OCBC Teams to Support SMEs in Johor-Singapore SEZ

Singapore’s Oversea-Chinese Banking Corporation Limited (OCBC) has tasked two dedicated teams comprising 25 bankers in Singapore and Malaysia to support SME customers across Singapore, Malaysia, Indonesia, Hong Kong and Mainland China to capture opportunities arising from the planned Johor-Singapore Special Economic Zone (JS-SEZ).

The JS-SEZ is poised to be a strong catalyst for Johor’s economic prospects. The announcement of the JS-SEZ alone has buoyed investments into the construction and property sectors, aided by progress made on physical infrastructure such as the Rapid Transit System. Johor’s geographical advantage of ports, proximity to Singapore’s well established manufacturing base, well-managed costs of living and a history of prudent economic policy decisions will hold it in good stead ahead as it embarks on the development of the JS-SEZ.

These two teams with an average of over 10 years of experience will be supporting SMEs across the region with their business aspirations. These bankers will provide advisory services to help the SMEs start and grow their businesses, as well as connect them with suitable partners in the special economic zone, OCBC said in a statement.

On 11 December 2024, OCBC co-organised with the Malaysian Investment Development Authority (MIDA) familiarisation visits to Forest City and the integrated industrial and commercial hub of EcoWorld Business Park in Johor Bahru, for 28 Singapore and Chinese mid-sized enterprises in the manufacturing sector.

A roundtable discussion was also organised, where MIDA shared about the investment opportunities and business landscape in Malaysia. Wiwynn Technology Service Malaysia and Huirui Polymers Sdn Bhd also spoke about their experiences doing business in Malaysia.

The OCBC Group has a deep history in Johor as OCBC Malaysia established its first branch in the state more than 100 years ago in 1917 and now operates eight branches in Johor, including in Johor Bahru, Skudai, Kulaijaya, and Taman Molek, which are all situated within the JS-SEZ.

Its comprehensive network across the country spans 38 branches, seven of which are Islamic branches operated under its Islamic subsidiary OCBC Al-Amin Bank Berhad (OCBC Al-Amin).

OCBC has a proven track record of helping SMEs to establish operations in Malaysia. The Bank expects to have supported about 260 new mid-sized enterprises from the region, mainly from the services, construction, manufacturing and wholesale and retail trade sectors, to set up their businesses in Malaysia in 2024 alone. Given the growing interest in the JS-SEZ, OCBC expects this number to increase by 20% in 2025.

Spate of Enquiries                            

Tan Teck Long, Head of Global Wholesale Banking, OCBC, said that though the details of JS-SEZ have not been shared, they have already received many enquiries from SMEs across the region to set up shop there.

“By setting up dedicated teams on both sides of the Causeway, we are well placed to support this growing interest of regional SMEs in entering the Johor and wider Malaysia market. Recent geopolitical developments, the continued rise of ASEAN for supply chain diversity and resilience, and the significant growth of foreign direct investments into Malaysia these two years will further amplify the potential of the JS-SEZ,” Long added.