KUALA LUMPUR: The Johor-Singapore Special Economic Zone (JS-SEZ) is poised to rival the Klang Valley in terms of economic contributions for the nation within the next decade, says Economy Minister Rafizi Ramli.
He said early estimates projected an additional US$28bil (RM126bil) to Malaysia’s annual gross domestic product.
“The whole area, if it goes as planned, will easily be able to rival the Klang Valley in the next five, 10 years,” he said at the Malaysia Economic Forum here yesterday.
Rafizi said the concept of an SEZ covering two different countries is very rare, adding that most are implemented under one jurisdiction.
This presented its own unique set of challenges and opportunities, he added.
“We need to see how we operate a single economic unit that is subject to regulations, laws and national policies of two countries.
“Both countries have to harmonise with their respective ministries and then we must come together and harmonise between both countries,” he said.
Rafizi added that Malaysia and Singapore also understood the value proposition of the JS-SEZ.
“Our plan at the Economy Ministry is to create a new engine of growth.
“Of all areas in Malaysia, common sense tells you that if we can leverage on the complementary elements of Johor and Singapore, Johor should be able to be that new engine of growth in the next decade,” he said.
He added that economies in Johor and Singapore also offer very good value propositions to investors in the world, at a time when global companies are looking to manage their geopolitical race.
The JS-SEZ, which encompasses an area of 3,505sq km, is a unique initiative between Malaysia and Singapore to promote both nations and attract investments.
Touted as an investment gateway to the Asean market, it is expected to strengthen business collaboration between Singapore, the Iskandar Malaysia economic corridor and the Pengerang petrochemical hub.
The key attractions of the special zone will include a passport-free immigration system and improved passenger rail lines between Johor and the city state.
Target sectors of the JS-SEZ include manufacturing, logistics, digital, industry, healthcare and education.
