SEZ between Johor and Singapore aims to boost economy, yet development gap threatens progress

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The ambitious Johor-Singapore Special Economic Zone (JS-SEZ) has evolved beyond its initial role in revitalizing Forest City, now positioning itself as a transformative economic hub for cross-border collaboration. Spanning 3,500 square kilometers in southern and eastern Johor, the project aims to drive trade, investment, and employment across 16 key industries, including manufacturing, electronics, and tourism.

During a joint announcement in Putrajaya, Malaysian Prime Minister Anwar Ibrahim praised the unprecedented partnership with Singapore, calling it a “spectacular” example of bilateral cooperation. His Singaporean counterpart, Lawrence Wong, joined him in witnessing the signing of the JS-SEZ agreement, signaling a strengthened economic alliance between the two nations.

Despite Johor’s significant contribution to Malaysia’s GDP—9.5% in 2023—the region faces economic imbalances, particularly in Johor Bahru, where businesses heavily depend on Singaporean visitors seeking lower-cost services. Experts caution that bridging development disparities and ensuring aligned objectives will be critical for the SEZ’s long-term success.

The JS-SEZ represents a strategic opportunity to diversify Johor’s economy while fostering deeper integration with Singapore. If executed effectively, it could redefine economic dynamics along the causeway, benefiting both nations through shared growth and innovation.

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