MALAYSIA wants to leverage its location to become an energy and chip manufacturing hub this year, riding a recent jump in investments and a favourable outlook for the domestic economy, its premier and economic minister said on Thursday.

Malaysia is fast becoming a haven in Southeast Asia, with foreign investors returning as improving growth and a stable currency set it apart from peers grappling with political flux and economic uncertainty.

Prime Minister Anwar Ibrahim said Malaysia’s economy rebounded dramatically last year, spurred by an influx of strategic investments, most substantially in renewable energy and artificial intelligence infrastructure. He added inflation and the ringgit were stable and the stock market was the region’s top performer.

“In 2025, we want to double down on our geographical centrality, as a conduit for electricity, talent and supply chain diversification,” he said at an economic forum.

Anwar said Malaysia will now aim to refine its expertise in oil and gas, semiconductors, and Islamic finance to become a global market leader in each field.

Economy minister Rafizi Ramli said Malaysia is looking to produce its own graphics processing unit chips as demand for artificial intelligence and data centres grows.

“We are hoping that we can start producing made-by-Malaysia GPUs and chips in the next five to 10 years,” he said.

Malaysia, a major player in the semiconductor industry that accounts for 13% of global testing and packaging, is targeting over $100 billion in investment for the sector.

Source: The Star

Malaysia aiming to become energy, chip making hub

Details of the new investment incentive scorecard, aimed to ensure investments that bring broader economic benefit to the rakyat, is expected to be announced in the second quarter of 2025 (2Q2025), according to Deputy Minister of Investment, Trade & Industry Liew Chin Tong.

Giving an idea of what criteria interested investors could expect to see on the scorecard, Liew noted that setting up shop in least developed states or good ESG practices will play a part in scoring higher. 

“We want to see whether industries can help level the playing field between more advanced cities and the least developed states. The scorecard is with that intention,” Liew said during a panel discussion at the Malaysia Economic Forum 2025 on Thursday.

The scorecard is a continuation of the National Investment Aspirations (NIA) launched back in 2022. Back then, while investment incentive frameworks were set up, Liew noted that a standardised scorecard was not created.

With the new scorecard, Liew said the government wants to see investments bring in more jobs as well as support Malaysia’s development of a more complex economy.

“That means we do not want to incentivise an industry that does not help us create a more complex economy. We do not want to incentivise an industry that does not value-add,” he said.

 “We need a new consensus on how to develop and incentivise our industries. Quite often, you hear noises or comments that various governments over the years favour foreign investment. Now, this [scorecard] is also one way to level the playing field.

“Regardless, of whether foreign or local investment, the point is we want to see some of these objectives being achieved,” he added. 

Liew said the investment incentive scorecard is not under the purview of Miti but the Ministry of Finance, which will announce its details in 2Q2025.

It was previously reported that the criteria of the scorecard would be based on New Industrial Master Plan (NIMP) 2030.

The NIMP is guided by four key missions, namely advancing economic complexity, tech up for a digitally vibrant nation, pushing for net zero, and safeguarding economic security and inclusivity.

Source: The Edge Malaysia

Details on new investment incentive scorecard to be announced in 2Q — deputy minister

The government refuses to incentivise industries that does not add value to the economy under the  New Investment Incentive Framework. 

Investment, Trade and Industry Deputy Minister Liew Chin Tong said the government wants investment in industries that can help level the playing field between the more advanced cities and less developed states. 

He added that the new framework is intended to find ways that will develop industries in the country. 

“Malaysia is at the right time to shine as we have accumulated quite a number of strengths which were ignored during the period of time when China was the factory for the world.” 

“Today, the world has changed and Malaysia is well positioned to take advantage of the complex world. But we can’t do it alone , we must do it together with Asean,” he said at a panel session at Forum Ekonomi Malaysia. 

“The intention is also to level the playing field. Regardless of it being a local or foreign investment, we want to see some of these objectives achieved,” he said. 

In a separate panel session, Finance Minister II Datuk Seri Amir Hamzah Azizan said with the development of the framework, the government wants to be transparent to those who intend to invest in Malaysia. 

“Clarifying the infrastructure is what we bring to the investment framework. It also needs to address national needs. 

“We bring in higher investments that create better job quality for Malaysians,” he said. 

Prime Minister Datuk Seri Anwar Ibrahim announced the New Investment Incentive Framework during the tabling of Budget 2025. 

It includes a strategic investment fund worth RM1 billion and is aimed at enhancing the capacity of local talent and encouraging the growth of high-value activities in the country. 

Source: NST

Government will only incentivise investments that add value to Malaysian economy – Liew

As the 2025 Asean chair Malaysia will focus on leveraging the Regional Comprehensive Economic Partnership (RCEP), the world’s largest trade agreement now in force.

Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said fully implementing the RCEP could position Asean as a hub for regional growth.

This could be the key highlight of Malaysia’s chairmanship, he said in his closing remarks at the Asean Economic Opinion Leaders Conference: Outlook for 2025.

