mostly focused on retaining talent in Johor – Johor Corp's chief talent officer Najmie Noordin acknowledged that it will be an uphill task to bring Malaysians working across the border back home.
He noted that it would be difficult to convince Johoreans earning the equivalent of RM15,000 in Singapore to return for just RM5,000.
Moderator Brian Fernandez, CEO of BizTech Asia, pointed out that many of these Johoreans – 'the cream of the crop' – work in the Republic purely for the higher pay.
However, he added, many would also be willing to stay if salaries were even half of those in the city-state, especially given the daily grind of commuting.
In any case, Najmie noted that one plan is to develop more high-quality local talent and encourage them to stay, as well as attract workers from other parts of Malaysia, such as Melaka.
Responding to the discussion, Fadzli Abdul Wahit, head of digital transformation at Malaysia Digital Economy Corporation, said that efforts to retain talent must also focus on understanding industry demand.
Rather than compete directly with advanced economies, Malaysia should identify niche opportunities, such as supplying digital assets to mature gaming and animation markets such as Japan and South Korea, where such content is in short supply, he added.
Even so, panellists discussing the JS-SEZ maintained that Johor's cost and location advantages make it a compelling base for companies looking to scale up.
Idzham noted that the cost of doing business in Johor is nearly 60 per cent lower than in Singapore, and about 30 per cent lower than in Kuala Lumpur – a key advantage for companies looking to expand across the border to grow their businesses.
As for what Singapore brings to the table, Noorazam highlighted its global networks and financial strength. He added that Johor's vast land availability, affordability and talent pool make it a natural partner.
In response to Takahashi on how the JS-SEZ would shape Johor's future as an innovation hub, Idzham said that the master plan for Medini is focused on business tourism, research and development (R&D), and environmental, social and governance-led urban development.
The plan includes a new convention city near Legoland, a tech zone for R&D, and a net-zero carbon business district, with support from universities, the government and industry players.
'We should look at both Johor and Singapore as one growth area,' noted Noorazam. 'The JS-SEZ… can become the gateway to Asean, a market of 700 million people.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
15 hours ago
- Straits Times
Malaysians working in Singapore contributing to Johor Bahru's parking problem
Malaysians working in Singapore add to JB's parking woes, but little relief is at hand JOHOR BAHRU – The sky is still dark when sisters Madam Wong Oi Fah, 79, and Madam Wong Oi Ling, 68, arrive at 4.30am ready to begin brewing concoctions for their Chinese herbal drinks shop in downtown Johor Bahru, which opens from 9am to midnight. Despite the early hour, it was 'very hard to find parking' for their compact Perodua Myvi near the Jalan Pasar shop lot . The aggravating parking situation in the state capital's city centre has gotten worse of late, exacerbated by Malaysians working in Singapore who hog public parking bays in the area before heading across the Causeway by bus. As it is, residents, business owners and visitors in the area have to compete for limited parking spaces. The problem is compounded by the daily stream of workers heading to the Republic, who leave their parked vehicles from day through night in the southern state's various towns. 'It's been like this for many years,' said the younger Madam Wong at their century-old Kok Yow Yong Drinks Shop when the The Straits Times visited recently, noting that many of the public parking lots are taken up by the time she gets to the shop. 'I pity the businesses here... the lots are always full,' she said, adding that businesses like hers – alongside kopi tiams , beauty salons, old-style jewellery stores and sundry shops – have been struggling to attract customers who cannot find a spot to park in the the bustling downtown area. And those who chance it by parking on the roadside have had summonses issued and their cars towed by Johor Bahru City Council (MBJB) enforcement officers, who regularly conduct checks. But little relief is at hand for the time being, as local authorities continue mulling solutions to the endemic parking woes, involving time limits for public parking bays and providing more parking spaces downtown. State housing and local government committee chairman Mohd Jafni Md Shukor told ST that there are plans to increase parking spaces in affected areas, implement time limits for public parking bays, and work with bus operators to find more suitable locations for passenger pickups to reduce congestion build-up. Bus drivers are often blamed for clogging roads and exacerbating parking issues. 