Johor Menteri Besar Datuk Onn Hafiz Ghazi proclaimed the state as the ‘Home of Champions’ in his powerful speech at the Nikkei Forum Medini Johor 2025, announcing a number of recent achievements that highlight its rapid economic growth.

He declared that Johor had already obtained RM27.4 billion in authorised investments in the first quarter of 2025, completing the task in three months as opposed to nine months the previous year.

Accelerated investment rate

According to his keynote address, RM23 billion worth of new project approvals were made in April alone, spanning from advanced manufacturing and semiconductors to artificial intelligence and pharmaceuticals.

Johor's pipeline project now extends well into 2026, thanks to agreements signed by international companies looking into prospects in robotics, precision engineering, and biotechnology.

According to him, total inflows for the first half of the year will surpass RM60 billion, more than double the amount from the previous year.

Cross-border cooperation

The Johor–Singapore Special Economic Zone (JS SEZ), which officially opened on Jan 7, is at the heart of this boom.

The JS SEZ, which spans 3,571 square kilometres across nine flagship areas, unifies tax incentives and regulations to attract multinational corporations.

He confirmed that pharmaceutical leaders are in late-stage negotiations to establish research and development centres in southern Johor, while tech giants like Nvidia and Microsoft have already committed to expanding their data centres.

Fast forward infrastructure

The speed at which infrastructure is being implemented is equally impressive. This includes the Johor Bahru–Singapore Rapid Transit System which is currently at 83% completion.

Trial runs are scheduled for late 2026, and full service is expected to begin in early 2027. Up to 10,000 commuters per hour will be able to travel across borders in 15 minutes once it is operational.

Another development is the Electric Rail Upgrade via the Gemas–Johor Bahru double-tracking project that opens in December.

It will reduce travel time from Kuala Lumpur to Johor Bahru to 3½ hours. The project is currently 92% complete.

The Menteri Besar underlined that "our strategic backbone is seamless connectivity and for generations to come, these rail link will propel talent flows, trade, and tourism in addition to moving people”.

Green energy is the main event

In the speech, he also highlighted Johor's efforts to promote sustainability as evident in Pengerang.

The Sultan Ibrahim Solar PV Park is nearing completion and will provide 500 MW of clean electricity, which is sufficient to power 150,000 homes.

Meanwhile, the RM9.5-billion Maharani Energy Gateway in Muar is expected to create 45,000 jobs in construction and operations by 2027, adding 1 GW of solar capacity.

Transportation, services, and the digital age

Additionally, the service sector is booming.

Thanks to the 12% increase in foreign visitors, wholesale and retail trade revenues reached RM162.4 billion in Q1, 5.5% recline over the year. In the meantime, Johor's digital economy produced RM87.9 billion during the same time frame, demonstrating the unquenchable demand for 5G connectivity and data centre capacity.

With an estimated investment of RM15 billion by 2028, the state has set aside 1,200 hectares for new data-centre parks in an effort to capitalise this trend.

In order to improve public safety, waste management, and traffic flow, plans are also strategised to implement the Johor Smart City Blueprint in late 2025, utilising IoT sensors and AI analytics.

Iskandar, the unstoppable momentum of Malaysia

As of September 2023, the state's premier economic corridor, Iskandar Malaysia, had approved a total of RM409.5 billion in investments, surpassing its 2025 target two years ahead of schedule.

Mixed-use urban hubs, medical tourism complexes, and logistical mega-parks are among the recent approvals.

It will open an ASEAN Industrial Park later this year to cater to RCEP member countries, offering streamlined talent mobility and preferential tax schemes.

Pro-business environment

A number of investor-friendly policies are the driving force behind Johor's record pace.

Since its establishment in February, the Invest Malaysia Facilitation Centre-Johor (IMFC J) has expedited 42 mega-projects through the Johor Super Lane and handled 252 investment enquiries, resulting in a 30% reduction of approval times.

In addition, the Johor Talent Development Council collaborates with technical colleges and universities to generate graduates with expertise in biotech, AI, and sustainable engineering.

Heart of inclusive growth

The government has incorporated social impact into every initiative despite its rapid expansion.

The master plan includes entrepreneurship grants for small businesses, food security programmes for rural districts, and affordable housing programmes for young families.

The Menteri Besar said all boats must be lifted by economic success and prosperity with purpose is what we envision.

The path ahead

Johor's leadership is steadfastly committed to maintaining this record run with three quarters of 2025 remaining.

The state's capacity to turn predictions into reality will be put to the test with the impending release of the Smart City Blueprint, additional green-energy tenders, and a second round of investment announcements.

Johor is in a position to redefine what it means to be the ‘Home of Champions’ and achieve the desired high-income status by 2030 as the southern gateway continues to outperform its peers.

-- BERNAMA

Prof Dr Abd Rahman Ahmad is the Dean of the Johor Business School at Universiti Tun Hussein Onn Malaysia (UTHM).