RCEP involves 15 countries — the 10 Asean member countries namely, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam, and the other five being Australia, China, Japan, South Korea and New Zealand.

RCEP is the world’s largest free trade agreement (FTA). It makes up about 30 per cent of the global Gross Domestic Product (GDP) and about a third of the world’s population.

It has a mechanism for free trade among participating countries with a set of rules and procedures for accessing preferential tariffs across the countries.

Tengku Zafrul said Malaysia also intends to strongly drive negotiations on the Asean Digital Economy Framework Agreement (DEFA), launched in 2023.

By 2030, the digital economy could add US$2 trillion to the region, but for that to happen, Malaysia must help Asean nations harmonise their digital policies, he said.

As the Asean chair, Malaysia will also propose a joint declaration on the Asean-Gulf Cooperation Council (GCC) economic cooperation during the 46th Asean Summit in May 2025.

This declaration will pave the way for closer economic ties with the GCC, a region with significant economic potential, Tengku Zafrul said.

Source: Bernama

Fully implementing RCEP could position Asean as a hub for regional growth — Tengku Zafrul

The Johor-Singapore Special Economic Zone (JS-SEZ) agreement signed on January 7 is expected to bring immense benefits to Malaysia, particularly Johor, positioning the state as a central economic hub in the future.

Universiti Tun Hussein Onn Malaysia (UTHM) Technology Management and Business Faculty senior lecturer Mohamed Ismail KP Pakir Mohamed, said the agreement is poised to attract industry players and foreign investors, significantly boosting job opportunities.

As the head of UTHM’s Manufacturing Technology Management Focus Group, Mohamed Ismail noted that key sectors within the JS-SEZ, such as oil and gas, data centres, and semiconductors, will create job prospects for graduates of Technical and Vocational Education and Training (TVET).

“In the long term, TVET graduates will meet market demand, and with the JS-SEZ, job opportunities will flourish. Skilled and semi-skilled workers nationwide will also focus on this area,” he said in an interview with Bernama today.

He added that over the next five to ten years, fewer Malaysians may need to seek work abroad, particularly in Singapore, as companies and investors from Singapore are expected to establish operations within the JS-SEZ. This development could have a positive impact on Malaysia’s economy.

Mohamed Ismail also highlighted the potential for growth in education within the JS-SEZ, noting the likelihood of international schools and other educational institutions establishing branches, similar to developments in Forest City and Iskandar Puteri.

“Population growth is expected, not only from across Malaysia but also through the arrival of skilled foreign workers. Residents will benefit from business opportunities, particularly in the food and retail sectors,” he said.

He added that the JS-SEZ would strengthen Malaysia-Singapore ties beyond economics, opening doors to collaborations in various fields.

The JS-SEZ is expected to impact the tourism sector as Singaporean investors operating in Johor may explore other parts of Malaysia.

“This collaboration echoes historical ties when Malaysia and Singapore worked closely together as part of the same country,” Mohamed Ismail said.

For the JS-SEZ to achieve its potential, Mohamed Ismail emphasised the need for both state and federal governments to enhance infrastructure and facilities, drawing parallels to Shenzhen, China.

“Housing should be prioritised as demand will increase. The government must build more affordable housing for local workers relocating to the area,” he said.

He called for improved public transport, including better bus services and a robust rail network similar to the Klang Valley. Revisiting the High-Speed Rail (HSR) project connecting key cities like Batu Pahat and Muar would further facilitate commuting.

Additionally, Mohamed Ismail suggested upgrading cargo and passenger facilities at Senai International Airport and exploring the construction of mini airports in key districts to reduce reliance on Singapore’s airports.

The West Coast Expressway (WCE) project linking Banting in Selangor to Gelang Patah in Johor was also commended for its potential to connect the western coast of Peninsular Malaysia to the JS-SEZ.

The JS-SEZ is a mega development project covering areas such as the Iskandar Development Region, Desaru, Johor Bahru, Iskandar Puteri, Tanjung Pelepas, Tanjung Bin, Pasir Gudang, Senai, Skudai, and Sedenak.

Source: Bernama

JS-SEZ: A game-changer for Johor’s economy, job market

Melaka recorded encouraging investments of RM5 billion as of last September,“ said Chief Minister Datuk Seri Ab Rauf Yusoh.

He said the amount comprised RM0.8 billion in foreign investment and RM4.2 billion from domestic investors.

“This achievement is something to be proud of because it indirectly demonstrates the confidence of foreign investors in the state’s development and economic potential.

“It is also a positive step that can inspire stakeholders to continue to work hard and strengthen cooperation in achieving greater progress for Melaka,“ he said at the MCORP Group Gala Dinner which was also attended by State Secretary Datuk Azhar Arshad and State Investment, Industry and TVET Development Committee chairman Datuk Khaidhirah Abu Zahar.

Ab Rauf expressed the need for continuous to attract investors to the state, especially in the tourism sector with Melaka once again capturing global attention this September being the host for World Tourism Day and the World Tourism Conference 2025.

“In light of this, I encourage MCORP to remain optimistic and proactive in enhancing investment promotion efforts, thereby fostering a conducive investment climate to attract more investors to the state,“ he said.