'We are told to wait only 10 to 15 minutes at pick-up points (so as to not block public roads),' said Mr Rajkumar , 50, a workers' bus driver. Mr Kumares Varan, 29, from Kulai, who parks his car and takes a chartered bus from Skudai town on weekdays to a factory in Singapore , said: 'There is no public transport to get here (to Skudai) and Grab isn't cheap.' 'A task force has been set up to study the issue involving the two city councils (in state capital Johor Bahru and state administrative capital Iskandar Puteri) ... but we need to study this carefully,' Datuk Jafni said, noting the rise in complaints from residents and business owners about the matter. 'We are closely monitoring this issue that has been raised by fellow state assemblypersons and the local business community... where motorists hog parking bays all day till late at night, causing disruption to local businesses here as customers cannot find a lot to park their vehicles,' he added. Over 350,000 travellers cross the Johor-Singapore border daily, making it one of the busiest land border crossings in the world. Workers would park their cars in transit spots at certain towns in Johor Bahru or in the city centre before hopping on a bus to Singapore, returning only in the late evening. Skudai, which is about 13km from Johor Bahru, is one such transit spot, along with Nusa Perintis – a suburb in Gelang Patah close to Singapore's Tuas land checkpoint – and downtown Johor Bahru near to the Sultan Abu Bakar Immigration, Customs, Quarantine and Security (CIQ) Complex. Surveys by ST at some of these hot spots saw the carparks fully occupied for much of the day through early evening as workers on different shifts took turns snapping up the lots. 'I see customers driving round and round to find a parking lot before going away,' said a woeful Mr Thinesh Naidu, who co-owns a tea shop in Jalan Trus in the city centre Even the privately managed carparks are full. According to an attendant in charge of the parking area opposite Galleria Kotaraya mall in downtown Johor Bahru, around 80 per cent of its 200 lots are occupied by Malaysians who work in Singapore, who pay RM15 for all-day parking. Malaysians who work in Singapore pay RM15 for all-day parking at a privately managed carpark near Galleria Kotaraya in downtown Johor Bahru. ST PHOTO: HARITH MUSTAFFA And while some businesses are willing to pay RM150 a month to the city council for a reserved lot for their customers, some drivers continue to park in those spots illegally and risk their cars being towed away. A 70-year-old car mechanic known only as Mr Hock has resorted to parking his two cars in front of his auto workshop early in the morning, in order to 'reserve' space to work on his customers' cars. He moves his cars elsewhere to free up the lots when customers come in to have their vehicles serviced or repaired. 'If I don't do this, I won't even have space to do my work (out front),' he said. Mr Hock has resorted to parking his two cars in front of his auto workshop early in the morning, in order to 'reserve' space to work on his customers' cars. ST PHOTO: HARITH MUSTAFFA The southern state's public transport primarily consists of buses, supplemented by taxis and ride-hailing services. The local and intercity bus services connect some parts of Johor Bahru city and the outlying towns. Malaysia's car ownership level ranks among the highest in Asia. In 2023, Transport Minister Anthony Loke said the country had 36.3 million registered vehicles, surpassing its population of 32.4 million people. Statistics from the International Organization of Motor Vehicle Manufacturers in 2024 showed Malaysia had 535 cars per 1,000 people from 2015 to 2020, ranking it second in Asia behind Japan. For most drivers, paying for parking is not an issue. Public parking in the city costs from RM0.40 for 30 minutes, with full-day passes at RM6, while private bays can go up to RM20 per day – which isn't a lot for those earning in Singapore dollars. 