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Free Malaysia Today
20-06-2025
- Business
- Free Malaysia Today
Why Johor is now an investor safe haven
The Nikkei Forum Medini Johor 2025 brought industry experts to discuss the future of the Johor-Singapore Special Economic Zone (JS-SEZ). ISKANDAR PUTERI : The Johor-Singapore Special Economic Zone (JS-SEZ) has been touted as the next major engine of growth for Southeast Asia. Formally established in January through a bilateral agreement between Malaysia and Singapore, the zone aims to enhance cross-border economic connectivity. Over the next 10 years, it is set to support 100 projects worth RM100 billion and create an estimated 100,000 jobs across high-value sectors such as manufacturing, the digital economy, logistics, clean energy, and tourism. At the June 18-19 Nikkei Forum Medini Johor 2025, co-organised by Iskandar Investment Bhd (IIB), industry experts and panellists discussed how best to unlock the region's potential and ensure it stays on track. FMT highlights several key themes and their implications for Johor and beyond. Johor as a stable option in a fractured landscape With its strategic location and stable policy environment, Johor, together with its neighbour Singapore, is increasingly seen as a compelling and secure investment destination. IIB president and CEO Idzham Hashim said the JS-SEZ offers a secure entry point for global capital, especially amid rising geopolitical and economic headwinds. Citing Johor's consistent ranking in Malaysia's top three destinations for foreign direct investment, he said the region's relatively low operating costs further enhance its appeal. 'The cost of doing business in Johor is almost 60% cheaper than in Singapore and almost 30% cheaper than in Kuala Lumpur. 'We have the ability to help (Singaporean businesses) scale up, reduce their cost of doing business, and give them the space they need to grow,' he said. This positioning is supported by financial institutions facilitating inbound investment. One example is United Overseas Bank Ltd (UOB), which is helping investors enter the regional market. Chiok Sook Yin, who heads UOB's foreign direct investment advisory unit, said the bank offers full-spectrum support for businesses expanding into the region. 'Besides having strong network connectivity, we have financial supply chain management solutions that help investors expand local sourcing and support new suppliers that follow (prominent) companies into Malaysia. 'We're also helping lower the barrier to entry for investors and addressing their concerns before they enter the markets they've targeted,' she said. Deloitte Malaysia executive director Thean Szu Ping said the government is backing this push with robust fiscal incentives. High-tech industries, she said, qualify for a preferential tax rate of 5% for up to 15 years. Capital-intensive sectors, meanwhile, will receive an investment tax allowance. Policy continuity and clarity needed The resignation of former economy minister Rafizi Ramli, who had played a key role in shaping the JS-SEZ blueprint, has raised questions about the zone's future direction. Despite his assurances that existing initiatives would continue uninterrupted, industry leaders emphasised the need for unwavering policy commitment. UEM Group Bhd managing director Amran Hafiz Affifudin described continuity as the 'most important enabler' of business confidence. 'As a member of the business community, we like to see continuity in policy, especially as an infrastructure company. Our investments are long-term, so clarity and continuity of policy are very important. 'We are a business with heavy capital expenditure. Policy stability is critical,' he said. Johor investment, trade, consumer affairs and human resources committee chairman Lee Ting Han echoed this, noting that in today's unpredictable global climate, consistency attracts capital. 'In this era of uncertainty, investors and innovators seek environments where rules are transparent, decisions are predictable, and institutions are stable. Johor is ready to offer these,' he said. Growing Japanese interest in the region One of the most pronounced takeaways from the forum was the deepening interest of Japanese industry in Johor, reflected in the participation of companies like Mitsui Banking Corporation Malaysia, and AEON Co. In his closing remarks, Prime Minister Anwar Ibrahim revealed that Japanese prime minister Shigeru Ishiba had recently identified Johor as a region of strategic interest. Japanese ambassador to Malaysia Noriyuki Shikata pledged Tokyo's support for Johor's ambitions as a tech and infrastructure hub. 'Japan's liquefied natural gas cooling technology would offer an environmentally friendly and efficient cooling solution for Johor's data centres. 'By adopting this technology, the data centres in Johor could significantly improve energy efficiency while reducing their environmental impact as well as improving operational efficiency,' he said. He also offered Japan's AI-driven traffic control systems and digitally optimised public transport networks to help Johor overcome congestion challenges and become a model city for mobility solutions, not just for Malaysia, but for Asean and beyond. The momentum behind Japanese participation was further underscored by a memorandum of understanding signed between Invest Johor and Tokyo Stock Exchange-listed tech firm NEOJAPAN Inc to establish a Southeast Asian Centre of Excellence (SEA CoE) in Johor. The initiative aims to train 1,000 local talents and create 300 high-skilled jobs. Invest Johor CEO Natazha Hariss said the partnership is aimed at driving innovation and strengthening talent development across the JS-SEZ and will 'promote the JS-SEZ as a base for cutting-edge innovation and talent development'.
