Lee says SMEs should also take advantage of any available incentives or loans.
ONCE the Johor-Singapore Special Economic Zone (JS-SEZ) kicks off, small and medium enterprises (SMEs) should tap into the Singapore market and avail themselves to support businesses from there.
Malaysian International Chamber of Commerce and Industry (MICCI) southern region chairman Lee Ting Kiat said Johor’s proximity to Singapore serves as a big advantage.
“Singapore is a developed country and an international financial city, where other countries set up their regional offices.
“Consequently, companies in Singapore are setting up their business in Johor, given its location just across the two causeways and the advantage of cheaper cost of doing business.
“We should not merely look at the cheaper cost of doing business, although it is one of the key factors in encouraging investments flowing from Singapore.”
He said Johor businesses should be mindful that the JS-SEZ should also be about high growth and high-value businesses.
“Being SMEs, they should find those pockets of opportunity to support the industries that are primarily set up within the JS-SEZ and Special Financial Zone (SFZ),” said Lee.
“For example, if a foreign investor sets up their manufacturing plant in Johor, the SMEs’ opportunities would be in construction, supply of building materials, worker accommodation, ESG consultancy and real estate consultancy.”
“If the incoming sector was tourism and hospitality, it would be food and beverages, transportation services, places of attractions, recreational and sporting activities, golfing and even vehicle support services,” he said.
SMEs should also take advantage of any available incentives or loans to support and expand their businesses, adopting financial prudence at all times, he added.
Lee also said MICCI had constant engagement with Singapore’s governmental and non-governmental business bodies, such as the Economic Development Board, Enterprise Singapore, Singapore Business Federation, Singapore Manufacturing Federation and Consulate General of Singapore.
“In Johor, we collaborate and engage with the Iskandar Regional Development Authority, Iskandar Investment Bhd, Invest Johor, Malaysian Investment Development Authority and the Investment, Trade and Industry Ministry on various activities.
“MICCI is consistently a strong advocate for foreign direct investment, particularly in the JS-SEZ and SFZ.
“We fulfil our role as a conduit and facilitator between the investors who are members, relevant authorities, and private sectors so that the challenges of setting up businesses and their operations are overcome or at least minimised,” he said.
If a local SME wants to succeed in its business and intends to upscale, it should keep tabs on the news, available opportunities and incentives pertaining to the JS-SEZ and SFZ, added Lee.
