Johor to become Malaysia’s next growth driver
JOHOR is anticipated to become Malaysia’s next growth engine as it is fueled by the Johor-Singapore Special Economic Zone (JS-SEZ) and the Special Financial Zone (SFZ) in Forest City.
(TMR) – According to RHB Investment Bank, government-led catalytic development and foreign investment are expected to boost various sectors.
This includes construction, data centres, energy, petrochemical, industrial, and tourism. It is also expected to have a positive impact on the property market.
“We believe Johor’s economic growth will continue to exceed the national average, driven by its robust manufacturing sector, sustainable strength in its service industry, advantageous location and well-developed infrastructure, as well as supportive policies from the state and federal governments.
“Johor has a well-developed infrastructure including port, airport, road network and utilities, equipped with competitive business operating costs,” the bank said in an Invest Johor market survey report.
The state is currently ranked as Malaysia;s third economic contributor behind Selangor and Kuala Lumpur.
It is also the second largest contributor to national trade and contributes 9.5% of the country’s Gross Domestic Product (GDP). In 2023, Johor contributed 29% or RM753.1 billion to the country’s total trade.
RHB Investment stated that Johor’s GDP growth outpaced Malaysia’s by 4.1% in 2023 which was primarily driven by the services and manufacturing sectors which accounted for 84% of Johor’s GDP.
“Johor’s service sector has experienced the fastest growth among Malaysian states over the past five years.
