Data Centres Electronics Among Sectors Benefit Johor Singapore Special Economic Zone Dbs
Singapore’s proposal to create a special economic zone with Johor, Malaysia is expected to benefit several industries, including data centres, electronics, and renewable energy, according to research by DBS. The zone, which aims to facilitate cross-border economic activities between the two states, was first announced last October and is expected to be finalized by December.
The proposed zone will span six districts in Malaysia’s Iskandar region, covering a total area of 3,505 sq km. Specific details on the targeted industries and incentives are still being explored, but DBS economist Chua Han Teng believes the data centre sector will be a prime beneficiary. Johor’s data centres have seen significant growth in recent years, making it the fastest-growing data centre hub in Southeast Asia.
Johor’s electrical and electronics sector is also expected to benefit from the JS-SEZ, as it has been identified as a priority industry in the state’s economic master plan. The renewable energy sector is also likely to see positive effects from the zone, as collaborations between Singapore and Malaysia continue to deepen.
With increased activity in these industries, there is expected to be a surge in demand for industrial properties in Johor. The completion of the Johor Bahru-Singapore Rapid Transit System in 2026 will also significantly improve connectivity between the two cities, making travel more efficient and seamless.
The JS-SEZ offers the opportunity to leverage the strengths of both Singapore and Johor. Johor’s abundance of land and favorable demographics make it an attractive option for businesses, while Singapore’s capabilities as a financial center and business hub provide a competitive advantage.
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A survey by the Singapore Business Federation found that many Singaporean businesses are already operating in Johor and see it as an attractive location. However, the success of the JS-SEZ will also depend on its ability to address current challenges faced by businesses, such as manpower issues and obstacles in importing and exporting goods.
To improve cross-border movements, businesses have suggested initiatives such as special immigration lanes and automated clearance. The fragmented investment process in Malaysia has also been identified as a potential obstacle, but steps are being taken to address this through the establishment of a one-stop centre for investment-related matters.
Overall, the proposed JS-SEZ has the potential to bring significant economic benefits to both Singapore and Johor, but addressing current challenges will be necessary for its success.
