We welcome the signing of the Johor-Singapore Special Economic Zone (JS-SEZ) agreement by Malaysia and Singapore today.

Singapore, 7 January 2025 – We welcome the signing of the Johor-Singapore Special Economic Zone (JS-SEZ) agreement by Malaysia and Singapore today. With this, we expect interest in the (JS-SEZ) to grow further. Even before this, we had already received many enquiries from businesses across the region to set up shop in Johor, given our strong track record. In 2024 alone, we 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. We anticipate this number to increase by 20% in 2025. We have set up dedicated teams on both sides of the Causeway, with 25 experienced bankers in total, to support this growing interest. These bankers will provide advisory services to help the businesses start operations, as well as connect them with suitable local business partners.

Johor’s geographical advantage of ports, its proximity and connectivity with Singapore and other parts of Malaysia, well-managed costs of living and a history of prudent economic policy decisions will be factors in its favour as the JS-SEZ develops. Economically, Johor has already registered slightly higher economic and employment growth in past years than the national average. The scheduled completion and launch of the Johor Bahru-Singapore Rapid Transit System (RTS) Link project on 1 January 2027 will further enhance the attractiveness of the JS-SEZ. Singapore stands to benefit potentially from the increased business and economic cooperation with Malaysia, as well as the comparatively more economical cost structures in Johor.