To ensure JS-SEZ achieves its intended impact, two critical concerns must be addressed from the outset:
- Compilation of business data across the nine zones
- Streamlining promotional activities from both public and private sectors
Without clear, accessible business data, investors may struggle to assess the viability of the region. Simultaneously, fragmented promotional efforts can dilute the message and reduce engagement from foreign stakeholders. Addressing these challenges effectively will provide a solid foundation for JS-SEZ’s success.
A Surge in Interest Post-Agreement Signing
Following the signing of the JS-SEZ agreement in January 2025, the initiative has drawn tremendous attention and interest from the region, particularly from businesses looking to restructure their supply chains in Southeast Asia or ASEAN. The early stage of promotion is crucial, serving as the first real test of G2G collaboration between the Malaysian and Singaporean governments in jointly attracting global investors to the region.
Investor Concerns: Lack of Clarity and Information Gaps
Despite the announcement of promoted sectors across nine zones in JS-SEZ and related tax incentives, including a special tax rate of 5% for up to 15 years, investors still perceive a lack of clarity. Many find the available information vague and ambiguous, hindering their decision-making process.Â
Compilation of Business Data Across Nine Zones
Investors, particularly those from China, tend to benchmark JS-SEZ against promoted industrial parks in China. They expect detailed insights into:
- Demographics and workforce availability
- Supply chain composition
- Specific government support and incentives
This critical information is currently scattered and difficult for investors to access in a structured, convenient manner. Without a centralised repository, potential stakeholders face barriers to making informed decisions.
The Iskandar Regional Development Authority (IRDA), previously responsible for promoting Iskandar Malaysia, which covers much of JS-SEZ, has shifted to backend facilitation for incoming projects. This leaves the promotional role in the hands of Invest Johor (for Johor) and MIDA (for Malaysia as a whole). The challenge for both agencies is prioritising JS-SEZ within their broader mandates.
A key concern is the compilation of data scattered across JS-SEZ’s nine zones. IRDA possesses the most comprehensive business data, except for Pengerang. Finding a way for IRDA to efficiently share this data with Invest Johor and MIDA, while integrating Pengerang’s data into a centralised dataset, is crucial. Consolidating and publishing this data in a structured and accessible format will enhance investor confidence and enable serious consideration of JS-SEZ as a high-potential landing area.
Streamlining Promotional Activities from Public and Private Sectors
Following the JS-SEZ agreement signing in January 2025, numerous public agencies and private entities have planned a series of conferences and events to promote JS-SEZ. While this keeps momentum high at the local level, it presents challenges for foreign investors:
- The sheer number of similar events can create confusion, making it difficult for investors to identify the most relevant platform.
- Fragmented promotional efforts may lead to inconsistent messaging, reducing clarity and impact.
To address this, the governments of Singapore and Malaysia should explore whether promotional activities can be consolidated into a single mega event rather than multiple smaller events. By consolidating efforts, a more structured promotional approach would:
- Optimise resources across both public and private sectors
- Prevent overlapping efforts and investor fatigue
- Ensure a cohesive and consistent message to the global investor community
A Targeted Strategy for JS-SEZ’s Success
Rather than adopting a mass marketing approach and relying on chance to attract global investors, Singapore and Malaysia should consider a focused strategy:
- Position Singapore as the financial and HQ hub, leveraging its advanced financial ecosystem.
- Promote JS-SEZ as a land- and talent-intensive hub, attracting industries needing affordable space and workforce availability.
- Consolidate essential business data across all nine zones for easy access and transparency.
- Streamline public and private sector efforts into a coherent, impactful promotional campaign.
If successfully executed, this strategy will not only set a strong foundation for JS-SEZÂ but also serve as a precedent for its long-term success and future development.
