KUALA LUMPUR – Johor has proposed that its business hub, Iskandar Malaysia, be designated as the special economic zone planned between Singapore and Malaysia.
In a report, The Straits Times said it was unclear whether Putrajaya had agreed to this proposal or if it would engage in discussions with Singapore.
A memorandum of understanding on the Johor-Singapore Special Economic Zone (SEZ) is expected to be inked by both sides on January 11.
“The Iskandar development region is ready-made to be the SEZ,” said Johor Investment, Trade and Consumer Affairs exco Lee Ting Han.
Iskandar, which was conceptualised as an economic growth corridor in 2006, spans 2,217 sq km across southern Johor, an area three times the size of Singapore.
It includes the state’s heavy industrial zone Pasir Gudang, its capital city Johor Bahru, Iskandar Puteri, Kulai, Sedenak and part of Pontian town.
It attracted foreign investments of RM153.4 billion between 2006 and 2022 in various industries, ranging from electrical and electronics products and data centres, to pharmaceuticals and food processing.
Singapore is the second-largest foreign investor in Iskandar after China, with RM33 billion committed as at June 2023.
Investment has slowed in recent years due to the Covid-19 pandemic and border restrictions, contributing to a property glut.
Lee said that the total investment in Iskandar since its inception was forecast to exceed RM400 billion in 2023.
“Iskandar has the necessary infrastructure and facilities, such as highways, ports, utilities supply, townships and educational institutions, that would be suitable for the SEZ.
“The Iskandar growth corridor would be a good start, as the area encompasses the planned integrated development Ibrahim Technopolis in Sedenak town, the heavy industrial area in Pasir Gudang and the proposed special financial zone in Forest City,” he said.
The SEZ was officially announced in October 2023 during Prime Minister Datuk Seri Anwar Ibrahim’s visit to Singapore for the Singapore-Malaysia Leaders’ Retreat.
Lee said Johor’s proposal had been submitted to the Economy Ministry but it was not known if the proposal would form part of the SEZ plans being discussed with Singapore.
According to the report, Malaysia is hoping to attract nine sectors to the SEZ, namely logistics, energy, manufacturing, tourism, healthcare, education, financial services, business services and digital economy.
Lee said the definitive agreement with details of the SEZ, including its physical location, was expected to be signed in the fourth quarter of 2024. – January 6, 2024
