JS- SEZ TO STRENGTHEN ASEAN’S SUPPLY CHAIN RESILIENCE – TENGKU ZAFRUL

JOHOR BAHRU, April 21 (Bernama) -- The Johor-Singapore Special Economic Zone (JS-SEZ) is set to enhance ASEAN's supply chain efficiency and resilience, said Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz.

Additionally, he said the proposed establishment of an ASEAN/Regional Comprehensive Economic Partnership (RCEP) Industrial Park within the JS-SEZ will contribute towards improving regional economic integration and attracting high-value investments.

He believed that the proposed industrial park aligns with the aspiration to enhance supply chain efficiency and resilience.

"Ultimately, we want the JS-SEZ to be more than just a bilateral framework -- it is a value proposition for the whole of ASEAN," he said in his keynote address at the JS-SEZ Joint Business and Investment Forum today.

Also present were Johor Menteri Besar Datuk Onn Hafiz Ghazi and Singapore’s Deputy Prime Minister and Trade and Industry Minister, Gan Kim Yong.

The two-day event, themed ‘JS-SEZ: Bridging Economies, Strengthening Supply Chains’, is organised by the Investment, Trade and Industry Ministry (MITI), in collaboration with Singapore’s Ministry of Trade and Industry and the Johor state government.

According to Tengku Zafrul, the Federal government also supports the proposed regulatory sandbox initiative, to be located at the Ibrahim Technopolis (IBTEC) and Ladang Air Manis in Kulai.

He said the initiative will be instrumental in unlocking new waves of sustainable, high-value investments that benefit both local stakeholders and international partners.

In the meantime, Tengku Zafrul said the heart of the Malaysia-Singapore relationship lies in the fact that the two countries are at their best when working together.

"Malaysia was Singapore’s second-largest trading partner, while Singapore was Malaysia’s largest export destination and second-largest trading partner globally in 2024.

"Our trade in 2024 was a robust US$86.69 billion (US$1=RM4.41), driven by electrical and electronics products, petroleum products, machinery, equipment and parts, agricultural, optical and scientific equipment," he added.

Tariffs diplomacy

Tengku Zafrul noted that Malaysia is fully committed to securing a favourable resolution that preserves vital market access and supply chains, attracts continued foreign investment, and supports the well-being of its workers and businesses.

He stressed that alongside ASEAN colleagues, Malaysia will not introduce retaliatory tariffs against the United States (US).

"From ASEAN’s perspective, retaliation is counterproductive. Rather, the region seeks to engage constructively with the US in a forward-looking manner to strengthen economic ties and address shared challenges," he said.

Domestically, he said the Malaysian government recognises the challenges the tariffs pose to workers, manufacturers and businesses.

"We must and will find a mutually acceptable, fair and equitable solution to this issue, both bilaterally and multilaterally," he added.

-- BERNAMA