'We aren't in the wrong because we pay for parking,' said Aswad Ahmad Anwar, 35, a Skudai resident working as a production assistant in a factory in Woodlands, who earns the Singapore-dollar equivalent of RM7,000 a month. Experts attribute the traffic congestion and parking issues to poor urban planning, overreliance on private vehicles, low parking fees, and a lack of efficient last-mile connectivity between residential areas and cross-border bus transit points. The prevailing reliance on cars and affordable parking make this a difficult issue with no easy or quick solutions, they say. A workers' bus used to ferry passengers from Johor Bahru to Singapore waiting for passengers in Skudai on June 11. ST PHOTO: HARITH MUSTAFFA Mr Wan Agyl Wan Hassan, founder of My Mobility Vision, a transport think tank focused on developing sustainable and inclusive mobility solutions for Malaysia, said: 'RM6 per day for city-centre kerbside space is too low.' Associate Professor Walter Theseira, a transport economist from Singapore University of Social Sciences, favours time-limited 'red lots' for parking spaces to reduce day-long hogging and better public transit infrastructure for commuters to get around without relying heavily on their cars. 'Many housing areas in JB don't have good public transit access and when new developments are built, often the expectation is most residents will drive or use private transport,' he told ST. More parking facilities are in the pipeline, such as a mixed-use dev elopment that will be completed in 2033. The RM2.6 billion project to be built near Johor's Rapid Transit System (RTS) station in Bukit Chagar linking to Singapore's Woodlands North MRT station includes a multi-storey park-and-ride facility that can accommodate 1,550 cars and 1,015 motorcycles. Malaysia's southern state is poised to be the country's economic engine with the Johor-Singapore Special Economic Zone (JS-SEZ), a bilateral initiative meant to boost cross-border trade and mobility between Singapore and Johor. In December 2024, Johor's Menteri Besar announced a joint committee between the state government and Transport Ministry to tackle dozens of congestion hotspots in JB, reported local media outlet Bernama. A light rail transit (LRT) system – or what Malaysia calls the Elevated Automated Rapid Transit (E-ART) system – is also being considered to connect nearby townships to the upcoming Johor Bahru–Singapore RTS Link, the cross-border shuttle train service due to be completed by 2027. For now, Johoreans are resigned to the situation but hope things will improve. As Johor Bahru Business and Hawker Association president Roland Lim told ST: 'This issue has persisted for years and we are numb to it.' Harith Mustaffa is a journalist covering Malaysia for The Straits Times, with a focus on Johor. Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
21 hours ago
- Straits Times
Malaysians fret over hotpot of bad economic news, as govt set to expand sales and services tax
Malaysians fret over hotpot of bad economic news, as govt set to expand sales and services tax SUBANG, Selangor - Avocados from Australia, salmon from Norway, king crabs from Alaska, and mangoes from Thailand have become hot potatoes in Malaysian politics. Prime Minister Anwar Ibrahim is expanding the list of imported foods that will be taxed from July 1 in an effort to boost government coffers, but is facing howls of protest from Malaysians concerned that the move would feed inflation and curb sales. ' Some 70 per cent of our stock is imported, with strawberries and apples from Korea, for example,' Jennifer Choo, 20, who was manning the cashier counter at Soon Seng Ever Fresh Fruits owned by her parents. 'Customers expect prices to go up by RM1 to RM2 (S$0.30 to S$0.60) per fruit,' she told The Straits Times on June 15. The shop in Selangor state's Subang township currently sells 250g of strawberries from the US for RM19.80, while five South Korean apples go for RM12. The government announced on June 9 that it will expand the list of imported fruits and 'premium seafood' that will be taxed by 5 per cent. These are now tax-free. In March 2024, Malaysia's sales and services tax (SST) was revised from 6 per cent to 8 per cent. The widening of the SST in July 2025 will also include a wide range of businesses including the leasing or rental of premises, construction, financial services, private healthcare and beauty services. The expansion of the SST piles a hotpot of bad news on the economic front: The government plans to 'slightly increase' electricity tariffs for the industial sector on July 1. In addition, it is going ahead with reducing subsidies for the widely used RON 95 petrol by the end of 2025. The government is also mulling whether to stop commercial eateries from using subsidised cooking gas, a scheme that would jack up the cost of eating out. All these are part of a broader move by Datuk Seri Anwar, who is also the Finance Minister, to wean the public off government subsidies and boost public revenues. Essential items such as rice, meat, flour, cooking oil, local fruits and vegetables are exempted from taxes. Meanwhile, national petroleum company Petronas is shedding some 10 per cent of its workforce, or 5,000 people, as profits