A WORK IN PROGRESS
That doesn’t mean the glass game is currently completely opaque. There is still a long way to go before the JS-SEZ you fulfill its goals.
Some key areas require consideration. First, a set-up date for the Invest Malaysia Facilitation Centre-Johor, a one-stop shop that will simplify and expedite the process for businesses looking to establish in or grow to the JS-SEZ, will help to capitalize on the original interest generated by the JS-SEZ.
Also, regulatory clarity will give assurance to potential investors. Businesses must be aware of the laws, especially those relating to labor laws and labor permits, before they can undertake. Resolving any biting problems in a timely and effective way will also help a great deal in fostering investor confidence in the JS-SEZ.
Equipment, too, remains a problem. Instead of the traditional method of building equipment before attracting investments, Mr. Rafizi has outlined a “project-by-project” approach to developing facilities within the particular economic area. This could stifle progress in infrastructure development, and there are the potential problems with incomplete planning or detailed planning.
Unfortunately, the success of the JS-SEZ may hinge on addressing these “nuts and bolts” problems.
It will be essential to complement the internal infrastructure of the JS-SEZ with further expansion throughout Johor. For instance, while the 4km Johor-Singapore Rapid Transit System (RTS ) is expected to be operational by end-2026, more road, bus and rail connection to the RTS and more widely, within the state of Johor may help improve hopes for the JS-SEZ.
There’s also a broader issue of stability. There may be less complex industries interested in investing in the area to benefit from a larger home market and lower tax rates, even though the JS-SEZ is rightly focused on supporting fresh industries like AI and high value-add technologies. A strong foundation for investments would be provided by a strategy for these industries.
And then there’s transparency. Regular, open-minded evaluations of the JS-SEZ may help determine whether the government succeeded in achieving their goals. Are the tasks delivering on career development? Are the premier regions thriving as intended? Regularly reviewing the JS-SEZ’s purchase leads will improve.