Maybank Investment Banking Group expects the proposed Johor-Singapore Special Economic Zone to unlock opportunities and spur the exchange of trade, labour, investments and green energy initiatives between the two economies.
At the onset, they said the initiative already enjoys strong support from both national governments and Malaysia's new King, Sultan Ibrahim Sultan Iskandar. The two nations have also strengthened cross-border integration efforts with the rollout of passport-free immigration clearance via QR code at the Causeway and Tuas Link land checkpoint in March.
Faster and streamlined connectivity will likely attract more Johor workers to work at Singapore-based companies, as well as boost the appeal of the Malaysian city as a business hub. “We are optimistic that the creation of a SEZ will drive a step-up jump in the cross-border flow of goods, people and investments. There is a strong impetus from both the Malaysia and Singapore governments and the King to make the SEZ a success, given that it offers win-win opportunities that tie in with long- term policy goals,” the analysts said in the research note dated May 10.