are sharply down due to weak oil and gas prices globally. Petronas is expected to struggle to maintain its annual RM32 billion dividend payments to the government, comprising some 10 per cent of Malaysia's annual budget outlay. And hovering over the whole economy is the uncertainty over how badly the Malaysian economy would be hit by US tariffs. The Malaysian opposition used harsh words to describe the government's SST plan. Perikatan Nasional chief Muhyiddin Yassin slammed the government for 'sucking the blood' of the people by taxing commonly eaten fruits. Parti Sosialis Malaysia warned that the expaned SST scheme could lead to the downfall of Mr Anwar's government at the next general election. When presenting the 2025 Budget in October last year, the government said that the proposed SST expansion could generate an additional RM5 billion to bring the consumption tax collection to RM51.7 billion. Defending his government's plan, Mr Anwar said on June 15: 'Recently, it was in (the news) that on imported goods, bananas would be taxed. People got mad. People toil to grow (bananas) in Lumut, then we have to import bananas?' He added, at an event in Lumut, Perak: 'If you have a high income and want to eat avocados, go ahead. But pay a bit more, (because) we are taxing avocados.' Kuala Lumpur Fruits Wholesalers Association President Ms NM Chin, 61, said the nutritious imported fruits are essential for maintaining a healthy diet and should not be taxed. 'We want to appeal to the Finance Ministry next week to halt the SST imposition. Our domestic fruit production is insufficient to meet market demand. Some 70 per cent of fruits sold here is imported,' the veteran importer told ST at the Kuala Lumpur Wholesale Market in Selayang, on June 17. She was concerned that if the Customs Department levies SST at the port, wholesalers would have to absorb losses should the fruits perish or become unappeal ing before they are put up for sale – in which case, sometimes 40 percent of the fruits in a 40-foot container could end up spoiled. Malaysia's fruit trade deficit reached RM2.6 billion in 2023 due to high demand for temperate fruits such as apples, oranges and grapes, which are not suitable for cultivation in tropical weather. The Finance Ministry's secretary-general Johan Mahmood Merican looked at the issue from another angle. The higher prices for imported fruits would boost demand for local fruits, thus supporting local farmers while reducing imports, he was quoted as saying by online news site Free Malaysia Today on June 16. Ms Ng Sue Lynn, head of indirect tax at KPMG in Malaysia, said that consultations had been conducted with the relevant stakeholders, with a focus on taxing discretionary spending. 'The purpose of the SST expansion is to make the tax structure more progressive by broadening the tax base, while ensuring that the targeted approach does not burden the ordinary Malaysian,' Ms Ng told ST. A self-proclaimed heavy fruit consumer, Mr Hanapiee Zamzami, said the expanded SST's implementation will reduce his purchasing power and force him to opt for local varieties. 'I will switch to Cameron Highlands strawberries at RM20 per 250gms rather than Japanese strawberries, which fetch up to RM80. Actually, even local fruits like watermelon cost RM4 now – double compared to two years ago,' the 32-year-old consultant told ST. Asking the government to consider the deferment of SST expansion, Associated Chinese Chambers of Commerce and Industry of Malaysia President Ng Yih Pyng said Malaysian businesses are facing higher operation cost s and domestic economic uncertainty amid 'US tariff uncertainty and potential global economic slowdown'. For JM Beauty salon owner Low Kit Min in Kuala Lumpur, the 8 per cent SST from July could affect her business badly. She plans to adapt to the new environment by offering attractive promotions to offset the additional cost for customers. 'Normally, our clients would sign up for a package with us, for example, getting six services for RM1,200. We will ask customers to bear the extra RM96 (of taxes) , but a free manicure service will be given,' the 29-year old told ST. Lu Wei Hoong is Malaysia correspondent at The Straits Times, specialising in transport and politics. More on this Topic After Trump tariffs, Malaysia to ease price hikes in bid to fuel economy Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
2 days ago
- Business Times
Malaysia hopes to draw back talent to power JS-SEZ
