The JS-SEZ marks a shift towards deep cross-border collaboration between Johor and Singapore, emphasising shared, sustainable economic development.
Johor is prioritising ease of doing business through talent development, infrastructure upgrades, and streamlined immigration processes to attract and retain investors.
UOB's Green Lane initiative fast-tracks UOB clients’ entry into the JS-SEZ, enabling quicker deployment of high-value investments like battery manufacturer Gold Peak’s US$150M facility.
When Malaysia and Singapore officially signed the Johor-Singapore Special Economic Zone (JS-SEZ) agreement in January 2025, it was more than a bilateral handshake. It marked the beginning of a new horizon for both countries.
As one of the organisers of the Johor-Singapore Business Mission 2025 held earlier this year, I witnessed firsthand the energy and ambition that now surrounds the JS-SEZ. The event, co-hosted by UOB, Singapore Business Federation (SBF), RSM and Rajah & Tann, brought together key stakeholders and investors to explore the zone’s potential. With Johor’s Chief Minister, Dato’ Onn Hafiz bin Ghazi, as guest of honour, the message was clear: the JS-SEZ is moving from ink to implementation.
Yet one question persisted: what makes the JS-SEZ different from the other special economic zones that dot the region?
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Johor and Singapore: Mindset shift
According to those who spoke at the Business Mission, the answer lies not just in geography or trade incentives, but in mindset.
The economic relationship between Johor and Singapore has long been defined by synergy; Singapore as a global business and financial hub, while Johor offers cost-competitive land and labour.
The JS-SEZ reflects a shift in how the two states engage, moving towards a closely collaborative approach built on a shared vision for sustainable growth.
During his dialogue with Ng Wei Wei, CEO of UOB Malaysia, Dato’ Onn emphasised the importance of mutual support between both parties, a reflection of the collaborative mindset that underpins sustainable growth. This agreement is pragmatic, grounded in the belief that economic growth is not a zero-sum game, but a shared opportunity where everyone stands to gain.
Ease of doing business still the priority
Rhetoric aside, the JS-SEZ’s success depends on reducing friction for businesses in Johor. At the event, Dato’ Onn emphasised that improving the ease of doing business remains a top priority and outlined key initiatives.
For one, the newly established Johor Talent Development Council aims to build a reliable pipeline of highly skilled workers among Malaysia’s youths. With a starting salary of RM4,000 for diploma holders and RM5,000 for degree holders—much higher than the average salary of around RM2,500 in Johor—this could be a significant step in circumventing the outflow of local talent to neighbouring Singapore.
Another initiative is the data centre technician programme, co-designed by multinational and local educational institutions. The council’s recently launched Data Centre Academy is backed by Microsoft and Singapore’s Environmental Professional In-Training Institute.
On the infrastructure front, the long-awaited Rapid Transit System (RTS) Link between Johor Bahru and Singapore is progressing steadily, with completion slated for December 2026.
The Johor state government is actively upgrading its infrastructure, including the ongoing widening of major highways such as the route from Johor to capital city Kuala Lumpur. In parallel, it has begun implementing QR code-based immigration clearance systems, with trials for motorcyclists and bus passengers already underway and expansion to car passengers expected in 2025.
Addressing the perennial traffic congestion, Dato’ Onn shared that efforts are underway in collaboration with Public Private Partnership Unit (UKAS) and the Ministry of Transport Malaysia to improve road infrastructure and optimise traffic flow.
Every initiative points to a single objective: smoother, faster, smarter border experiences.
By tackling bureaucracy and bottlenecks head-on, Johor is sending a clear message that it is open for business.
Positioning Johor for the future
In the last decade, Malaysia has been one of the quiet beneficiaries of global supply chain diversification, and Johor has emerged as a prime destination for new investments.
With a record RM2.1 billion in revenue collected in 2024, Johor is not just making headlines, it is making progress. Looking ahead, Johor is laying the foundation to become a smart city by 2030, with strategic investments in artificial intelligence (AI).
Dato’ Onn also highlighted the state’s ambition to transform into a smart city, driven by digital transformation and smart governance initiatives.
In 2024, the Johor state government installed 500 AI-powered CCTVs across key locations—one of several milestones in its smart city journey.
Efforts are also underway to integrate various systems into the Johor Bahru Integrated Operations Command Centre (JBIOCC). This includes a geographic information system (GIS), flood monitoring, and a complaints platform.
These initiatives reflect Johor’s clear intent to become a more efficient, connected, and digitally driven state.
Advancing growth with Green Lane
At UOB, we are proud to support the transformation of the JS-SEZ through our strategic partnership with Invest Johor. This collaboration led to the launch of the Green Lane initiative, a Memorandum of Understanding (MOU) signed at the 2024 ASEAN Conference. This initiative fast-tracks UOB customers’ entry into the JS-SEZ, reducing bureaucratic delays and accelerating high-value investments.
One such investment is from Gold Peak Technology Group, which plans to invest US$150 million in a nickel-based manufacturing and R&D centre. This facility will support the global surge in demand for power, driven by AI and data centre growth.
At the presentation of Gold Peak's Letter of Intent to invest in the Johor-Singapore Special Economic Zone: (from left) Mr Sam Cheong, Head of Group Foreign Direct Investment Advisory, UOB; Mr Lee Ting Han, Johor's Investment, Trade, Consumer Affairs, and Human Resources Committee chairman; Tuan Haji Natazha Harris, CEO of Invest Johor; YAB Dato' Onn Hafiz bin Ghazi, Menteri Besar of Johor; Mr Michael Lam, Executive Director and Managing Director of Gold Peak; Ms Ng Wei Wei, Chief Executive Officer of UOB Malaysia; and Mr Victor Lo, Chairman and Chief Executive of Gold Peak.
GP is one of the world’s largest battery manufacturers and produces six billion batteries annually.
The facility, a nickel-based manufacturing and R&D centre, will begin pilot production in 2025, ramping up to full-scale production by 2028. This is in addition to its three existing battery manufacturing facilities in Johor.
The timing could not be better, as demand for power will continue to surge with the rise of AI-based technologies globally and booming data centre demand in Johor.
For businesses ready to collaborate across borders, the JS-SEZ may be a fortuitous launchpad to ASEAN’s next big story.
About the author
Jimmy Koh
UOB
Jimmy Koh currently heads the network partnerships and strategic marketing outfit at UOB’s FDI Advisory. As a managing director, one of his key roles is to identify and establish partnerships with local and overseas ecosystem partners, while providing direction and editorial guidance that can help profile FDI initiatives in Southeast Asia.
Jimmy has more than 20 years in banking and global markets research and business experience, having previously led UOB’s external and internal communications teams, as well as the Group’s CSR and Art Programme initiatives.