He also highlighted that as of last November, MCORP’s eight subsidiaries recorded a profit of RM7.7 million, marking an increase of RM4.3 million compared to the same period in 2023.

“This achievement is expected to be a catalyst for further success, demonstrating MCORP’s potential to lead Melaka’s development in a more dynamic and sustainable direction,“ he added.

Source: Bernama

Melaka records investments worth RM5 bilion as of September last year

Investors in the Johor-Singapore Special Economic Zone (JS-SEZ), will enjoy new tax incentive packages announced by the Johor state government and Finance Ministry.

Menteri Besar Datuk Onn Hafiz Ghazi said the tax incentive package that took effect on Jan 1, aims to position Johor as a premier destination for high-value investments and bolster economic ties with Singapore.

Investors in JS-SEZ are eligible for suite incentives that include a special corporate tax rate of five per cent for up to 15 years for companies investing in advanced sectors such as Artificial Intelligence (AI), quantum computing, medical devices, aerospace manufacturing, and global services hubs.

The prevailing corporate tax rate in Malaysia stands at 24 per cent. However, companies in the selected sectors typically enjoy special tax rates on a case-by-case basis.

Eligible knowledge workers in the JS-SEZ will enjoy a 15 per cent income tax rate for 10 years, while businesses in flagship areas will receive bespoke incentives.

He said tailor-made incentives were also allocated to certain businesses operating in flagship development focus areas.

“The collaboration between the Johor and the Madani governments allowed for this transformative package in JS-SEZ, to ensure it’s a strong foundation to attract quality investments.

“This initiative solidifies Johor’s position as a key trade and maritime hub,” he said in a statement today

He added the JS-SEZ incentive provided the much-needed stimulus to elevate Johor’s standing on the global investment map.

In addition to the tax incentive package, the government also agreed to introduce lower entertainment duties, beginning Jan 1.

Meanwhile,  Finance Minister II Senator Datuk Seri Amir Hamzah Azizan said the JS-SEZ will be a driving force in Malaysia’s economic growth.

“The package exemplifies the government’s commitment to making Malaysia a top investment destination.

“It leverages Johor’s strategic location and synergy with Singapore to create high-income jobs and attract global businesses,” he said.

The JS-SEZ tax incentives are additional to existing incentive packages offered and complement the New Investment Incentive Framework (NIIF) introduced in Budget 2025 by Prime Minister Datuk Seri Anwar Ibrahim.

The framework seeks to promote sustainable, high-value industries to achieve equitable economic growth nationwide.

To streamline the investment process, the Invest Malaysia Facilitation Centre Johor (IMFC-J) has been established to provide end-to-end support, including applications, approvals, and reinvestments.

The JS-SEZ agreement, witnessed by Anwar and Singapore Prime Minister Lawrence Wong during the 11th Malaysia-Singapore Leaders’ Retreat, reflected the deep bilateral ties and partnership between the two nations.

Further details on the flagship zones and incentives are expected to be announced soon.

Source: NST

Johor-Singapore SEZ: New incentive package to attract high-value investments

Malaysia welcomes direct investments from Indonesian companies and encourages strategic collaborations such as mergers between companies owned by Malaysian and Indonesian entities, said Datuk Seri Anwar Ibrahim.

The prime minister and finance minister said this initiative will further strengthen bilateral relations between the two countries.

“I raised this matter during a courtesy visit from Sinar Mas chairman Franky Oesman Widjaja and his delegation this afternoon.

“I also informed them that, in the context of Malaysia’s Asean chairmanship this year, the success of infrastructure development across various countries requires confidence and strong cooperation among ASEAN companies,” he said in a post on his social media accounts today.

The prime minister said Sinar Mas was one of Indonesia’s leading business groups, operating in seven key sectors: pulp and paper, agriculture and food, financial services, real estate, telecommunications, energy and infrastructure, and healthcare services.

Source: Bernama

Anwar: Malaysia welcomes Indonesian investment, strategic mergers

The Johor-Singapore Special Economic Zone (JS-SEZ) can potentially propel Johor to become the southern growth engine for the economy, said RHB Investment Bank Bhd (RHB IB).

In a note today, the investment bank said new foreign direct investment (FDI) flows from across the region would fuel Johor-centric opportunities.

“We remain positive on the broader market with external volatility offset by domestic stability and bolstered by ample liquidity, steady corporate earnings and attractive valuations.

“We believe the JS-SEZ is a compelling proposition on its own – with Johor offering a lower operating cost environment, access to land, ample supply of skilled labour and adequate infrastructure to connectivity coupled with Singapore’s access to capital and technology,” it said.

RHB IB said the signing of the JS-SEZ agreement will uplift market confidence as the bilateral commitments represent an unprecedented level of progress and collaboration, and real estate in Iskandar Malaysia is expected to undergo a multi-year growth phase.

“The influx of FDIs, the opening of new offices by local and foreign financial institutions in Forest City, as well as the higher number of travellers from Singapore, should have a strong positive spillover effect on the real estate sector,” it noted.

