Malaysia
SINGAPORE FIRMS COMMIT S$5.5 BILLION OF INVESTMENTS TO SEZ IN JOHOR; MALAYSIA UNVEILS NEW STEPS TO WOO INVESTORS - PART 2
COOPERATION OVER CONTESTATIONIn his speech, Singapore’s Deputy Prime Minister Gan Kim Yong said that since the JS-SEZ memorandum of understanding signing in January 2024, Singapore-based companies have committed more than S$5.5 billion in investments into Johor.“We look forward to more investments in the months ahead,” he added.Mr Gan, who is also the trade and industry minister, said the three key priorities to realise the economic zone’s “full potential” are to anchor flagship projects, make it easier to do business and ensure inclusive growth for SMEs.“At a time when global trade is slowing and protectionist pressures are rising, the Johor-Singapore SEZ stands as a strong illustration of what countries can achieve when they choose cooperation over contestation, and partnership over protectionism,” he said. Mr Gan said the project has made “good headway”.Spanning 3,571 sq km in southern Johor, the zone will consist of nine “flagship areas” catering to the economic sectors identified.Both countries must also continue to make the economic zone more “business-friendly” and “future-ready”, Mr Gan said.This includes streaming regulatory processes, improving the ease of cross-border flow of goods and professionals, and strengthening skills and talent development to raise the quality of human capital in the zone.Singapore has established a Joint Johor-Singapore SEZ Project Office, which comprises its Ministry of Trade and Industry, the Economic Development Board and Enterprise Singapore, to work directly with Malaysian counterparts to smoothen regulatory processes and help companies establish themselves on both sides, said Mr Gan. An aerial view of the Causeway on Aug 6, 2025. (File photo: CNA/Zamzahuri Abas)SERVING THE COST-SENSITIVE AND TIME-CRITICALHe cited several firms that have benefited from the partnership, including global logistics firm Kuehne+Nagel (KN). The firm has developed an integrated transport and logistics network across Singapore and Johor. In Singapore, it operates from six sites, including a 48,000 sqm logistics hub at Pioneer Crescent.A total of 75,000 sqm of fulfillment center space is supported by 500 employees. The facilities serve high-value industries such as pharmaceuticals and semiconductors.In Johor, KN operates from the Port of Tanjung Pelepas and a central office, offering nearly 50,000 sqm of fulfillment capacity. Its facilities are supported by 85 employees.Managing director of global logistics firm Kuehne+Nagel Peer Rasmussen on Oct 14, 2025. (Photo: CNA/Lim Li Ting)“With seamless road freight connectivity, businesses can tap Malaysia's cost-efficiency alongside Singapore's global connectivity through Port of Singapore Authority (PSA) and Changi Airport, benefiting from the combined strengths of both markets as part of a broader regional strategy.” Such a dual-location model gives customers flexibility – time-critical cargo can move through Singapore while cost-sensitive or scalable activities are managed in Johor. Describing KN's experience operating within the JS-SEZ as “encouraging”, Mr Rasmussen said there is still room for progress, such as the wider adoption of digital customs processes and paperless trade.“This would not only accelerate clearance times but also contribute to more sustainable cross-border operations,” he said. (ICE KUALA LUMPUR)
Fonte notizia: 14 ottobre 2025, Kuala Lumpur
