KUALA LUMPUR, Jan 18 – The Johor-Singapore Special Economic Zone (JS-SEZ) is set to be advantageous for Malaysia in the long term as it benefits from cross-border labor activity and investment flows.
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Ho Yi Khor, chief economist at ASEAN+3 Macroeconomic Research Office (AMRO), said that Malaysia and Singapore’s special economic zones have a close relationship and that special economic zones are complementary to both countries. He said it would be a “game changer” for the company.
“Singapore is a labor-constrained economy and is highly dependent on foreign workers. One of the main sources of foreign workers is Malaysia.
“Singapore also has a lot of savings and capital and Malaysia will benefit from investments flowing into Johor from Singapore.
“Therefore, they (factors) will boost both economies in the long term,” he said at a virtual media briefing on the ASEAN+3 Regional Economic Outlook (AREO), AMRO’s quarterly update in January, here today. Told.
On January 11, Malaysia and Singapore signed a memorandum of understanding to work on the JS-SEZ to strengthen economic connectivity between Johor and Singapore.
Prime Minister Datuk Seri Anwar Ibrahim and Singapore Prime Minister Lee Hsien Loong witnessed the signing.
The JS-SEZ is expected to further boost trade between Johor and Singapore, and could flourish like the Chinese city of Shenzhen, which is a successful example of a special economic zone linked to Hong Kong.
It is also expected to improve the business ecosystem of both Iskandar Malaysia and Singapore.
Sectors covered by this zone include electronics, financial services, business-related services, and healthcare.
Last year, Johor secured foreign investments worth RM70.6 billion in various sectors.
Singapore is the second largest foreign investor in Johor, accounting for approximately 70% of total foreign direct investment in manufacturing in Johor. ― Bernama