Similarly, Maybank Investment Bank Bhd (Maybank IB) also anticipates the property sector will benefit positively as the signing of the JS-SEZ validates the sustained implementation of government initiatives.

“This is the next largest milestone after the launch of the National Energy Transition Roadmap (NETR) in 2023, which is progressing well, in our view,” it said.

Maybank IB also stated that the JS-SEZ agreement marks a new era of investment opportunities and the leadership and commitment of the two countries, which form the foundation pillars of the special economic zone.

Meanwhile, Kenanga Investment Bank Bhd (Kenanga IB), in a note, said the first wave of investments could be from Singapore given its proximity to the JS-SEZ.

It said the JS-SEZ targets to welcome 100 projects in 10 years and has trained its sights on 50 projects in five years.

“At the Malaysian country level, manufacturing investments from Singapore, on average, have seen around 100 investments approved annually over the past six years.

“On average, each investment computed is about RM150 million, though this should not be reflective of the ones targeted within the JS-SEZ, which is of high value,” it added.

Source: Bernama

JS-SEZ can drive Johor to become southern growth engine for economy – analysts

PM lauds unique joint initiative with Singapore to promote southern corridor

The Johor-Singapore Special Economic Zone (JS-SEZ) is a rare and unique joint initiative between Malaysia and Singapore to mutually attract top global investors, says Datuk Seri Anwar Ibrahim.

The Prime Minister said it was “very rare” to find two countries working together as a team and to promote investments for both nations in a single project.

“I think that by itself is a great incentive other than the financial incentives and infrastructure, where two countries work as a team, it is a rare feat,” said Anwar at a joint press conference with Singapore Prime Minister Lawrence Wong here yesterday.

Both prime ministers witnessed the exchange of the agreement for the JS-SEZ along with six other memoranda of understanding (MOUS) and one Letter of Intent.

The MOUS involve the field of carbon capture and storage, cooperating on emissions under Article 6 (Paragraph 2) of the Paris Agreement and cooperation in the field of urban development.

It also includes an MOU cooperation in social welfare, women, persons with disabilities empowerment, family, children and community development.

There is also an MOU on preventing and combating transnational crimes and an MOU on cooperation in the higher education sector.

The JS-SEZ, which encompasses an area of 3,505sq km, is a unique initiative between Malaysia and Singapore to promote both nations and attract investments.

Touted as an investment gateway to the Asean market, it is expected to strengthen business collaboration between Singapore, the Iskandar Malaysia economic corridor and the Pengerang petrochemical hub.

The key attractions of the special zone will include a passport-free immigration system and improved passenger rail lines between Johor and the city-state.

Target sectors of the JS-SEZ include manufacturing, logistics, digital, industry, healthcare and education.

Anwar said Malaysia is looking forward to enhancing bilateral relations, particularly with the JS-SEZ, which to him was a spectacular move within the region as well as internationally.

Wong said there were many advantages for foreign investors to invest at the JS-SEZ.

“They should look at the entire ecosystem, not Johor by itself or Singapore by itself, but as an ecosystem that complements one another.

“There are also many strengths that we can harness from both sides that will allow both to be more competitive, enhance our value proposition and jointly attract more investments to our shores,” he said.

“We already have existing incentives for businesses who want to expand overseas, and those businesses from Singapore can tap into those incentives,” said Wong.

“The greater potential from the project is not just Singapore business going to Johor, but it is about both sides working together to attract new investment projects globally.

“If we can come together, which we intend to market the JS-SEZ together, and promote it as a combined destination, it will attract global investments to our respective countries,” he said.

Wong and his delegation arrived in Malaysia on Monday for the 11th Malaysia-singapore Leaders’ Retreat.

The annual retreat was established in 2007, serving as a cornerstone of Malaysia-singapore relations and the highest-level bilateral platform.

Source: The Star

JS-SEZ a rare feat, says Anwar

The Johor-Singapore Special Economic Zone (JS-SEZ) aims to create 20,000 highly skilled jobs in the next 10 years, says Rafizi Ramli.

This is achieved by getting firms to implement 100 projects within that time in the 3,505sq km zone, said the Economy Minister.

The zone covers six cities and townships in Southern Johor – Johor Baru, Iskandar Puteri, Pasir Gudang, Kulai, Pontian and Pengerang.

“Through this agreement, Malaysia and Singapore will pool together each of their strengths to develop a special economic zone.” Rafizi said after the signing of the JS-SEZ agreement by Malaysia and Singapore yesterday in Kuala Lumpur.

“Malaysia’s abundant land and an established industrial base will complement the technological expertise and financial networks of Singapore to turn the JS-SEZ into one of the most attractive investment destinations in the world,” he added in a Facebook post after the signing ceremony.

The JS-SEZ is inspired by zones such as Shenzen and Suzhou in China, where global firms are encouraged to expand their operations by leveraging the advantages of both Johor and Singapore.

Among the competitive advantages of setting up shop in the JS-SEZ are affordable land and labour prices and a favourable tax regime, according to documents shown by the ministry.

