The Singapore Business Federation recently released its report “Greater Together: Two Economies, One EcoSystem,” which was presented at the Johor-Singapore Special Economic Zone Joint Investor Forum. This marks the second holding of the joint investor forum, which attracted nearly 200 businesses looking into operations or investments in Johor.
The report was based on the views of 160 companies in any industry that operate out of Singapore and sought to collect feedback on the development process of the SEZ which can benefit both the countries. What was intriguing about this survey was that 93% of those interviewed saw Johor as an appealing investment destination, with half already doing business in the state.
Singapore and Malaysia recently signed a Memorandum of Understanding (MOU) in January 2024 to progress the JS-SEZ, with the intention to enhance economic connectivity and ease cross border movement of people and goods. As both governments are likely to seal it soon, Deloitte’s business sentiment on this initiative has come in at the right time.
JS-SEZ Singapore Business Working Group’s Chairman Mr Teo Siong Seng stated that High interest in our report indicates a high degree of potential for JS-SEZ in our region. “This initiative is not simply another development; it has great potential to be a game changer for Malaysia and Singapore.”
This is not just integration; it’s building an economic powerhouse that uses our complementary strengths sustainably. By bridging our economies, we’re opening new opportunities for businesses on both sides of the Causeway,” he added .
Report states three successful factors of JS-SEZ:
- Building complementary economic strengths : The SEZ should capitalize on the comparative advantages that Johor has in operating costs and land availability on one hand, while using Singaporean strengths in connectivity, branding, talent, and headquarters functions on the other. The target sectors will be manufacturing, logistics, digital industries, healthcare, and education.
- “One EcoSystem, Two Economies”: The JS-SEZ will not function unless both governments make significant contributions together. For this model, there needs to be aligned frameworks and processes having a system governance body; else governance will only be designed for the businesses in the SEZ.
- Embracing experimentation and agility: With closer economic integration, adaptable strategies will be a requirement-participating in policy or regulatory sandboxes to ensure maximum inclusion and adaptability in the economic space for the JS-SEZ.
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