Malaysia and Singapore to Launch the Johor Economic Zone and What It Means to Expats
An agreement signed by leaders of Malaysia and Singapore on 7 January 2025 launched the creation of the Johor-Singapore Special Economic Zone (JS-SEZ). With JS-SEZ, expats could expect better cross-border mobility, reduced business red tape, and more investment opportunities.
Johor Bahru and the Iskandar Malaysia region have enjoyed vibrant economic ties with Singapore. JS-SEZ is expected to bolster these economic ties and further foster a fruitful business ecosystem. Learn more about all the expats need to know in this Pacific Prime Singapore article.
What Is the Johor-Singapore Special Economic Zone (JS-SEZ)
The Johor-Singapore Special Economic Zone (JS-SEZ) is a special economic zone aiming to bolster investment and movement of goods and people across the border of Malaysia and Singapore.
Malaysia, especially in the southern state of Johor, and Singapore have enjoyed prosperous economic ties and vibrant cross-border movement.
Johor-Singapore Causeway is one of the busiest land border crossings in the world, with around 300,000 people crossing the border daily for work or study. The creation of JS-SEZ aims to tap into this vibrant cross-border ties between the two countries and unlock its full potential.
The JS-SEZ is expected to feature tax-breaks, streamlined approval process for business operations, reduced bureaucratic red tapes, and new infrastructures to better facilitate business operation, investment, and cross-border movement of goods and people.
The JS-SEZ will feature nine flagship zones across the southern region of Johor, including:
Johor Bahru city centre
Iskandar Puteri
Tanjung Pelepas
Pasir Gudang
Senai
Sedenak
Forest City
Pengerang Integrated Petroleum Complex (PIPC)
Desaru
Each flagship zones will cater to different business sectors, such as:
Manufacturing
Business services
Digital Economy
Tourism
Healthcare
Energy
Logistics
Food security
To better connect the two sides of the border, the Rapid Transit System Link (RTS Link) is being constructed between Woodlands, Singapore and Bukit Chagar, Johor Bahru. The RTS Link is expected to ease the notorious traffic congestion on the Johor-Singapore Causeway.
The RTS Link aims to begin its operation in 2026, with estimated 10,000 users daily.
Several initiatives were also outlined following the signing of the agreement to further facilitate business operations and investment in the JS-SEZ, such as:
One-Stop Business Facilitation Center to accelerate business and investment processes, including operation and construction approvals, tax arrangements, and licenses for foreign investors
Passport-Free Clearance System on both sides of the border to facilitate cross-border movement, modeling based on insights from the Shenzhen-Hong Kong border.
Digitized argo clearance process to expedite movements of goods, imports, and exports
The two countries expect 20,000 skilled jobs to be created in the JS-SEZ in the first five years of operation as well as 50 projects to be expanded. One hundred projects are expected to be expanded in the first 10 years.
What the JS-SEZ Could Mean to Expats
Expats in Malaysia and Singapore can expect benefits from better goods and people movement from the JS-SEZ, as well as strengthened economic and investment opportunities supported by the new infrastructures and initiatives launched by authorities on both sides of the border.
Being one of the border crossings with the highest traffic in the world, the Johor-Singapore Causeway has been plagued by traffic congestion and accidents, especially during rush hours when commuters, who likely have to wake up way before dawn, have to rush to offices or schools.
The opening of the JS-SEZ and infrastructures supporting it could make life a little easier, whether for workers commuting to work, employers seeking talents, or other commuters who could gain benefits from the new RTS Link.
New clearance systems, both for goods and people, could also enhance cross-border movement not just between the two countries, but also among foreign investors who could capitalize on the two countries’ strategic location within the Southeast Asian region.
The creation of the JS-SEZ also aims to address Singapore’s land and resources scarcity and Malaysia’s ambition for diversified investment and job opportunities.
About Pacific Prime Singapore
As a registered broker, Pacific Prime CXA is committed to finding the best insurance solutions for their clients, either individual or corporate.
We leverage deep ties with top global insurers and over 20 years of experience in the industry to ensure that our clients have the best selections of insurance or benefits solutions that suit their objectives and budgets.
With the creation of the JS-SEZ, Pacific Prime is ready to support expats and businesses in capitalizing on the vibrant cross-border movements in this region.
For our expat clients, we offer advice and brokerage services for several insurance solutions, including international health insurance plans and family health insurance plans to ensure you and your loved ones are covered whichever side of borders you are in.
For our corporate clients, Pacific Prime Singapore could offer you business insurance and tailored employee benefits solutions that could satisfy your employees’ needs and meet regulations across multiple jurisdictions.
Contact our insurance experts now for free, no-obligation plan comparisons!
Ninnart is a content writer at Pacific Prime. She graduated with a Bachelor of Arts in International Social Sciences from University of Tsukuba, Japan. Prior to her arrival at Pacific Prime, her professional pursuit has taken her everywhere from an online publisher dedicated to raising Thai people’s awareness of the aging society to an international organization working to enhance regional academic collaboration. Through such experience, she has gotten her hands on various kinds of content, from colorful photo albums on ballroom dancing to news articles summarizing insights from the senior thought leaders of Southeast Asia’s higher education sector.
Coming to Pacific Prime, she is ready to utilize her experience for the new pursuit. With a strong passion for storytelling and writing, she hopes her words could help bring people closer to the best international health insurance plan that works for them. After all, as a writer, there is no greater honor than when one’s words can add clarity to the world of the readers.
Apart from writing, she is an avid planespotter. On the weekends, you can expect to find her loitering around the airport, gawking at all the aircrafts taking off and landing. When the weather does not permit planespotting, you can find her huddling on her cozy couch, watching ballet and figure skating as well.
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