The JS-SEZ will focus on 11 industry sectors, including manufacturing, logistics, energy, and the digital and green economies, that are spread across nine flagship zones.

They are Johor Baru city centre, Iskandar Puteri, Tanjung Pelepastanjung Bin, Pasir Gudang, Senaiskudai, Sedenak, Forest City, the Pengerang Integrated Petroleum Complex and Desaru.

In a special briefing last week ahead of the signing ceremony, Rafizi announced five new priority fields for the JS-SEZ: aerospace, medical devices, electrical and electronics, chemicals and pharmaceuticals.

He also said that if the zone can get 50 projects up and running in the next five years, it would create a critical mass that will enable the area to reach 100 projects in 10 years.

He added that firms looking to expand their operations in the JS-SEZ can apply for support to get new roads, water and electricity lines via a special infrastructure fund.

The fund will allow investors to apply for infrastructure tailormade to their projects without having to go through the conventional but much lengthier government budget process.

“For the JS-SEZ, we have set aside a fund that can be used straight away on a project-by-project basis that is driven by the type of investment.

“They can ask what infrastructure they need for their projects, and we will work with all the agencies necessary to get what they need,” Rafizi said during the briefing.

Other financial carrots, such as special tax rates, will be announced by the International Trade and Industry Ministry, he added.

Source: The Star

Rafizi: Area will create 20,000 skilled jobs in 10 years

The Johor-Singapore Special Economic Zone (JS-SEZ) will bring a positive transformation to the state, says Mentri Besar Datuk Onn Hafiz Ghazi.

“Not only will the zone bring more economic opportunities, it will also leave a positive impact on Johor’s development.

“I believe the zone will open more doors for businesses and improve economic ties between Malaysia and Singapore.

“It will create more high-paying job opportunities, increase investments and strengthen major sectors in the state,” he said in a Facebook post following the exchange of the joint agreement between Malaysia and Singapore to develop the JS-SEZ yesterday.

Onn Hafiz said the agreement was a culmination of in-depth discussions and preparations made by both countries to ensure the initiative reaches the intended goals.

He hopes that all the plans will be implemented well to benefit the people in Johor and the rest of the country.

State investment, trade, consumer affairs and human resources committee chairman Lee Ting Han views the JS-SEZ agreement as a new chapter in the region’s economic development.

“This is in line with the international trend, integrating economy, sustainable development and high technology.

“Johor’s strategy for the JS-SEZ is to leverage on our position as the gateway to Asean, an economic bloc with a population of more than 680 million and GDP of US$3.9 trillion in 2023,” he said.

Lee said the state government had drawn up a plan for the zone to achieve the targeted sustainable and comprehensive development goals.

“We are expecting to see gradual economic growth in the JS-SEZ in the next five to 10 years, depending on the implementation phases and our attractiveness to international investors.

“In the starting phase, our focus will be on infrastructure development such as the Johor-singapore Rapid Transit System Link and other supporting facilities.

“We are also looking at attracting investors in petro-chemical, chemicals, data centres and medical equipment, which Johor already has the existing ecosystem for,” said Lee, who accompanied Onn Hafiz for an official visit to Qatar to secure investments.

Yesterday, Prime Minister Datuk Seri Anwar Ibrahim and his Singapore counterpart Lawrence Wong witnessed the exchange of the joint agreement, which took place during the 11th Malaysia-singapore Leaders’ Retreat in Putrajaya.

The highly-anticipated exchange comes close to a year after a memorandum of understanding was signed by the two countries on Jan 11, 2024 in a historic move to jointly develop the JS-SEZ.

Source: The Star

Special economic zone set to elevate Johor

The Johor-Singapore Special Economic Zone (JS-SEZ) exemplifies Malaysia’s commitment to regional integration, particularly as the country assumes the ASEAN Chairmanship this year, said Transport Minister Anthony Loke.

With Malaysia’s ASEAN Chairmanship 2025 theme of “Inclusivity and Sustainability”, he emphasised that Malaysia is dedicated to strengthening regional ties.

“ASEAN’s collective gross domestic product is projected to surpass US$6 trillion (US$1=RM4.48) by 2030, and Malaysia is determined to play a leading role in this growth story.

“Projects like the JS-SEZ exemplify our commitment to regional integration. By fostering innovation and attracting investment, the JS-SEZ is set to become a beacon of economic collaboration,” he said in his keynote address at the CGS International Securities Malaysia Sdn Bhd’s 17th Annual Malaysia Corporate Day here, today.

Similarly, he noted that the ASEAN Highway Network and Trans-ASEAN Gas Pipeline initiatives underscore the country’s commitment to enhancing connectivity and energy security across the region.

“I think one advantage we have in this region is that we have good neighbours around us,” he said.

“This is our natural advantage. There are not many parts of the world where people can live harmoniously and peacefully. Even though we may be competing with ourselves, we are always looking for ways to collaborate and work together,” he added.

