Johor: The Johor-Singapore Special Economic Zone (JS-SEZ) is expected to propel Johor’s share of national gross domestic product (GDP) to exceed 12 percent by 2030, should their investments materialize according to plan, said CIMB Investment Bank Bhd.
According to BERNAMA News Agency, the investment bank noted that JS-SEZ could contribute RM117.1 billion to the country’s GDP by 2030, representing an average annual rise of RM19.5 billion. This equates to a contribution of 0.6-1.0 percent of GDP per year from 2025 to 2030. Achieving this would necessitate a compound annual growth rate (CAGR) of around 8.4 percent per annum, more than double its 3.8 percent per annum growth during 2016-2023.
The investment bank highlighted that this estimate assumes steady growth with a national GDP growth rate of 6.0 percent. Key growth drivers include rising domestic and foreign investments in sectors like logistics, healthcare, tourism, and the digital economy. Enhanced labor mobility, improved cross-border trade facilitation, and major infrastructure upgrades also play significant roles.
Johor’s investment momentum has surged in the first quarter of 2025, securing a total of RM30.1 billion in approved investments, driven by JS-SEZ initiatives and pro-business reforms. Singapore emerged as the largest investor in the first quarter of 2025, with 65 projects worth RM28.3 billion in approved foreign direct investments (FDI), ahead of the United States and China.
These investments are expected to generate 33,000 new jobs, putting Johor on track to surpass its 2024 approved investments record of RM48.5 billion. Johor Menteri Besar Datuk Onn Hafiz Ghazi is now targeting RM60 billion-RM100 billion in approved investments for 2025.
According to CIMB Investment, investors’ focus will be on key zones like Forest City and Sedenak, led by data centers, electrical and electronics, electric vehicles, and the logistics sectors. The JS-SEZ blueprint clearly outlines sector priorities to designated zones, ensuring focused development and ecosystem clustering.
The investment bank added that the JS-SEZ is also expected to strengthen the Johor-Singapore economic corridor, enabling a twin-city model similar to Shenzhen-Hong Kong. Johor offers scale, land, and labor, while Singapore brings capital, finance, and global networks. Their integration creates a compelling, cost-efficient destination for global investors, with seamless operations across both jurisdictions.