My Take | Can the Johor-Singapore SEZ be a flag-bearer for Southeast Asia’s economic clout?
The SEZ aims to tap new growth areas alongside priority industries to make it the region of choice for businesses, but challenges remain
The excitement was palpable on Monday, as the governments of Malaysia and Singapore signed an almost unprecedented deal to formally set up the Johor-Singapore Special Economic Zone (JS-SEZ) after over a year of negotiations.
The strong interest in the project is understandable. It is a massive joint-undertaking, covering a land mass of more than 3,500 sq km (1,400 square miles) in Johor’s southern and eastern regions – more than four times the size of Singapore.
Equally, if not more importantly, is the fact that the JS-SEZ is backed by the commitment of not one, but two countries seeking to develop a new growth area that they hope will become a flag-bearer of Southeast Asia’s economic potential.
Like most SEZs around the world, a key focal point of the Johor-Singapore zone will be manufacturing, which is a no-brainer for countries seeking large-scale investments that also provide ample job opportunities for the local populace.
But unlike many other SEZs, the JS-SEZ has far broader ambitions.
Beyond just setting up factories, Malaysia and Singapore want to tap new growth areas alongside priority industries that they hope would make the JS-SEZ the region of choice to not only do future-proof business, but also to live and play.
