Johor bahru: Johor is on track to sustain last year’s robust economic growth, aiming for a 6.4 percent increase in its gross domestic product (GDP) this year, mirroring its previous performance. Growth projections for 2026 are expected to fluctuate between 4.8 and 6.8 percent.

According to BERNAMA News Agency, Datuk Seri Hasni Mohammad, Johor State Economic and Investment Advisor, expressed confidence in maintaining this economic momentum despite global uncertainties. He attributed this optimism to the economic advantages stemming from the Johor-Singapore Special Economic Zone (JS-SEZ).

Hasni noted that the JS-SEZ has been instrumental in attracting investments and drawing foreign companies and data centres, thereby bolstering the industrial ecosystem, generating employment, and enhancing overall commercial activities. He revealed that for 2025, there is an expectation to revise the GDP estimate to 6.4 percent from an initial projection of 4.8 percent, with a slightly lower growth anticipated for 2026.

He emphasized that Johor’s economic progress generally aligns with national GDP trends. However, current initiatives and investment momentum may allow the state to surpass the national average. He highlighted that the JS-SEZ remains a significant catalyst for attracting both domestic and foreign investments.

Since the JS-SEZ framework was signed earlier this year, the Iskandar Malaysia Facilitation Centre has received more than 900 enquiries, including 122 from Singapore, with 44 companies showing concrete investment interest as of October 2025. These investments are expected to create jobs, elevate salary levels, and reinforce Johor’s industrial ecosystem, especially in sectors like data centres and artificial intelligence.

Hasni also addressed concerns that the JS-SEZ might benefit Singaporean companies more than Malaysian businesses. He clarified that more than half of the Singapore firms engaged by Enterprise Singapore were encouraged to invest in Johor, thereby directly benefiting the state through job creation, increased income opportunities, and elevated state revenue.

He further explained that investments from Singaporean firms have proven beneficial for Johoreans, as they have resulted in job creation and boosted state revenue. To accommodate rising commercial activities and future mobility needs, Johor is undertaking significant road upgrades, including expanding key stretches of the North-South Highway from four lanes to six lanes to alleviate congestion and ensure seamless connectivity.

While public transport improvements are underway, enhancing highway capacity is deemed essential for supporting both current and future economic activities. Similar infrastructure enhancements are also being implemented toward the eastern region of the state.