Johor-Singapore SEZ snares lion's share of approved investments: Mida
[SINGAPORE] Some four-fifths of the over 700 projects approved by the Malaysian Investment Development Authority (Mida) in Johor last year were located in the Johor-Singapore Special Economic Zone (JS-SEZ), underscoring its attractiveness, the agency's chief executive told The Business Times.
Of these 560 approved investment schemes, more than 50 are in high-value and high-growth sectors, such as the medical and semiconductor industries, noted Sikh Shamsul Ibrahim Sikh Abdul Majid.
'This shows the attraction of the special economic zone to host high-value, high-growth sectors,' he said. 'What we want is to move up the value chain within existing industry clusters and create new clusters for the whole zone.'
Facilitation is as important as the approvals, added Shamsul, pointing out that the implementation rate of projects within the zone in 2023 was more than 80 per cent.
He made these remarks at a JS-SEZ joint business and investment forum that was held on Monday (Apr 21) in Johor Bahru. This is the first forum of its kind since the agreement to set up this cross-border special economic zone between neighbouring Singapore and Malaysia, was inked in January.
Co-organised by Singapore's Ministry of Trade and Industry and Malaysia's Ministry of Investment, Trade and Industry, the forum saw some 1,000 business leaders in attendance.
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The Mida chief executive was speaking at the first of three panel discussions held titled JS-SEZ: Asean's next investment powerhouse.
Moderated by Maybank Investment Bank Berhad's group chief economist Suhaimi Ilias, the session also featured Singapore Economic Development Board (EDB) managing director Jermaine Loy; Federation of Malaysian Manufacturers vice-president Jacob Lee; and Singapore Business Federation (SBF) chief executive Kok Ping Soon.
EDB's Loy, who officially took over as managing director on Mar 1, described the zone as a 'win-win-win-win' when asked to deliver an elevator pitch to businesses and investors.
'It's a win for Malaysia in terms of new economic growth here in Johor; it's a win for Singapore, enhancing our economic competitiveness; it's a win for businesses looking at the growth opportunities, seamless and efficient cross-border operations and integrated regional strategy; it's also a win for South-east Asia in terms of fostering economic integration and cooperation.'
Wooing talent
On the topic of talent, SBF's Kok noted that, with Johor also running short on labour, the question now boils down not just to availability of talent, but also to their skill acquisition.
The crux lies in how Johor can be transformed into a 'talent magnet' attracting workers from other parts of Malaysia, said the federation's chief executive.
He added: 'But, no matter what… you will still need to bring in foreign talent, and the question is whether the JS-SEZ can also be a home for foreigners.'
Infrastructure development
Talent aside, enhanced infrastructure is another key to the zone's success, with panellists noting strong investor interest in the Johor Bahru-Singapore Rapid Transit System Link that is targeted to be operational by end-2026.
Mida's Shamsul highlighted the importance of providing renewable energy supply, noting that roughly 100 companies are currently eyeing opportunities in the space and that Malaysia is looking at a green industrial park initiative that could provide renewable energy for companies.
'We're talking about high-growth, high-value sectors, but if you're not able to provide renewable energy, it will be a bottleneck for the JS-SEZ (when it comes to enticing) all these companies looking at achieving net-zero ambitions.'
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