Johor–Singapore SEZ Gears Up To Be ASEAN's ‘Mini Korea'
Deputy Minister of Investment, Trade and Industry Liew Chin Tong told the Malaysia–Singapore Chinese Chambers of Commerce Business Forum that the JS-SEZ must not become 'merely a relocation of low-end manufacturing from Singapore to Johor,' but should instead serve as a platform for deep industrial integration and advanced production.
The minister's remarks signal potential investment opportunities in strategic sectors such as semiconductors, renewable energy technologies, artificial intelligence and advanced materials; areas he said are now central to global competition.
Liew said Malaysia and Singapore both maintain over 20% of GDP from manufacturing, a rare trait among semi-advanced economies, giving them a unique industrial base to leverage. He proposed a joint ecosystem capable of producing regional champions akin to Samsung, Huawei or TSMC, which could reshape Southeast Asia's role in global supply chains.
'Together, we can serve as a mini Korea in the global supply chain,' he said, pointing to collaborative value-add potential that goes beyond their geographical size.
The business case also hinges on aligning financial markets and regulations with industrial policy. Liew highlighted the need for a 'robust financial ecosystem' that supports technology investments, signalling future roles for Malaysian capital markets and regulators like the Securities Commission to back industrial growth.
His call for more strategic integration comes as firms reassess supply chains amid global uncertainty, with Malaysia and Singapore potentially benefitting from nearshoring and diversification trends.
With formal JS-SEZ agreements signed earlier this year, industry players and investors will be watching closely for follow-up policies and incentives that translate political intent into bankable cross-border projects. Related
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Borneo Post
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New Straits Times
an hour ago
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The geopolitical landscape remains fluid. Any breakthrough in the Middle East or progress in the Ukraine conflict could unlock relief rallies, while renewed hostilities may keep risk appetite in check. Malaysia's equity markets are particularly sensitive to oil price volatility, where sharp spikes could strain inflation and subsidies, but also boost energy-linked counters. On the trade front, August's US-China tariff truce deadline looms large. If it leads to a lasting deal, Malaysia's export engine could rev up again, rewarding tech, logistics, and manufacturing sectors. If talks break down, investors should expect a return to defensive positioning. Staying nimble and sector-focused will be critical. Monetary policy remains the market's compass. With the Fed signalling possible Q4 rate cuts, global liquidity may begin to normalise. A weaker US dollar could strengthen the ringgit further and revive foreign flows. Bond yields may stabilise, benefitting capital-intensive and domestic consumption-driven sectors. Bank Negara Malaysia may join the easing cycle but is likely to remain data-dependent. Investors should track inflation trends and fiscal reform progress, especially the targeted subsidy rollout. Tactically, there is scope for selective sector rotation. Technology and construction may outperform if growth tailwinds return, while banks stand to benefit from loan growth recovery. Commodities and plantations remain tied to global cycles, but with El Niño risks and robust palm oil demand, upside remains plausible. Bottom line: H2 2025 is not without risk, but it offers a chance for calculated gains. Patience, diversification, and readiness to reposition swiftly will be key. Malaysia, underpinned by sound governance and regional relevance, remains a compelling story for long-term investors looking to turn uncertainty into strategic opportunity. The turbulence of early 2025 may well give way to calmer - or at least more predictable - seas, in which the Malaysian economy and the FBM KLCI can find firmer footing. Conclusion: Staying Strategic in a Shifting Landscape In light of continued volatility, Malaysian investors may consider the following actions: 1. Diversify across resilient sectors. Exposure to infrastructure, domestic services, and financials may help buffer external shocks. 2. Reassess export-heavy positions. Monitor global demand and currency strength, especially for manufacturing and E&E sectors. 3. Stay defensive where needed. Utilities and consumer staples offer stability when uncertainty prevails. 4. Use safe-haven assets selectively. Gold's sustained strength reinforces its role in hedging macro risk. 5. Monitor macro and policy shifts closely. Policy changes at home and abroad will shape sector leadership and capital flows. Ultimately, investing in uncertainty is not about avoiding risk, but managing it. In a world shaped by rapid change, staying informed, agile and disciplined will be the hallmark of successful strategies. Malaysia remains well-positioned, with strong governance, regional relevance, and compelling valuations to weather short-term turbulence and unlock long-term growth. *The writer is the head of dealing at Moomoo Malaysia.
