Johor-Singapore SEZ: ‘Build-as-they-invest’ model prudent but businesses raise concerns over infrastructure delays, red tape

Teh Kee Sin, the consultant to the Small and Medium Enterprise Association of South Johor, shares these views. &nbsp,

The company president noted that the market-response approach is “more reasonable” as it manages risks cautiously, especially given the Indonesian government’s fixed resources. &nbsp,

” But on the other hand, would foreign investors come if they see that there is no assurance on basic infrastructures like Wi-Fi (or ) electricity.” Every entrepreneur would only go in if these are all fundamental (amenities ), Teh said, “because nobody is going to spend if there is no set infrastructure.” &nbsp,

He added that there have been cases in Johor where businesses have relocated to industrial facilities only to discover that the power they have is not sufficient for their businesses. &nbsp,

Organizations must use resources to throw their own wires. International businesses may not be able to accomplish this, and they will evaluate the situation differently ( in terms of whether to spend ), he said. &nbsp,

However, scholar Anthony Dass, who is the senior director of the Malaysian Institute of Economic Research, was more optimistic about the fresh design, pointing out how it adapts system to the specific needs of investors. &nbsp,

The project “avoids the hazards of oversupply seen in earlier projects like Iskandar Malaysia,” Dass said,” thereby reducing useless spending on underused assets, improving efficiency and reducing economic chance.” &nbsp,

But he, too, acknowledged that the unit could lead to delays especially if traders adopt a wait-and-see method. &nbsp,

” The SEZ’s progress may advance haphazardly, which could hinder its general impact”, added Dass. &nbsp,

SPLIT FUNDING ‘ FAIR’, LEVERAGES ON Analytical Rewards: ANALYSTS&nbsp,

Rafizi even made a point about how the money for the SEZ will be split, with Singapore granting funding for business expansion and investment facilitation while Malaysia will provide for the financial zone’s infrastructure. &nbsp,