Latest news with #JS-SEZPartnersDialogue
New Straits Times
20-05-2025
- Business
- New Straits Times
Supercharging special economic zone
KUALA LUMPUR: Malaysia has partnered with six local and global financial institutions to drive investments and financing support for its special economic zone in Johor. The banks are Malayan Banking Bhd (Maybank), CIMB Group Holdings Bhd, Bank of America, HSBC, Sumitomo Mitsui Banking Corp and CGS International Securities. They inked Letters of Intent (LoIs) with the Economy Ministry on Monday, outlining interests in joint efforts to supercharge the Johor-Singapore Special Economic Zone (JS-SEZ). Malaysia and Singapore established JS-SEZ in January, looking to boost investment and ease the movement of goods and people between the neighbours. Malaysia aims to get 50 high-value projects off the ground and create 20,000 high skilled jobs at the zone within the next five years. Economy Minister Datuk Seri Rafizi Ramli said talks are being held with a European-based bank as the country looks to rope in more partners to promote the cross-border initiative. Rafizi said these partnerships, sealed during the JS-SEZ Partners Dialogue here, underscore the growing investor confidence in the SEZ's potential to drive economic transformation in southern Johor and beyond. Maybank became the first bank to come up with potential investments from its clients. The bank supports up to RM2.35 billion in potential investments through LoIs submitted by four Singapore-based firms. The four are Alpine Renewables, Edible Oils Pte Ltd, Centurion Corporation Ltd and Thomson Medical Group Ltd (TMG). "These LOIs signal confidence in the JS-SEZ's strategic value," Maybank president and group chief executive officer Datuk Khairussaleh Ramli said in a statement. "Maybank takes a long-term view of the zone's success and actively promotes broad-based participation from MSMEs to mid- to large-cap and multinational corporations in diverse sectors. "We believe that inclusivity is fundamental to building a vibrant, integrated and resilient ecosystem within the JS-SEZ." Alpine Renewables, through its Malaysian unit Alpine Assets Management Sdn Bhd, plans to invest about RM350 million over the next three years in a renewable energy feedstock pretreatment and biodiesel refinery facility at Tanjong Langsat Industrial Port. The facility is expected to process up to 600,000 tonnes of renewable feedstock oil annually, strengthening the port's role as a regional hub for marine biofuels. Alpine currently supplies biofuel feedstocks to markets in Europe, China, South Korea and the United States. Centurion Corporation, an SGX-listed provider of worker and student accommodation, intends to invest between RM300 million and RM500 million over the next five years to expand its bed capacity in the JS-SEZ. The company's focus is on developing Centralised Living Quarters certified by the Jabatan Tenaga Kerja Semenanjung Malaysia (and compliant with the Employees' Minimum Standards of Housing, Accommodations and Amenities Act 1990. TMG, also listed on the SGX, plans to invest up to RM1.5 billion over the next decade to build Thomson Hospital Iskandariah on a 1.5-hectare site in Stulang, Iskandar Malaysia. The hospital is set to become a healthcare anchor within the JS-SEZ, operating under a public-private partnership model. The project is expected to generate around 1,500 jobs in clinical services, research, specialist care, and healthcare technology. Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the JS-SEZ will be the catalyst for Malaysia's growth as it enhances bilateral trade and investment relation with Singapore and across the globe. "Already we have seen the construction of data centre which has contributed significantly to construction sector. "The sector has been growing at double digit for multiple quarters in a row especially data centre construction in Johor. The availability of land resources, energy, water and telecommunications to name a few would facilitate the growth node in the state," he told Business Times. Afzanizam said key factors that need to be addressed are the bureaucracy among the relevant government agencies at state and federal level in order to yield positive experience among the business and investing community. He also said the prevailing tariff shocks suggests a dire needs for intra-Asean trade and investment linkages. "JS-SEZ can be such catalysts. It can be cross-border template to integrate other SEZs in the Asean region and become the major hubs for various industries such as advanced manufacturing and electronics, logistics and warehousing, green energy, agri-food and halal industry as well as healthcare and education," he added.
New Straits Times
19-05-2025
- Business
- New Straits Times
JS-SEZ blueprint launch by year-end, to drive long-term growth: Rafizi
KUALA LUMPUR: The Johor-Singapore Special Economic Zone (JS-SEZ) Blueprint will be launched by year-end, offering a comprehensive roadmap outlining the zone's long-term development strategy, investment prospects, and policy direction, said Economy Minister Rafizi Ramli. "Think of it as a one-stop document for potential investors, policymakers, and the general public," Rafizi said during the JS-SEZ Partners Dialogue held in Kuala Lumpur today, themed "Advancing Facilitation". He revealed that foreign direct investment (FDI) in the first quarter of 2025 had already exceeded total FDI recorded in the first nine months of 2024, putting the JS-SEZ on course to surpass its RM60 million FDI target well ahead of schedule. Rafizi attributed the early momentum to close coordination between Johor state authorities and the Ministry of Investment, Trade and Industry (MITI), along with targeted efforts to attract high-value investments. He added that core structural and infrastructural developments within the zone are progressing steadily, laying a strong foundation for sustainable growth. "If we can achieve RM60 billion in FDI before the launch, it's a great sign for Johor in the coming years," he said. Rafizi described the JS-SEZ as a strategic economic catalyst, leveraging Johor's proximity to Singapore and its capacity for high-impact development. "We cannot sustain over 5 per cent economic growth without introducing a new growth engine. The JS-SEZ is designed to be that engine, benefiting not just Johor but the entire country," he said. He also highlighted several key benefits of the initiative, including increased tax revenue, job creation, and broad-based economic gains for both federal and state governments. He assured that neighbouring areas would also experience tangible benefits within two to three years, positioning the JS-SEZ as a major driver of sustainable national growth. On the issue of long-term viability, Rafizi stressed the importance of continuity and commitment. "Policy continuity should never depend solely on the sitting government but must be guided by a shared vision and a strategic commitment to national progress," he said.
New Straits Times
19-05-2025
- Business
- New Straits Times
Top banks back IRDA with multi-billion ringgit financing commitment for JS-SEZ
KUALA LUMPUR: In a major stride towards realising the Johor-Singapore Special Economic Zone (JS-SEZ), the Iskandar Regional Development Authority (IRDA) has formalised Letters of Intent (LOIs) with a powerhouse lineup of local and international banking institutions, signalling robust financial commitment to the cross-border initiative. The LOIs were signed with CIMB and Maybank, Malaysia's two largest banking groups; Sumitomo Mitsui Banking Corporation (SMBC), a leading Japanese financial giant; HSBC, a global banking heavyweight; CGS International, a key player in regional brokerage and investment services; and Bank of America, one of the world's largest financial institutions with deep expertise in investment banking and wealth management. These strategic partnerships, sealed during the JS-SEZ Partners Dialogue held this morning in Kuala Lumpur under the theme "Advancing Facilitation", underscore the growing investor confidence in the SEZ's potential to drive economic transformation in southern Johor and beyond. The event was officiated by Economy Minister Datuk Seri Rafizi Ramli and Johor Menteri Besar Datuk Onn Hafiz Ghazi, who both highlighted the importance of financial ecosystem readiness in ensuring the success of the SEZ initiative.