Loke quoted Malaysia’s Prime Minister Datuk Seri Anwar Ibrahim and Singapore’s Prime Minister Lawrence Wong from their joint press conference earlier this morning, where they emphasised that the race is no longer between ASEAN countries but between the rest of the world.

“We must strengthen ourselves regionally and bolster our position within ASEAN while increasing business within ASEAN. This is a major growth region, and Malaysia is best positioned to lead this effort, especially as we have just assumed the ASEAN chairmanship this year,” he said.

“I’m confident that our Prime Minister and the rest of the government will do their best to elevate Malaysia’s profile and play a leadership role in enhancing regional cooperation and collaboration,” he said.

During the same event, at a fireside chat session, Loke highlighted that the logistics sector is one of the key pillars of the JS-SEZ, aimed at attracting more investment and encouraging the relocation of logistics operations from Singapore to Johor, noting that it makes more sense to have bigger warehouses in Johor.

“Singapore still holds certain advantages with its airports, ports, and trading infrastructure.

“However, I believe many back-end operations can be relocated to Johor. We hope to work with operators, port authorities, and others to provide more space and land for this purpose,” he added.

Source: Bernama

Malaysia ASEAN: JS-SEZ exemplifies Malaysia’s commitment to regional integration – Loke

The Johor-Singapore Special Economic Zone (JS-SEZ) is set to strengthen economic ties between Malaysia and Singapore while attracting diverse investment opportunities, according to industry experts.

They believe the economic zone is well-positioned to meet the government’s target of securing 100 projects within its first decade, with Singapore playing a key role.

Dr. Azmi Hassan, senior fellow at the Nusantara Academy for Strategic Research, highlighted the significance of the three newly designated flagship zones in boosting the SEZ’s potential, particularly in the specialised sectors assigned to each zone.

“These three areas have specialities that can facilitate the SEZ. The government’s aim to achieve 100 projects also will not be an issue because Johor is not working alone. Singapore has proven they can provide for the sectors needed to be expanded within the SEZ,” he told Business Times. 

Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid said Malaysia needs a spark that would attract foreign and domestic investors amid uncertainties in the global economy and market.

He said the JS-SEZ would clearly pave the way for more infrastructure investment such as logistics, utilities, and talent pool. 

It will have spillover effects, as the potential business centres and manufacturing hub will lead to township development, attracting a talent pool that would need to reside in close proximity to or within these areas.

“Furthermore, geographically, historically, and culturally, I think it is high time Malaysia and Singapore should forge closer ties when it comes to investment and trade. 

“The next hurdle would be how both countries can speed up the implementation knowing that there would be challenges from the regulatory and bureaucracy front,” he added.

Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) president Datuk Ng Yih Pyng said effective planning, monitoring, coordination, and enhanced communication of both countries are critical as it affects the performance and deliverables of the zone as well as the trust of both countries. 

He stated that the identified projects must be implementable and doable within a clear timeline and the resources needed. 

“The effective implementation of the SEZ will deepen the economic partnership between Malaysia and Singapore, spurring cooperation and significant investment opportunities in diverse sectors and enhancing regional connectivity,” he said.

Ng also urged domestic SMEs to explore the numerous opportunities, finding suitable partners to invest in the zone. 

“More importantly, the government must ensure that domestic industries will benefit from foreign direct investment in the SEZ through technology transfer, sharing of expertise, and creation of job opportunities for local people,” he added.

OCBC Bank (Malaysia) Bhd chief executive officer Tan Chor Sen said the JS-SEZ has the potential to be a magnet for international capital through the various initiatives that have been announced.

These include the passport-free QR code clearance at Singapore’s land checkpoints with Malaysia, the Invest Malaysia Facilitation Centre–Johor (IMFC-J), technical and vocational education and training (TVET)-related initiatives, and streamlined customs procedures for land intermodal transhipments. 

“We are particularly excited about the move to explore enhancing market access of financial institutions in both countries and the tax incentive packages,” Tan said.

Malaysia and Singapore today kicked off the much-awaited JS-SEZ with the ambitious target of attracting 100 projects in 10 years.

The JS-SEZ now covers the Iskandar development region, Forest City, Pengerang Integrated Petroleum Complex, and Desaru, a land area of 357,128 hectares.

The Iskandar development region also covers Johor Bahru City Centre, Iskandar Puteri, Tanjung Pelepas-Tanjung Bin, Pasir Gudang, Senai-Skudai, and Sedenak. 

It also covers new priority sectors such as aerospace, electrical and electronics, chemical, medical devices, and pharmaceuticals. These are in addition to other sectors such as business services, the digital economy, healthcare, manufacturing, tourism, education, logistics, energy, and food security. 

“Both countries are committed to promoting the expansion of 50 projects for the first five years and accumulating 100 projects in the first 10 years. What we want to do is really populate the SEZ with the right portfolio and investors,” Economy Minister Rafizi Ramli told media and analysts in a briefing last week.

“I feel that the first wave of takers in the next five years are those global companies looking to manage their geopolitical risks. We have an advantage because of ASEAN’s viability as a major economy in the next 15 years”.

