Kuala lumpur: Maybank and the Singapore Manufacturing Federation (SMF) have formalized a strategic partnership through a memorandum of understanding (MoU) to enhance access to the Johor-Singapore Special Economic Zone (JS-SEZ). This collaboration aims to bolster the development of the JS-SEZ as a significant economic initiative benefiting both countries and the broader ASEAN region.
According to BERNAMA News Agency, the MoU establishes a framework that connects SMF's ecosystem of local and multinational manufacturers and their vendor partners with Maybank's regional banking expertise. This partnership is designed to facilitate high-quality investment and expansion opportunities across the Singapore-Malaysia and Singapore-ASEAN corridors, with a particular focus on the JS-SEZ.
Maybank, in a joint statement, emphasized its commitment to supporting capacity-building initiatives that incorporate sustainability and environmental, social, and governance (ESG) focused supply chain practices. The bank plans to provide customized banking solutions, including sustainable finance, cash management, payments, trade and supply chain financing, and cross-border financing.
The bank is actively facilitating approximately RM22 billion in financing and investment interests, supporting digital infrastructure, manufacturing, small and medium enterprises (SMEs), and businesses pursuing regional opportunities. It has also been assisting businesses exploring opportunities arising from the JS-SEZ through its regional banking network and cross-border capabilities.
Maybank stated, "Through this collaboration, we will leverage our presence across 10 ASEAN countries to provide SMF's network of over 5,000 members with knowledge-sharing, business networking, and capacity-building initiatives as they expand in Singapore and beyond."
The signing of the MoU, witnessed by Johor Menteri Besar Datuk Onn Hafiz Ghazi, occurred during the 'Dialogue with the Johor Chief Minister'. This event, co-organized by Maybank and SMF in collaboration with the Malaysian Investment Development Authority (MIDA), brought together Maybank's clients and SMF members in Singapore to mark the beginning of their partnership.
During the dialogue, Onn Hafiz provided updates on the progress and plans for the JS-SEZ Blueprint and Masterplan, highlighting key priorities to promote advanced manufacturing. He noted that the JS-SEZ had attracted a record RM126.9 billion (S$40 billion) in foreign direct investments since its formalization.
Onn Hafiz said, "Strategic partnerships and constructive dialogue between the public and private sectors like this with Maybank and SMF stakeholders will be critical in translating this momentum into long-term economic growth, investments, and job creation."
The statement revealed that the JS-SEZ Masterplan and Blueprint would outline measures to accelerate investment approvals, ease the movement of people and goods, and develop new high-value, high-impact industries, creating more jobs for residents in Johor and Singapore. The long-term goal is to position the JS-SEZ as an investment gateway into ASEAN and create shared prosperity for future generations.
SMF president Lennon Tan emphasized that manufacturing contributes over 17 percent of Singapore's GDP and employs nearly half a million workers, making enhanced competitiveness a national imperative. He stated that Singapore enterprises must expand beyond local borders, with the JS-SEZ offering a compelling proposition for companies to adopt a twinning model by retaining headquarters operations in Singapore while setting up production in Malaysia's resource-rich ecosystem.
"As the JS-SEZ programme manager, SMF has engaged more than 700 participants keen on establishing or expanding operations, with interest continuing to grow. We look forward to partnering with the Johor state government and Maybank to help our members scale and realize their growth aspirations within the zone," said Tan.
Alvin Lee, Country CEO and CEO of Maybank Singapore, highlighted the expected acceleration of Singapore's manufacturing sector in line with global AI capex spend, contributing to resilient economic growth. He noted that partnering with a like-minded entity like SMF, committed to industrial transformation and sustainable development, enhances support for Singapore and Malaysia businesses, especially SMEs, in becoming future-ready.
"We are well-positioned to do so by leveraging our ASEAN franchise and as a preferred bank for Singapore-Malaysia transactions. The zone is a strategic choice for expansion given the proximity, long-standing relationship between both Malaysia and Singapore, and premium placed by investors on stability," Lee said.
The partnership with SMF aligns with Maybank's ROAR30 strategy of achieving a refreshed target of mobilizing RM300 billion (S$94 billion) in sustainable finance and new targets of RM100 billion (S$31 billion) each for the new economy and SMEs across ASEAN, while supporting Singapore's Manufacturing 2030 vision.