MIDA Positions JS-SEZ As Catalyst For Investment And Integrated Supply Chain Growth

By Siti Noor Afera Abu

KUALA LUMPUR, April 28 (Bernama) -- Malaysia is boldly positioning itself as Asia's next investment and supply chain powerhouse through the Johor-Singapore Special Economic Zone (JS-SEZ).

The Malaysian Investment Development Authority (MIDA) stands at the forefront of this transformation, orchestrating a strategic push to attract global investors and reshape regional trade dynamics.

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First proposed in 2023, the economic zone is now gaining traction, with the numbers telling a compelling story of growing investor interest and momentum.

It also marks another historic milestone in Malaysia-Singapore relations, with both nations working closely to complement each other in the evolving economic landscape.

As each other’s top trading partners within ASEAN, both countries are set to further integrate their economies through JS-SEZ, driven by strategic collaboration and significant investments.

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JS-SEZ as a Gateway to Global Supply Chains and Smart Manufacturing

In an exclusive interview with Bernama, MIDA chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid highlighted the transformative potential of the JS-SEZ.

"We are witnessing the creation of an economic powerhouse that combines the best of both nations. This is not just collaboration — it is strategic integration at an unprecedented scale," he emphasised.

He said Singapore plays a complementary role, contributing its established logistics connectivity and financial infrastructure.

Its integration into the JS-SEZ framework enhances access to global markets, particularly through its air transport networks and trade facilitation services.

"Businesses operating within the JS-SEZ will benefit from proximity to a mature financial environment, supported by financial institutions in both countries that facilitate cross-border transactions and trade.

"This ecosystem complements the zone’s objective to provide a seamless platform for regional and international growth,” Sikh Shamsul noted.

He said Malaysia's technological prowess adds another crucial dimension to this partnership.

The country has established itself as a semiconductor manufacturing hub, commanding seven per cent of the global market and hosting half of the world's top semiconductor companies.

This achievement underscores Malaysia's evolution into an innovation-driven manufacturing hub.

What makes the JS-SEZ truly unique is its ability to harness the dual strengths of Malaysia and Singapore.

“Businesses can capitalise on Singapore’s established global connectivity while tapping into Malaysia’s deep industrial capabilities, innovation-focused policies, and vibrant manufacturing ecosystem.

"From semiconductors to speciality chemicals, we are enabling the creation of an integrated, future-ready value chain. With the JS-SEZ, we are not just establishing a zone — we are building a gateway: a gateway to global supply chains, next-generation manufacturing, and regional collaboration,” he said.

Malaysia brings world-class port infrastructure, a robust financial services sector, and a growing base of technology-driven enterprises to the table.

Together with Singaporean partners, the JS-SEZ offers a seamless platform where businesses can innovate, scale, and thrive, positioning Malaysia as a key anchor in the global economic landscape, he said.

Unleashing Local Potential to Shape Global Progress

Malaysia’s plan to grow its economy is not solely about attracting foreign investment — it is also about helping local businesses grow and integrate into global and regional supply chains.

Sikh Shamsul said MIDA assumes an important role by supporting key industries, aligning policies, improving infrastructure, developing talent, and driving projects like the JS-SEZ.

The agency focuses on helping local companies grow through programmes that ease market entry, regulatory compliance, and capability building.

This includes, firstly, vendor development, enabling local suppliers to integrate into the global semiconductor value chain through skills training and capability assessments.

Secondly, supply chain events to build networks between local small and medium enterprises (SMEs) and global players in the digital infrastructure ecosystem.

“Thirdly, manufacturing resilience through tech adoption, where programmes support SMEs in adopting smart manufacturing systems, automation, and digital platforms in line with Industry4WRD,” he added.

He said talent development remains a cornerstone of this strategy.

"Through our Graduate-Industry Matching Programme, we are creating Malaysia's next generation of tech leaders.

"We are not just filling current needs — we are building expertise in AI, semiconductor design, mechatronics, and advanced software development. Our targeted training initiatives in data analytics, printed circuit board design, and analogue circuits are ensuring Malaysia stays at the forefront of technological innovation,” he said.

A Bridge to Boundless Market Opportunities

Industry leaders are also showing their eagerness to harness the potential of JS-SEZ, which is poised to become ASEAN’s next investment hub.

ST Telemedia Global Data Centres Southeast Asia chief executive officer Lionel Yeo highlighted the strong potential of the JS-SEZ in addressing the rising demand for data centre services across the Asia-Pacific region.

This, he said, encourages the company to continue exploring expansion opportunities and deepen its presence in Johor as a strategic hub.

“We intend to continue supporting our customers across various markets, ensuring consistent service levels regardless of geography. Our focus is on enabling businesses and end-users to grow not just locally, but globally as well,” he said.

He noted that the Malaysian government’s proactive efforts to attract data centre investments have significantly boosted the industry over the past five years.

“Just five years ago, Malaysia had around 50 megawatts of data centre capacity. Today, it has expanded more than thirtyfold to about 1.5 gigawatts.

"That is a remarkable achievement driven by robust policymaking,” he said.

Yeo also pointed to significant opportunities for data centre development in Malaysia, particularly Johor, due to available space and power capacity.

This positions the country as a potential location for future growth in the region, especially considering evolving regional demands.

“Together, Johor and Singapore form a powerful partnership, well-positioned to continue meeting the growing demand for data centre services across the Asia-Pacific,” he said.

Similarly, Malaysian-grown electronics manufacturing services provider CAPE EMS Bhd, renowned for its expertise in the production and delivery of electronic components and devices, sees promise in JS-SEZ.

CAPE EMS Bhd managing director Christina Tee said the JS-SEZ’s strategic location in Johor serves as a strong platform for the company to further tap the Singaporean market.

“This is a very positive move and a brilliant decision by our federal government and the state government.

"We already have several partnerships with Singapore companies, and I strongly believe that with the special encouragement offered by the free trade zone, local partnerships will have greater opportunities,” she said.

-- BERNAMA