Independent Singapore
20-06-2025
- Business
- Independent Singapore
Malaysia's PM Anwar vows to 'make necessary adjustments' from SEZ foreign investors' feedback 'if absolutely necessary'
ISKANDAR PUTERI, MALAYSIA: Prime Minister Anwar Ibrahim vowed that Malaysia will make necessary adjustments, 'if absolutely necessary,' based on feedback from foreign investors on the development of the Johor-Singapore Special Economic Zone (JS-SEZ) to make Malaysia 'a very attractive destination for foreign investments.' Speaking at the two-day Nikkei Forum Medini, Johor 2025, PM Anwar pitched the JS-SEZ project, 'based on total trust' between Malaysia and Singapore, touting foreign investors to invest in the opportunity, as reported by Nikkei Asia. 'This is not an ordinary SEZ,' he said. 'Name me any other economic zone that involves two countries based on total trust and working together as a team.' The JS-SEZ deal, signed on Jan 6 during the 11th Malaysia-Singapore Leaders' Retreat in Putrajaya , spans 3,571 sq km, nearly five times the size of Singapore. Johor's Chief Minister, Onn Hafiz Ghazi, who was also at the forum, shared that investment in his state has been 'surging.' He said Johor attracted RM30.1 billion (S$9.12 billion) in investment during the first three months of 2025, nearly seven times the RM4.1 billion recorded in the same period last year. 'This amount took nine months to achieve last year, and it has been achieved just in three months in 2025,' the chief minister said, adding that this reflects the trust of both local and foreign investors in Johor. He also mentioned that from January to May, Johor's Invest Malaysia Facilitation Centre had secured committed investments worth RM16.71 billion, with another RM26.18 billion in potential investments being considered by 47 foreign and 10 local investors. The centre is responsible for guiding businesses into the SEZ. In January, OCBC had already expected the JS-SEZ deal to attract increased interest from regional firms , given the interest they had observed even before the deal was finalised. Despite strong investor interest, infrastructure concerns already felt by Johoreans were raised during the forum. Japan's ambassador to Malaysia, Noriyuki Shikata, said it is 'essential' to address the pressing issue of traffic congestion in Johor, as it will not only hamper economic activity but will also waste energy, harm the environment, and increase accident risks. In response, PM Anwar said, 'We should be very dynamic and make adjustments wherever necessary.' /TISG Read also: Johor's April investment pipeline at RM23B as it targets high-tech and green investments to create better-paying job opportunities
The Star
20-06-2025
- Business
- The Star
PM: JS-SEZ stands out globally due to trust and stability
ISKANDAR PUTERI: The Johor-Singapore Special Economic Zone (JS-SEZ) stands out globally due to the strong trust and cooperation between Malaysia and Singapore, as well as the zone's political stability and policy clarity, says Datuk Seri Anwar Ibrahim. 'Look at this region, this SEZ. It would not have happened if the two governments, the two systems, do not share common interests in uplifting both countries. 'This is not an ordinary SEZ. You name me any economic zone that involves two countries based on total trust and working together as a team to uplift both societies and countries. 'And therefore I give credit not only to Malaysian leaders in Johor, but also our Singapore friends who have been articulating the support,' the Prime Minister said in his speech during the closing ceremony of the Nikkei Forum here. While many countries offer better incentives than the JS-SEZ, he pointed out that not many have a politically stable system, a strong coalition, willingness to acknowledge past blunders and commit to clear policies moving forward. 'That is why the JS-SEZ is now known internationally, globally, as a new dynamo, because of this collaboration, infrastructure in place and because it is politically stable with clarity of policies,' he said. Anwar, who detailed all the wars and turmoil around the world, said that Asean happens to be one of the most peaceful regions in the world which is vibrant and dynamic economically. He said that trade and investments remain paramount and must be based on the multilateral arrangements. The Prime Minister described Malaysia's relationship with China as very close, adding that not many countries could record the visits of China's President Xi Jinping and Premier Li Qiang within a short span if relations were not extremely close. 'As a trading nation, we need all the investments, support, trading, and transfer of technology that China can offer, as the Japanese have offered for decades in the past,' he added.
