SMEs urged to grab chance to grow
MICRO businesses as well as small and medium enterprises (SME) are urged to seize opportunities that come with the development of Johor-Singapore Special Economic Zone (JS-SEZ).
State housing and local government committee chairman Datuk Mohd Jafni Md Shukor said JS-SEZ had the potential to contribute an additional US$28bil (about RM120bil) to Malaysia's gross domestic product (GDP) by 2030.
He said the initiative spanning 11 key economic sectors was expected to see the start of about 50 projects in the first five years, with the number of projects going up to 100 in 10 years.
'This shows that JS-SEZ has many opportunities for SME and micro businesses to grab,' he said.
The 11 key economic sectors under the JS-SEZ are manufacturing, logistics, food security, business services, tourism, energy, digital economy, green economy, financial services, education and health.
During an interview, Mohd Jafni added that the state government, through its 16 local councils, had also been clamping down on the abuse of business licences to ensure that locals benefit from the economic activities.
'We have been running joint operations regularly to go after those abusing business licences, such as illegally renting them to foreigners,' he said.
'We want to ensure that the right people benefit from the state's development and this is the Johor government's priority.'
Mohd Jafni highlighted that SMEs contributed 37% of the country's GDP and generated about 48% of the nation's workforce including in sectors such as services, manufacturing, agriculture and commerce.
'The state government recently distributed 6,000 units of tents worth RM3mil to petty traders and SME for the year.'
He said the state government had also been collaborating with Bank Rakyat to assist businesses through the BR Johor Niaga financial scheme.
As of March 31, 644 entrepreneurs had been accepted for the scheme, which had disbursed more than RM43.2mil since it was launched on March 22, 2023.
The scheme allows eligible applicants to receive interest-free funding of between RM5,000 and RM50,000.
The interest is fully borne by the state government.
Johor Baru Small Business Association president Tey Tian Hwang urged eligible entrepreneurs to apply for the zero-interest scheme to upgrade and improve their businesses.
'SMEs, including hawkers and mobile traderswho are looking forward to the JS-SEZ implementation, should make plans to upgrade their businesses and uplift their services and image.
'With more developments, there will naturally be a higher demand for goods and services, which SMEs will stand to benefit from,' he said.
Tey added that next year's Visit Johor Year promotion and completion of the Rapid Transit System Link, connecting Johor and Singapore by rail, would further boost the economy.
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