[SINGAPORE] Malaysia hopes to draw back some of the hundreds of thousands of Malaysians who cross the causeways daily, by tapping them to power the Johor-Singapore Special Economic Zone (JS-SEZ), said panellists on Wednesday (Jun 18). However, Idzham Mohd Hashim, president and chief executive officer of Iskandar Investment (IIB), stressed that this was not about competing with Singapore, but about creating a 'symbiotic relationship' that benefits both countries. He was speaking on a panel titled 'Johor Focus: Building the Future with JS-SEZ', alongside Mohd Noorazam Osman, CEO of the Iskandar Regional Development Authority (IRDA) and former mayor of Johor Bahru. The discussion was part of the Nikkei Forum held in Medini, Johor, and moderated by the Japanese news organisation's senior producer Kaori Takahashi. IIB is leading the infrastructure development in the JS-SEZ, while IRDA oversees planning and coordination. The agreement to establish the SEZ was signed by Singapore and Malaysia in January with the aim of having both countries work together to attract new investment projects from around the world. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The SEZ covers an area of more than 3,500 sq km, roughly four times the size of Singapore. Idzham said that while the zone's infrastructure – including roads, power supply, and fibre optic networks – is already in place, what is still missing is the 'software'. 'Most of the businesses who come here… they ask: 'Do you have (the) talents?'' said Idzham. 'We do have (the) talents, because 300,000 of them go to Singapore every day.' Both Idzham and Noorazam pointed to plus points in Johor that could woo back these residents, such as more industry-relevant training, increased job opportunities through business expansion, and the lower cost of living in the state. For instance, Noorazam said the Johor Talent Development Council is working with academic and vocational institutions, as well as industry players, to ensure that training matches demand. While he did not go into detail, he added there are also plans to offer tax incentives and to work towards a minimum starting salary of RM4,000 (S$1,210) for graduates in Johor. He added that investors should see the lower wage expectations – at around 50 to 75 per cent of Singapore's salary levels – as part of the SEZ's broader cost advantage. In a separate panel discussion at the forum titled 'Building Digital Nations: Innovation, Inclusion and Impact' – which mostly focused on retaining talent in Johor – Johor Corp's chief talent officer Najmie Noordin acknowledged that it will be an uphill task to bring Malaysians working across the border back home. He noted that it would be difficult to convince Johoreans earning the equivalent of RM15,000 in Singapore to return for just RM5,000. Moderator Brian Fernandez, CEO of BizTech Asia, pointed out that many of these Johoreans – 'the cream of the crop' – work in the Republic purely for the higher pay. However, he added, many would also be willing to stay if salaries were even half of those in the city-state, especially given the daily grind of commuting. In any case, Najmie noted that one plan is to develop more high-quality local talent and encourage them to stay, as well as attract workers from other parts of Malaysia, such as Melaka. Responding to the discussion, Fadzli Abdul Wahit, head of digital transformation at Malaysia Digital Economy Corporation, said that efforts to retain talent must also focus on understanding industry demand. Rather than compete directly with advanced economies, Malaysia should identify niche opportunities, such as supplying digital assets to mature gaming and animation markets such as Japan and South Korea, where such content is in short supply, he added. Even so, panellists discussing the JS-SEZ maintained that Johor's cost and location advantages make it a compelling base for companies looking to scale up. Idzham noted that the cost of doing business in Johor is nearly 60 per cent lower than in Singapore, and about 30 per cent lower than in Kuala Lumpur – a key advantage for companies looking to expand across the border to grow their businesses. As for what Singapore brings to the table, Noorazam highlighted its global networks and financial strength. He added that Johor's vast land availability, affordability and talent pool make it a natural partner. In response to Takahashi on how the JS-SEZ would shape Johor's future as an innovation hub, Idzham said that the master plan for Medini is focused on business tourism, research and development (R&D), and environmental, social and governance-led urban development. The plan includes a new convention city near Legoland, a tech zone for R&D, and a net-zero carbon business district, with support from universities, the government and industry players. 'We should look at both Johor and Singapore as one growth area,' noted Noorazam. 'The JS-SEZ… can become the gateway to Asean, a market of 700 million people.'