The Star
19-06-2025
- Business
- The Star
Japan to aid Johor's rapid economic development
ISKANDAR PUTERI: Japan is ready to support Johor in easing traffic congestion as the state prepares for rapid economic development, says Japanese Ambassador to Malaysia Noriyuki Shikata. He said that addressing congestion was essential for the state as it anticipates significant economic growth with the rapid progress of the Johor-Singapore Special Economic Zone (JS-SEZ). 'Japan is eager to collaborate with Johor by offering cutting-edge solutions, including smart transportation systems and quality infrastructure development. 'By employing Japan's artificial intelligence-driven traffic control systems and digitally optimised public transportation networks, we aim to support Johor in overcoming serious traffic congestion,' he said in his speech during the closing ceremony of the Nikkei Forum. He said that traffic jams not only hamper economic activities, but also waste energy, harm the environment and increase the risk of accidents. 'We hope to cooperate with Johor in becoming a model smart city for transportation solutions, not only in Kuala Lumpur or Johor, but also other megacities in Asean and beyond that are facing traffic congestion issues,' he said. He said the upcoming Rapid Transit System Link, along with the proposed Elevated Autonomous Rapid Transit system, are key to improving public transportation in Johor. On another matter, Shikata also noted that there have been extensive discussions on new green investments in Malaysia, which have resulted in concrete expressions of interest. 'Johor is also emerging as a vital hub for data centres, and these facilities require substantial energy for cooling, presenting a significant environmental challenge. 'In this regard, Japan's liquefied natural gas cooling technology offers an environmentally friendly and efficient solution. 'By adapting this technology, data centres in Johor can significantly improve energy efficiency, reduce their environmental impact and enhance operational performance,' he said. Meanwhile, Invest Johor chief executive officer Natazha Harris said Johor is well-equipped with the necessary frameworks and support systems to welcome more Japanese investments. He said that elements crucial to Japanese investors, particularly talent development and policy consistency, are already in place in Johor. 'For talent, we already have the Johor Talent Development Council, which includes collaboration between academia and industry. 'And on the policy side, we have the Johor Super Lane and the Invest Malaysia Facilitation Centre Johor. 'We already have many things to offer. Now it's a matter of ramping up promotion,' he said when met on the sidelines of the forum here in Medini. He said Invest Johor is focusing its efforts on real projects and partnerships that showcase ongoing progress on the ground. 'These initiatives are not just theoretical, they are already being implemented. 'We have strong case studies to highlight, particularly in Kulai under the Kulai Fastlane, and now with the rollout of the Johor Superlane,' he added. Natazha said the two-day forum here was a good platform for Japanese investors to learn more about what the state has to offer. 'Japanese companies already have a presence in Johor even before the forum. 'Now, interest is growing stronger as Japanese companies have more clarity about what Johor has to offer, on top of the ecosystem already in place. This helps us tell our story to a wider audience, especially with the added leverage from the JS-SEZ,' he said. During the closing ceremony here, Invest Johor also signed a memorandum of understanding (MoU) with Yokohama-based listed technology company NEOJAPAN Inc. Natazha said the MoU marks the start of a strategic collaboration to establish the South-East Asian Centre of Excellence (SEA CoE) within the JS-SEZ. 'Through this initiative, Johor aims to position itself as a leading Asean hub for digital transformation by promoting the JS-SEZ as a base for cutting-edge innovation and talent development. 'As part of the effort, the SEA CoE is expected to train over 1,000 local talents in cloud infrastructure, multilingual IT support, and no-code development, while creating 300 high-skilled jobs in the region,' he said.
Free Malaysia Today
19-06-2025
- Business
- Free Malaysia Today
Japan showing stronger interest in JS-SEZ, says Anwar
Prime Minister Anwar Ibrahim said his Japanese counterpart had expressed his intent to expand private sector investment in Malaysia in a phone call last month. ISKANDAR PUTERI : Japan has expressed a growing interest in the Johor-Singapore Special Economic Zone (JS-SEZ), with the country looking to deepen bilateral economic cooperation with Malaysia. In his closing remarks at the Nikkei Forum Medini, Johor 2025, Prime Minister Anwar Ibrahim said his Japanese counterpart, Shigeru Ishiba, had expressed his intent to expand private sector investment in Malaysia in a phone call last month. 'When I spoke with prime minister Ishiba last month, he not only mentioned Sarawak's green hydrogen efforts but also specifically referred to Johor and the JS-SEZ. 'The fact that Japan's prime minister referred to Johor by name shows the strategic importance of this region in our bilateral ties,' he said at the forum co-organised by Iskandar Investment Bhd. Japanese ambassador to Malaysia Noriyuki Shikata said Japan is eager to support Johor's growth and regional significance, particularly through advanced technological solutions and infrastructure collaboration. He highlighted traffic congestion as a major obstacle to Johor's development, citing its impact on the economy, environment, and road safety. 'Japan is eager to collaborate with Johor by offering cutting-edge solutions, including smart transportation systems and quality infrastructure development. 'By employing Japan's artificial intelligence-driven traffic control systems and digitally optimised public transportation networks, we aim to assist Johor in overcoming serious traffic congestion and becoming a model city for transportation solutions, not only in Malaysia but also in Asean and beyond,' he said. Shikata also said Johor's rise as a regional hub for data centres presents environmental challenges due to high energy demands for cooling. 'In this regard, Japan's liquefied natural gas cooling technology would offer an environmentally friendly and efficient cooling solution. 'By adopting this technology, the data centres in Johor could significantly improve energy efficiency while reducing their environmental impact as well as improving operational efficiency.' On education, Shikata proposed an evolution of Malaysia's 'Look East Policy' to a more reciprocal 'Look at Each Other' approach to foster deeper academic and cultural exchange. He urged government agencies, universities and industry players in both countries to support the creation of joint academic programmes between institutions in Johor and Japan, particularly in sectors such as semiconductors, biotechnology and sustainable energy. Separately, Johor menteri besar Onn Hafiz Ghazi said the state is ready to serve as a committed and capable partner in strengthening Japan-Malaysia collaboration. He added that Johor's hosting of the forum marked a milestone in its growing international profile. 'The forum not only elevates Johor's name on the global stage but also proves that the state is now emerging as a new key player in the geo-economic landscape of the region,' said Onn Hafiz.
