"In January, Malaysia and Singapore agreed to set up a special economic zone in the Malaysian state of Johor, which borders Singapore. Both Singapore and Malaysia's governments, as well as the state government of Johor, are now working together in a unified office to offer a single narrative for investors, expediting high-value projects and the movement of goods and people across the border."
"Investments in the zone reached a whopping 56 billion Malaysian ringgit ($18.5 billion) in the first half of 2025, with Lee projecting 100 billion ringgit ($24.1 billion) of investments by the end of the year, far ahead of the 48.5 billion ringgit invested in Johor during the entirety of last year. But convincing corporations to invest in the Johor-Singapore economic zone isn't easy, and goes beyond just offering a cheaper place to do business."
"Yet the Johor-Singapore special economic zone is not meant to be an "industrial park with a nicer brochure," Lee explained. "We really need to be able to connect our SMEs to global supply chains and to create brands owned within the zone," he continued. "For the long run, we have to look at how we are going to create a regional champion.""
Malaysia and Singapore agreed to set up a special economic zone in Johor to attract high-value investments in manufacturing, tourism, and data centers. Governments of both countries and the Johor state government now operate a unified office to present a single narrative for investors and expedite projects and cross-border movement of goods and people. The SEZ aims to connect SMEs to global supply chains and foster brands owned within the zone to build a regional champion. Investments reached 56 billion ringgit in the first half of 2025, with a projection of 100 billion by year-end. The SEZ emphasizes five- to ten-year horizons to ensure investment clarity and capital recovery, while acknowledging that corporations require a clear business case beyond lower costs.
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