Singapore-Malaysia border economic zone a ‘potential game-changer’ but hurdles abound: investors
- Logistical challenges must be addressed for the Johor-Singapore Special Economic Zone to reach its full potential, business leaders say
The planned Johor-Singapore Special Economic Zone (JS-SEZ) is more likely to succeed than previous joint ventures between the city state and Malaysia due to stronger bilateral government support and a desire by businesses to “internationalise” closer to home, proponents of the project say.
However, investors say the JS-SEZ will need to address serious logistical challenges, such as congested border crossings and lengthy permit processes, to reach its full potential.
“This isn’t just another project. It’s a potential game-changer for both Malaysia and Singapore,” Teo Siong Seng, chairman of JS-SEZ Singapore Business Working Group, said at an event organised by the Singapore Business Federation (SBF) on Thursday.
“There are many SEZs in the world … the difference here is that we are very close together. We have been neighbours for a long, long time. We have got the willingness and the commitment of the political leaders to make this work.”
After signing an MOU on the SEZ in January, both countries are tipped to ink the deal later this year at their annual bilateral Leaders’ Retreat.
Investors were sanguine about the project but said various hurdles still needed to be overcome.