Rafizi also said that energy transition companies will be the main targets for the economic zone because of the growth in data centres.

Source: NST

JS-SEZ will strengthen economic ties between Malaysia and Singapore: experts

Singapore and Malaysia are looking to expand cooperation into areas such as electricity trading and renewable energy cooperation.

This is on top of existing infrastructure projects such as the Johor-Singapore Special Economic Zone (JS-SEZ) for business and investment, and the Johor Baru-Singapore Rapid Transit System (RTS) Link, which is slated to start operations by end-2026.

Speaking to Singapore media on Tuesday (Jan 7) at the end of the 11th Malaysia-Singapore Leaders’ Retreat in Putrajaya, Malaysia, Prime Minister Lawrence Wong said one major project in the works is the import of electricity from Sarawak via undersea cables.

This would build on positive momentum from the increase in capacity of the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project.

The inaugural flow from Malaysia to Singapore began in September 2024, with almost 8,000 megawatt-hour (MWh) of electricity being traded to date under phase two of the project.

Besides the JS-SEZ agreement, six memorandums of understanding and a letter of intent which were exchanged on Jan 7 at the Leaders’ Retreat, where Wong was hosted by Malaysian Prime Minister Anwar Ibrahim.

Areas covered included carbon storage and capture and carbon credits cooperation.

The annual retreat is a platform for leaders of both countries to set the overall direction for bilateral cooperation.

The RTS Link is also making good progress and is on track for completion, PM Wong said.

When ready, it can carry up to 10,000 people an hour in each direction between Bukit Chagar and Woodlands North, easing congestion on the Causeway.

PM Wong was asked about the RTS Link’s potential impact on Singapore businesses.

He said he has heard concerns, especially from businesses in the Woodlands area, that more Singaporeans will shop in Johor when the RTS is operational.

But disruption to retail businesses is already happening, with competition either physically or online, he said.

“It’s too early to tell how it will impact business because perhaps it will mean more Singaporeans going over to Johor for shopping, but it can also mean… more Malaysians coming to Singapore,” he said, noting that a lot of the businesses in the north already cater to that Malaysian traffic, particularly day-trippers coming into Singapore to work.

“So what’s clear is, whether we have the RTS or not, the nature of business is constantly changing,” he said.

The Government will continue to support heartland businesses and encourage them to think of new business models and offerings to enlarge their market, he said, adding that they can also expand online and attract new customers.

“There will always be new models, new competition, new disruptions, and businesses have to adapt to all of that… You have to adapt, you have to adjust, you have to update your offerings in order to appeal to new customers.”

Source: The Straits Times/ANN/The Star

Electricity trading, renewable energy among new areas of Singapore-Malaysia cooperation

Penang has achieved several significant milestones in 2024, showcasing strong economic growth and social development, including attracting investments totalling RM31.38 billion.

Chief Minister Chow Kon Yeow said these investments are expected to create over 6,600 job opportunities, particularly in the high-value manufacturing sector, advanced services, and modern agriculture.

“Additionally, Penang recorded the third-highest compliance rate for Employees Provident Fund contributions nationwide at 99.15 per cent, and solidified its position as a leading medical tourism hub in Southeast Asia,“ Chow said during his address at the Public Service Members Assembly at Dewan Seri Pinang today.

As of Dec 2, 2024, he shared that 306 projects under the 12th Malaysia Plan (12MP) have been approved for Penang, including 246 new initiatives under the 4th Rolling Plan (RP4) and 60 continuation projects, with a total cost of RM28.4 billion.

Chow noted that RM1.35 billion was allocated for 2024, of which RM1.11 billion, or 81.76 per cent, has been utilised.

Under the 5th Rolling Plan (RP5) of the 12MP, 10 priority projects have been listed in the Penang State Wishlist Module within the MyProjek System; of these, he said eight projects have been accepted for consideration by the Ministry of Economy.

“I hope that our Federal ‘extended family’ will prioritise Penang’s proposed projects, as they are significant, including road construction, coastal erosion prevention structures, health clinic development, and other essential initiatives,“ he said.

On the ASEAN-Malaysia Chairmanship 2025, Chow highlighted Penang’s pivotal role in hosting regional programmes, aligning with Malaysia’s aspirations and ASEAN’s collective goals.

“Penang, also known as the Pearl of the Orient, will host several key ASEAN meetings, cultural events, and high-impact economic and tourism initiatives,” he said.

Malaysia officially assumes the ASEAN Chairmanship on Jan 1, 2025, with the theme “Inclusivity and Sustainability,“ symbolising the nation’s vision for a united and prosperous ASEAN region.

Source: Bernama

Penang secures RM31.38 billion in investments for 2024 – Chow

Malaysia and Singapore kicked off the much-awaited Johor-Singapore Special Economic Zone (JS-SEZ) today. Here’s what you need to know:

Malaysia and Singapore signed a memorandum of understanding on January 11, 2024 to work on the plans for the JS-SEZ.

Almost a year later, Malaysia’s Minister of Economy, Rafizi Ramli and Singapore’s Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong signed a agreement on the economic zone on Jan 6, 2025.

