Singapore-Malaysia border economic zone a ‘potential game-changer’ but hurdles abound: investors

The planned Johor-Singapore Special Economic Zone (JS-SEZ) is more likely to succeed than previous joint ventures between the city state and Malaysia due to stronger bilateral government support and a desire by businesses to “internationalise” closer to home, proponents of the project say.

However, investors say the JS-SEZ will need to address serious logistical challenges, such as congested border crossings and lengthy permit processes, to reach its full potential.

“This isn’t just another project. It’s a potential game-changer for both Malaysia and Singapore,” Teo Siong Seng, chairman of JS-SEZ Singapore Business Working Group, said at an event organised by the Singapore Business Federation (SBF) on Thursday.

“There are many SEZs in the world … the difference here is that we are very close together. We have been neighbours for a long, long time. We have got the willingness and the commitment of the political leaders to make this work.”

After signing an MOU on the SEZ in January, both countries are tipped to ink the deal later this year at their annual bilateral Leaders’ Retreat.

Investors were sanguine about the project but said various hurdles still needed to be overcome.

In relation to easing cross-border people movement between Singapore and Johor, 160 Singaporean businesses that responded to an SEZ survey organised by the SBF said there should be special immigration lanes for people working in the SEZ and streamlined customs and border clearances using passport-free QR codes or biometrics, as well as digitised cargo clearance.

It should not be “three hours in and three hours out”, business leaders at the SBF event on Thursday said, referring to the cross-border commute time.

The Kuala Lumpur-Singapore High Speed Rail (HSR)