Singapore Evaluates Johor-Singapore SEZ Amid Business Concerns

Singapore is carefully weighing the benefits and risks of the Johor-Singapore Special Economic Zone (JS-SEZ) as local industries express concerns over its potential impact. In a recent Parliamentary session, Minister of State for Trade and Industry Alvin Tan acknowledged fears that the SEZ might lead to business relocations to Malaysia but assured that the government is closely monitoring the situation.

MP Saktiandi Supaat, representing the Singapore Transport Association, highlighted worries that Malaysian logistics firms could enter Singapore’s market, creating competitive challenges. He sought clarity on measures to prevent an overlap in incentives between both countries and protect local businesses.

Despite these concerns, Mr. Tan emphasized the strategic advantages of the SEZ, which allows companies to leverage Singapore’s strengths while expanding operations in Johor. Over 100 Singapore firms are expected to explore opportunities through an upcoming business mission. Industries such as manufacturing, logistics, and digital services could benefit from enhanced cross-border operations.

To support businesses, Singapore will maintain assistance schemes like the Market Readiness Assistance grant and the Enterprise Financing Scheme. Discussions between Singapore and Malaysia are ongoing, with further details expected soon as both nations seek to attract investments while safeguarding local economic interests.