KUALA LUMPUR 7 January 2025-The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) applauds the signing of agreement for Johor-Singapore Special Economic Zone (JS-SEZ). The agreement will provide a defined framework for facilitating trade and investment, as well as streamlining bureaucratic procedures and enhancing connectivity, making the zone more attractive and competitive to businesses and investors through the provision of special tax incentives, including Pioneer Status and Investment Tax Allowance
President of ACCCIM, Datuk Ng Yih Pyng said that the signing of the agreement not only marks a significant milestone in both countries’ commitment to spur robust trade and strategic collaborations but also heralds new business and investment opportunities ahead.
ACCCIM is pleasing to see the positive and constructive manner in which both Prime Ministers and their team approached the MoU and the signing of agreement to secure win-win outcome and complementary synergies as well as mutual benefits for both countries.
Malaysia and Singapore have a deep bilateral trade and economic ties. Singapore is Malaysia’s second largest trading partner in the first eleven months of 2024 and also the second largest approved foreign investor in various economic sectors in the first three quarters of 2024.
We look forward to the formulation of JS-SEZ Blueprint to serve as a catalyst to work together between public and private sectors to proactively develop the SEZ for both countries and also the region. The Invest Malaysia Facilitation Centre Johor (IMFC-J) which acts as one stop centre for facilitating investment must offer both domestic and foreign investors a smooth journey from initial interest to operational realization, leveraging on the digital platform. Time is of the essence!
Datuk Ng emphasises that an effective planning, monitoring, coordination and enhanced communication of both countries are critical as it affects the performance and deliverables of the zone as well as the trust of both countries. The identified projects (50 projects within the first five years and a cumulative 100 projects within the first ten years) must be implementable and doable within a clear timeline and the resources needed. The Blueprint should cover the following aspects:
a) The JS-SEZ should operate under a clear, transparent regulatory framework that ensures consistency and clarity of policies while preserving investor confidence
b) Clear-defined ownership for the management and operations of the SEZ, having full responsibility to resolve all the operational difficulties of the zone management;
c) Conduct a comprehensive assessment of the funding requirement for on- and off-site industrial infrastructure development in the location of SEZ, including a survey of potential investors and supporting industries in alignment with the identified priority sectors and industries;
d) Maintain a supportive and business friendly regulatory regime and streamlined bureaucratic procedures;
e) The SEZ should promote inclusive growth by ensuring the benefits of SEZ are distributed across different locations and sectors, fostering linkages between companies operating in SEZ and local SMEs to create opportunities for local suppliers and service providers;
f) Provide the necessary infrastructure and access to finance, technology and markets for SMEs; and
g) Manpower development, skill- and vocational training, and capacity building programmes are needed to meet human resource requirements of our industrial sectors.
ACCCIM believes that the effective implementation of the SEZ will deepen the economic partnership between Malaysia and Singapore, spurring cooperation and significant investment opportunities in diverse sectors and enhancing regional connectivity.
Datuk Ng urges domestic SMEs to explore the aplenty opportunities, finding suitable partners to invest in the zone. More importantly, the government must ensure that domestic industries will benefit from FDI in the SEZ through technology transfer, sharing of expertise, and creation of job opportunities for local people