The agreement is not final yet and is expected to be made official by the third quarter of 2025.

The Malaysian and Singapore governments have committed to attracting 100 projects in 10 years to the economic zone, with the intent of creating 20,000 skilled job opportunities in the JS-SEZ.

Malaysia and Singapore will promote and facilitate investments in 11 economic sectors from third countries and Singapore companies expanding into the JS-SEZ.

Facilitate development of renewable energy (RE) projects to accelerate RE trading between Malaysia and Singapore.

The two countries will also cooperate on movement of people and goods; talent development and ease of doing business.

The economic zone which spans 357,128 hectares, covers the Iskandar development region and three additional areas.

JS-SEZ will be made up of Johor Bahru City Centre, Iskandar Puteri, Tanjung Pelepas-Tanjung Bin, Pasir Gudang, Senai-Skudai and Sedenak, Forest City, Pengerang Integrated Petroleum Complex and Desaru.

Known as flagship zones, each areas will champion projects from different vital sectors of the economy.

JB City Centre will be pushed as a zone for business services, digital economy and health.

Iskandar Puteri will focus on manufacturing, business services, digital economy, education, health and tourism.

Tg Pelepas-Tg Bin  and Pasir Gudang and PIPC will be the zones for manufacturing, energy and logistics.

Senai-Skudai for manufacturing, digital economy, education, logistics and tourism.

Forest City will focus on financial services as it serves as a special financial zone.

Sedenak will house projects for the most sectors – manufacturing, business services, digital economy, education, energy, food security, health, logistics and tourism.

While Desaru will run education, food security, health and tourism.

Besides the sectors mentioned, the JS-SEZ also covers new priority sectors such as aerospace, electrical and electronics, chemical, medical devices and pharmaceuticals.

Economy Minister Rafizi Ramli said both countries’ approach with regards to the incentive structure will be driven by “sheer potential” of the JS-SEZ in terms of geographical location.

Singapore and Malaysia will design the fiscal incentives separately.

Among the incentives on offer by Malaysia include special corporate tax and personal income tax rate for companies that undertake new investments in high growth, and high value-added activities within the JS-SEZ.

The Malaysian government will establish a fund for purposes of infrastructure support for the economic zone.

The Singapore government will design funding support to facilitate the expansion of Singaporean companies in the economic zone.

Malaysia will establish the Invest Malaysia Facilitation Centre – Johor (IMFC-J) to act as a one-stop centre in facilitating investments and businesses in the JS-SEZ.

Source: NST

Everything you need to know about the Johor-Singapore Special Economic Zone

Malaysia and Singapore today kicked off the much-awaited Johor-Singapore Special Economic Zone (JS-SEZ) with the ambitious target of attracting 100 projects in 10 years.

The JS-SEZ now covers the Iskandar development region, Forest City, Pengerang Integrated Petroleum Complex and Desaru, a land area of 357,128 hectares.

The Iskandar development region also covers Johor Bahru City Centre, Iskandar Puteri, Tanjung Pelepas-Tanjung Bin, Pasir Gudang, Senai-Skudai and Sedenak. 

It also covers new priority sectors such as aerospace, electrical and electronics, chemical, medical devices and pharmaceuticals. These are in addition to other sectors such as business services, digital economy, healthcare, manufacturing, tourism, education, logistics, energy and food security. 

“Both countries are committed to promoting the expansion of 50 projects for the first five years and accumulating 100 projects in the first 10 years. What we want to do is really populate the SEZ with the right portfolio and investors,” Economy Minister Rafizi Ramli told media and analysts in a briefing last week.

“I feel that the first wave of takers in the next five years are those global companies looking to manage their geopolitical risks. We have an advantage because of Asean’s viability as a major economy in the next 15 years,”.

Rafizi also said that energy transition companies will be the main targets for the economic zone, because of the growth in data centres.

The Malaysian government will establish a fund for purposes of infrastructure support while the Singapore government will design funding support to facilitate the expansion of Singaporean companies in the economic zone.

It will also look into the potential of twinning operations of multinational companies in Singapore and JS-SEZ.

“The government expects more people to move to Johor. It has yet to make any decisions but discussions on commitments to upgrade Johor’s public transport have taken place,” said Rafizi.

Pro business policies and incentives

Rafizi said that Malaysia’s pro business policies and incentives will drive business growth in the economic zone. There will be special corporate tax and personal income tax rate for companies that undertake new investments in high growth and high value-added activities within the JS-SEZ.

The special personal income tax rate will be announced by the Finance Ministry at a later date.

Other incentives include for relocating to Malaysia and green technology, Global Services Hub incentive and Pioneer Status and Investment Tax Allowance. On the quantum of investment expected, the minister said the government will only be able to identify that after the agreement was signed.

“After the agreement is signed, we will be able to identify more notes and clusters that will allow the government to work closely with investors to prepare those areas to make it palatable for them to move in. Most probably this will function more on a project to project basis,” he added.

Source: NST

100 projects in 10 years: Johor-Singapore Special Economic Zone kicks off