The Johor-Singapore Special Economic Zone (JS-SEZ) has secured MYR37b (US$8.8b) in approved investments during the first half of 2025, accounting for two-thirds of Johor’s total investment inflows, according to a report by UOB Global Economics and Markets Research. This significant investment underscores strong economic ties between Malaysia and Singapore, even as US tariff uncertainties loom. Singapore-based firms have pledged S$5.5b (US$4.2b) since the signing of a Memorandum of Understanding in January 2024, highlighting investor confidence in the region.
At the second JS-SEZ Joint Investment Forum in Singapore, officials announced measures to enhance the zone’s appeal, including fast-track manufacturing licences and multiple entry investor passes. Malaysia also introduced the ASEAN Business Entity (ABE) initiative to facilitate cross-border operations and talent mobility, further boosting regional integration.
Despite evolving US tariffs, businesses are adapting by diversifying strategies, with ASEAN’s resilience attracting increased foreign direct investment (FDI). In 2024, FDI inflows to ASEAN reached a record US$225b, and the positive momentum continues into 2025. The JS-SEZ’s strategic location and proactive investment measures are expected to strengthen its role in global supply chains.
The Forest City Special Financial Zone in Johor has also been transformed, offering tax incentives and corporate tax rates between 0% and 5% to attract global business services and fintech firms. These developments position JS-SEZ and ASEAN as stable and promising investment destinations amidst global economic uncertainties.
