Johor Bahru: The impact of the Johor-Singapore Special Economic Zone (JS-SEZ) is already being felt, with Johor recording RM27.4 billion in foreign direct investment (FDI) in the first quarter of this year.

According to BERNAMA News Agency, Johor Menteri Besar Datuk Onn Hafiz Ghazi stated that this marked a substantial increase from the RM4 billion achieved in the same period last year. He highlighted the impressive growth, noting that compared to the first quarter of 2024, there has been an RM24 billion increment within just one year, indicating the beginning of a promising trend.

The federal government has allocated approximately RM5 million to upgrade infrastructure within the SEZ area, which includes Desaru Coast, to meet world-class standards. Initiatives include the widening of highways such as the North-South Expressway and the upgrading of the Senai-Desaru Expressway. The Rapid Transit System is also underway and is anticipated to be operational by 2027.

Onn Hafiz shared these insights during a signing ceremony for a new hotel management agreement and a press conference announcing the appointment of a new operator for Desaru Coast. The transition of Desaru Coast’s flagship luxury resort from One and Only to Mandarin Oriental is expected to enhance the destination’s appeal to affluent travellers from Singapore and the region.

The JS-SEZ represents a significant bilateral initiative to bolster economic integration, connectivity, and cooperation between Malaysia and Singapore, particularly through Johor. A Memorandum of Understanding was signed in January 2024, followed by a formal Agreement of Cooperation in January 2025.

To ensure the SEZ’s success, the government is also prioritizing human capital development through the Johor Talent Development Council. Onn Hafiz emphasized the collaboration with the hotel industry to provide training that aligns with industry standards, aiming to positively impact the local workforce. Notably, 70 per cent of the 1,500 employees in Desaru Coast are Johoreans.