The Johor-Singapore Special Economic Zone (JS-SEZ) is seen as a strategic initiative to boost both Malaysia’s and Singapore’s economies by attracting high-value investments and creating skilled jobs. The project is seen as a model of cross-border cooperation, though challenges around governance and social impact remain. These various themes were explored and discussed at “The Future of Growth: Malaysia & the JS-SEZ” event organised by the Singapore Institute of International Affairs (SIIA), on 25th April 2025.
Malaysia’s Deputy Minister of Investment, Trade and Industry, Mr. Liew Chin Tong engaged in a fireside chat with SIIA’s Chairman, Associate Prof Simon Tay, as he shared his perspectives on the JS-SEZ, in the current global context, including the impact of Trump’s tariffs and the reshaping of global trade.
This was followed by a panel discussion with, Ms. Grace Lim, Senior ASEAN and Asia economist, UBS Investment Bank Global Research, Ms. Patricia Goh, Committee Member, GlobalConnect@SBF; and Chief Executive Officer, Southeast Asia Investment, CapitaLand Investment, and Mr. Ang Choo Pin, Managing Director, Government Affairs, Asia Pacific, Middle East and Africa (AMEA), FedEx Corporation. The panellists looked at trade facilitation and investment prospects, and how the JS-SEZ could enhance cross-border collaboration between Malaysia and Singapore. Mr. Satyanarayan Ramamurthy, SIIA’s Associate Council Member served as the moderator for the discussion.
Key Takeaways
Fireside Chat
Deputy Minister Liew Chin Tong noted that the current global environment characterized by trade tensions and ongoing supply chain disruptions create a backdrop of unpredictability that necessitates stronger regional cooperation. He added that the world is shifting from a “just-in-time” to a “just-in-case” approach, with priorities for shorter and more resilient regional supply chains.
Past attempts of cross-border collaborations, such as Johor-Singapore-Riau Island – Growth Triangle (SIJORI) and Iskander Malaysia faced its own obstacles, including a less receptive global environment and having a stronger focus on consumption rather than manufacturing or supply chains.
Addressing practical issues like border congestion and resource management will be critical for attracting investment and realizing the JS-SEZ’s potential. The long-term success of the JS-SEZ may depend on its ability to innovate beyond just facilitating existing trade flows and potentially exploring deeper industrial and technological collaboration between Singapore and Malaysia.
Panel Discussion
The JS-SEZ represents an initiative that reduces existing barriers to trade, FDI and people-to-people connectivity between Singapore and Johor. In the context of global trade uncertainty and disruptions, Patricia highlighted the need for supply chain agility and efficiency. Attracting companies to the JS-SEZ involves moving entire supply chains, not just individual companies. This requires a collective and focused effort on specific industries rather than a diverse approach. Companies will also need to see continuous improvement and evidence that their pain points are being addressed to build confidence and encourage relocation or expansion into the JS-SEZ.
The JS-SEZ’s competitiveness against other hubs in Asia, such as Vietnam and Thailand, needs to be built upon existing comparative advantages. The unique proposition of Singapore and Johor lies in the combined ability to offer both high-value innovation (Singapore) and cost efficiency (Johor). Grace noted that it includes leveraging Johor’s established strengths in sectors like Electrical and Electronics and aligning with Singapore’s production base in target sectors such as aerospace, medical devices, and petrochemicals.
Choo Pin underpinned the building of trust between the two countries as being fundamental to the success and resilience of the JS-SEZ. Working on confidence-building measures during non-crisis periods is crucial for enabling effective collaboration during disruptions. Beyond trust, key success factors for the JS-SEZ as a lasting model for cross-border cooperation include execution and momentum of projects, responsiveness to feedback, and alignment with the long-term strategic objectives of both Malaysia and Singapore.
