Johor-Singapore SEZ to boost state GDP share above 12% by 2030
In a note, the investment bank said JS-SEZ could contribute RM117.1 billion to the country's GDP by 2030, representing an average annual rise of RM19.5 billion — equivalent to 0.6–1.0 per cent of GDP per year from 2025 to 2030.
Achieving this would require a compound annual growth rate (CAGR) of around 8.4 per cent per annum (p.a.), more than double its 3.8 p.a. growth during 2016–2023, it noted.
'This estimate assumes steady growth and a national GDP growth rate of 6.0 per cent.
'Key growth drivers include rising domestic and foreign investment in sectors like logistics, healthcare, tourism, and the digital economy, as well as enhanced labour mobility, improved cross-border trade facilitation, and major infrastructure upgrades,' it said.
Johor's investment momentum has surged in the first quarter of 2025 (1Q 2025), securing a total of RM30.1 billion in approved investments, driven by JS-SEZ initiatives and pro-business reforms.
Singapore was the largest investor in 1Q 2025 with 65 projects worth RM28.3 billion in approved FDI, beating other contenders such as the United States (RM9.9 billion) and China (RM7.9 billion).
These investments are expected to generate 33,000 new jobs and put Johor on track to surpass its 2024 approved investments record of RM48.5 billion, and Johor Menteri Besar Datuk Onn Hafiz Ghazi is now targeting RM60 billion-RM100 billion in approved investments for 2025.
According to CIMB Investment, investors' focus will be on key zones like Forest City and Sedenak, led by data centres, electrical and electronics, electric vehicles, and the logistics sectors.
'The JS-SEZ blueprint clearly outlines sector priorities to designated zones, ensuring focused development and ecosystem clustering. Delivering on these projects will establish Johor as a diversified and globally connected economic engine by 2030,' it said.
CIMB Investment added that the JS-SEZ is also expected to strengthen the Johor-Singapore economic corridor, enabling a twin-city model similar to Shenzhen-Hong Kong.
'Johor offers scale, land, and labour, while Singapore brings capital, finance, and global networks. Their integration creates a compelling, cost-efficient destination for global investors, with seamless operations across both jurisdictions,' it said.
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