Singapore Firms Commit $4.23 Billion Investments in JS-SEZ

Singapore-based companies have committed investments worth more than $4.23 billion in Johor ever since the Johor-Singapore Special Economic Zone (JS-SEZ) MOU was signed in January 2024 and to further drive SEZ development, Singapore and Malaysia will jointly attract and anchor flagship projects in key sectors like advanced manufacturing, logistics, green industries and digital services.

In a presentation on the efforts being made to develop the JS-SEZ at the Second JS-SEZ Joint Investment Forum on Tuesday, Singapore’s Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong, in his key-note address, said that the success of these flagship projects will demonstrate the potential of the JS-SEZ to other investors.

It will showcase how firms can co-locate, grow their business capacity, and expand seamlessly across both sides of the Causeway to tap into regional markets, Gan told the over 900 delegates attending the event, which was also attended by Malaysia’s Minister of Investment, Trade and Industry, Zafrul Abdul Aziz and Chief Minister of Johor Onn Hafiz Ghazi.

The Forum was jointly organised by Singapore and Malaysia to explore how the JS-SEZ could provide business opportunities, unlock new markets, and drive strategic investments.

According to Gan, attracting multinational companies (MNCs) to invest in the JS-SEZ will also create business opportunities for the large base of small- and medium-enterprises (SMEs) in both countries.

“When multinationals invest here, they create opportunities for local suppliers, logistics firms and service providers to plug into regional and global value chains and this will trickle down to generate broader economic benefits and help both national economies build stronger, more resilient industrial ecosystems,” he pointed out.

Singapore Firms in SEZ

Singapore-headquartered agriculture-technology company Archisen, which develops and operates smart indoor vertical farms, has already signed an MOU with Southern Catalyst to develop a 200-acre modern agricultural hub in Sedenak, in Kuldai District in Johor.

Southern Catalyst (SOCAT) is a government-linked entity, wholly owned by Malaysia’s Ministry of Finance Incorporated. SOCAT operates as a value creator and national enabler, driving catalytic projects that align with Malaysia’s national development priorities and the vision of the JS-SEZ.

Even global logistics firm Kuehne + Nagel, which has developed an integrated transport and logistics network across Singapore and Johor, ResMed, a medical technology firm based in the US and Australia, also operates on both sides of the SEZ.

“These examples show what the JS-SEZ makes possible for companies to be able to operate across both sides of the Causeway as one integrated ecosystem to grow their operations and strengthen their supply chains,” Gan averred.

According to media reports, Singapore and Malaysia will continue to streamline the regulatory process to improve the ease of cross-border flows of goods and professionals between Singapore and Johor. This will be facilitated by the JS-SEZ Joint Project Office in Singapore, comprising MTI, EDB, and EnterpriseSG, alongside the Invest Malaysia Facilitation Centre – Johor (IMFC-J).

Since the signing of the JS-SEZ MOU in January 2024, Singapore’s JS-SEZ Joint Project Office and its Malaysian counterpart have received over 1,000 enquiries from businesses across sectors like manufacturing, logistics, and data centres, who are keen to tap into the possibilities of the SEZ.

Lee Chuan Teck, executive chairman of EnterpriseSG, said that at the economic level, the SEZ builds on their complementary strengths: Johor’s abundance in talent and resources; Singapore’s capital and global connectivity to present a compelling destination for global investments.