Singaporean SMEs Show Strong Interest in JS-SEZ
Malaysia’s High Commissioner to Singapore Datuk Dr Azfar Mohamad Mustafar pointed out that there is strong interest among Singaporean small and medium-sized enterprises (SMEs) in the Johor-Singapore Special Economic Zone (JS-SEZ), with many of them exploring relocation opportunities.
Azfar said that the interest has remained robust despite uncertainties arising from recent US tariff volatilities and it is also expected to drive demand for local talent in Malaysia.
“I think many investors are looking for a place to further invest without having any problems and SMEs in Singapore are realising that the republic has become a more expensive place to operate, so they would need to find a place to continue being competitive,” he explained.
Azfar also added that Johor’s close proximity to Singapore and lower operational costs make it an attractive destination for SMEs looking to relocate or expand operations and that Malaysia’s neutral stance on US-China trade tensions may further encourage businesses to view the JS-SEZ as a viable alternative.
“My officers receive inquiries daily about the JS-SEZ. We at the High Commission in Singapore have been actively providing information to interested parties,” he added.
Spanning 11 key economic sectors, JS-SEZ provides special incentives for industries such as logistics, manufacturing, financial services, business services, digital economy, tourism, food security, education, health, energy and the green economy.
Additionally, Johor Investment, Trade, Consumer Affairs and Human Resources committee chairman Lee Ting Han pointed out that foreign direct investment (FDI) remained the primary source of new investment in Johor, accounting for about 80% of the RM23 billion in proposed investments recorded in April 2025.
According to Lee, the trend followed a strong first-quarter performance, during which FDI made up nearly 90% of the RM27.4 billion in new investments secured by the state, and that nearly all the investments are in the JS-SEZ.
“The main sources of investment in Johor at the moment are certainly Singapore, China and Japan,” he said, adding that the state government is also working to boost domestic investment by encouraging partnerships between local companies and multinational corporations (MNCs).
He also encouraged any local companies that are interested could be matched with MNCs entering Johor to further strengthen domestic participation.
