Johor’s special zones including with Singapore could help its economy outpace other Malaysian states PM Anwar
Prime Minister Anwar Ibrahim highlighted how Johor is a key growth driver in Malaysia, with the state’s progress and development among the top nationally.
(CNA) – Johor’s economy could outpace that of other Malaysian states in the next one to two years as high-impact projects such as the Johor-Singapore Special Economic Zone (SEZ) and the special financial zone in Forest City spur growth, said Malaysian Prime Minister Anwar Ibrahim on Thursday (Apr 18).
“Both (projects) will ensure a more rapid growth (for Johor). They are still being formulated but will help in accelerating economic growth,” he told reporters during a Madani Aidilfitri 2024 celebration in Johor Bahru.
Singapore and Malaysia signed a Memorandum of Understanding in January on the Johor-Singapore SEZ, which aims to boost cross-border economic connectivity.
Under the MOU, both sides will work towards boosting the cross-border flow of goods and people and develop a framework that will lead to a full-fledged agreement on the zone.
Both countries are also exploring other initiatives in the leadup, including a passport-free clearance system on both sides of the border.
Meanwhile, Mr Anwar announced in August last year that the beleaguered Forest City project in Johor would be designated a special financial zone to spur the economy in the Iskandar Malaysia region.
The zone would offer business incentives to set up operations, such as a flat income tax rate of 15 per cent for skilled foreign workers, compared to the 30 per cent elsewhere, multiple entry visas, as well as fast track entry for those who are based in Singapore.
“I am confident this will attract many companies which are experiencing high operating costs in Singapore,” Mr Anwar said at the time.
In his Thursday speech, the prime minister said Johor continues to drive growth in Malaysia, with the state’s progress and development among the top nationally.
“We are establishing a special economic zone that can develop a close relationship with Singapore and we are setting up a special financial zone in Forest City. These indicate that Johor will record a very rapid growth,” he said.
