Johor bahru: The Johor-Singapore Special Economic Zone (JS-SEZ) presents a scalable development framework that could reshape cross-border logistics and regional economic cooperation, according to Khazanah Research Institute chairman Dr. Nungsari Ahmad Radhi. The initiative aims for seamless integration of goods and services between Johor and Singapore, potentially serving as a template for other regional collaborations.
According to BERNAMA News Agency, Dr. Nungsari highlighted the bilateral development framework's potential to transform regional development strategies, particularly through direct cooperation between Johor and Singapore. He emphasized the importance of a limited 'customs union' to stimulate growth, leveraging the economic strengths of both regions. This model could be adapted for other border areas, such as Kedah, Perlis, and Kelantan with Thailand, and Sabah and Sarawak with Indonesia.
JS-SEZ has already recorded significant achievements, with RM91.1 billion in approved investments by the third quarter of 2025. This surpasses investments in other states, such as Selangor, the Federal Territory, and Penang. Dr. Nungsari noted that the formalization of Singapore's involvement in the Iskandar region has substantially bolstered its development.
The integration of Tanjung Pelepas Port with Singapore Port is projected to create one of the world's largest maritime hubs. Additionally, Senai International Airport and Pengerang could enhance their roles in logistics and crude oil processing, respectively, through closer bilateral cooperation. This integrated logistics development is expected to provide economic benefits to both countries.
Economy Minister Akmal Nasrullah Mohd Nasir previously stated that the JS-SEZ, transitioning from planning to implementation, aims to merge Johor's resources with Singapore's capital and technology to attract high-quality investments. Barjoyai Bardai from Malaysia University of Science and Technology noted the SEZ's potential to enhance investment sentiment, particularly in high-value industries.
Barjoyai also emphasized the initiative's role in reactivating the economic value of existing assets, such as Forest City, within the Johor-Singapore ecosystem. He stressed the importance of structural improvements to continuously optimize large investments, alongside clear policies, efficient governance, and the attraction of quality investments to generate local economic benefits.