JS-SEZ Offers Scalable Regional Model For Seamless Cross-border Logistics -- Economists

By Nur Faradilla Mohammad

JOHOR BAHRU, Feb 3 (Bernama) -- The Johor-Singapore Special Economic Zone (JS-SEZ) offers a scalable development model throughout the region, predicated on its seamless cross-border logistics and efficient flow of goods, according to Khazanah Research Institute chairman Dr Nungsari Ahmad Radhi. 

He said the JS-SEZ is seen as a bilateral development framework that can transform regional development approaches, especially through direct cooperation between Johor and Singapore. 

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“I hope this initiative also involves the movement of goods, where a form of limited ‘customs union’ can stimulate growth by leveraging the economic positions of Johor and Singapore,” he told Bernama. 

He said the same development model can be adapted in border areas such as Kedah, Perlis and Kelantan with Thailand’s southern provinces; Tawau, Sabah, with Indonesia’s East Kalimantan; and Kuching, Sarawak, with West Kalimantan. 

He said the development approach based on cross-border integration can accelerate regional growth and strengthen Malaysia's role as a regional economic hub. 

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So far, JS-SEZ has recorded impressive performance, with a total of RM91.1 billion in approved investments as of the third quarter of 2025, surpassing other states, including Selangor (RM51.9 billion), the Federal Territory (RM45.9 billion) and Penang (RM23.7 billion). 

Nungsari said the development of the Iskandar region in southern Johor for almost two decades has received a boost via the implementation of the JS-SEZ, which formalises Singapore’s involvement more comprehensively. 

He said the integration of Tanjung Pelepas Port with Singapore Port could potentially create one of the world’s largest maritime hubs. 

Besides, he said Senai International Airport could be utilised through closer cooperation, while Pengerang could operate in parallel with Singapore as the world's leading crude oil downstream logistics and processing centre. 

"This not only involves investment and property development, but also integrated logistics development, which can provide economic benefits to both countries," he said. 

Previously, Economy Minister Akmal Nasrullah Mohd Nasir said the JS-SEZ, which is now moving from the planning phase to implementation, is expected to combine Johor’s resources and workforce with Singapore’s capital, technology and global network to attract quality investments.

Meanwhile, Malaysia University of Science and Technology provost Barjoyai Bardai said the JS-SEZ was expected to have an initial impact with increased investment sentiment, particularly in the high-value industrial, logistics and support services sectors. 

He said the JS-SEZ also has the potential to reactivate the economic value of existing assets, such as Forest City, through its integration into the more productive Johor-Singapore economic ecosystem. 

He said the move should be seen as a structural improvement initiative to ensure that the large investments could be optimised continuously. 

He said the successful implementation of the JS-SEZ would also depend on policy clarity, efficient joint governance and the ability to attract quality investments that could generate spillover effects to the local economy.

-- BERNAMA