What's New: Johor-Singapore SEZ Pact

Exciting news about the Johor-Singapore Special Economic Zone (JS-SEZ), which could reshape your career and investment opportunities.

This colossal collaboration covers 3,500 square kilometers—four times the size of Singapore—across nine strategic zones in Johor, including Johor Bahru, Forest City, and Pengerang.

Key highlights:

50 projects planned in the next 5 years, scaling to 100 in a decade.

Expected to create 20,000 skilled jobs across 11 sectors:

• Manufacturing
• Logistics
• Food security
• Tourism
• Energy
• Digital economy
• Green economy
• Financial services
• Business services
• Education
• Health

Here’s what you can expect:

For Working Professionals:

1. The SEZ will create high-value positions for engineers, IT specialists, and healthcare professionals.
2. Enhanced talent development opportunities through new TVET (Technical and Vocational Education and Training) partnerships including:
   • Singapore Polytechnic's partnership with Federation of Malaysian Manufacturers (FMM)
   • ITE Education Services partnership with Johor Skills Development Centre
   • Republic Polytechnic's cooperation with Johor Talent Development Council

This means excellent opportunities for career advancement and cross-border mobility.

For Entrepreneurs and Investors:

1. Gain access to a combined market of over 10 million people.
2. Access to streamlined customs procedures: since January 1, 2025, only a single transshipment permit is required instead of two, reducing costs and improving efficiency
3. Attractive tax incentives and streamlined business operations are available through​ InvestMalaysia.gov​ site
4. The newly established JS-SEZ Infrastructure Fund will support major upgrades in connectivity and transport links.

For Local Businesses:

1. Sectors such as manufacturing, logistics, and food security stand to benefit greatly, with initiatives like urban farming partnerships producing fresh vegetables for Singapore at competitive prices.
2. Access to Malaysia's largest source of FDI: In 2023, Singapore contributed RM 43.7 billion (23.2% of Malaysia's total FDI).
3. Access to renewable energy projects through cross-border trading.

Companies are leveraging the JS-SEZ for operational resilience, diversifying locations to reduce risks associated with relying solely on Singapore.

Digital Nomads, Take Note:

1. The DE Rantau Nomad Pass offers flexible work arrangements in Malaysia.
2. Tech professionals need a minimum annual income of just USD 24,000; non-tech roles require USD 60,000.
3. The pass allows stays of 3-12 months, extendable up to 24 months.

Addressing Challenges:

Malaysia’s Economy Minister Rafizi Ramli emphasised the critical need to reduce immigration clearance delays—currently up to several hours during peak periods—to unlock the full potential of the SEZ

Plans are underway to harmonise customs policies and adopt technology for more efficient border crossings.

Strategic Benefits:

The JS-SEZ aligns with the “China Plus One” strategy, helping businesses diversify supply chains beyond China.

While companies expand into Johor, many plan to maintain headquarters and operations in Singapore, leveraging the strengths of both locations.

Reduced trade barriers, automated immigration lanes, and paperless goods clearance will drive the SEZ’s success.

These improvements will create a more integrated economic environment that benefits both nations. Malaysia’s Economy Minister, Rafizi Ramli, emphasised the need to reduce immigration clearance delays—currently up to several hours during peak periods—to unlock the full potential of this ambitious project.