MANY ARE READY TO SET UP A Store
In addition, SP Manufacturing, a second unit of its electronics manufacturing business, has opened its second location in Johor’s Senai area, which can house up to four production lines.
It has been in operation since October of last year, and it is the company’s most recent move within a global community of businesses that includes China and Europe.
Setting up in various locations, according to its CEO, builds operating resilience in businesses and systems.
” Investing in Johor and Penang gives us this administrative resilience to meet the needs of our customers.” Because we have a second site in case of some issues or in case ( we need ) a backup”, he said.  ,  ,
He added that Malaysia has grown to be a significant component of the East Asian supply chain, with more and more silicon companies establishing their operations there.
” There’s a huge flow of electronics finished goods ( in Malaysia ), as well as all the ancillary functions that require manufacturing services”, he said.
With business partners also setting up in Johor or outside, Mr Ong said his agency’s producing lead times, manufacturing and materials power, and customer service have improved.
WHY ARE FIRMS FLOCKING TO JOHOR?
About 20 businesses have already established facilities in Johor within the Singapore Manufacturing Federation ( SMF), which has about 5, 000 members, prior to the signing of the zone’s terms on Monday ( Jan 6 ).
These businesses generally require more room and staff for production because these businesses are in the electronics and wood-related manufacturing industries.
Another 15 % of its associates are looking to expand their operations there, according to a poll conducted by the union.
Lennon Tan, the organization’s leader, said the interest is coming from downstream and upstream supply chain businesses, including those involved in transportation and storage, as well as those involved in turning raw materials into finished goods.
He added that this is a part of their diversification approach, with some adopting the China Plus One method, which encourages businesses to expand their supply chain and manufacturing operations beyond relying solely on China.
In these two decades, Singapore companies have been looking for opportunities to diversify their dangers and also look for ways to improve their performance through cost-effective creation, he said.
Lower expenses, pro-business policies, and resources are available in Johor, as well as a solid supply chain, access to capital, and global connection in Singapore, according to Mr. Tan, making the JS-SEZ a great location for firms to capitalize on strengths on both sides of the Causeway.
IN SG, DO NOT LET FOOTPRINT BE RETAIN.
Business Singapore ( EnterpriseSG), the company that helps Singapore companies walk abroad, said this does not mean companies are uprooting from Singapore.
While businesses are moving some of their operations to maximize business advantages, most still have their headquarters and some operations in Singapore, according to Lim Jing Jun, director of the agency for Southeast Asia.
For instance, both the agriculture companies Archisen and SP Manufacturing may keep operations in Johor up while production moves to the area.
Here, Archisen will continue to operate a smaller land, with its focus on innovation and research, including finding out how to increase crop length.
Singapore will be SP Manufacturing’s offices, as well as its heart for architectural and development work, and may lead the way for local offices.
Mr. Lim added that the SEZ strengthens the value proposition of both Johor and Singapore by strengthening cross-border goods transportation, facilitating free movement of people, enhancing communication, and bolstering the regional business ecology.
CONCERNS Are
Nevertheless, there are lingering fears holding companies again, market players said.
The regular congestion on the Causeway, according to Mr. Tan, is a major concern because it would stifle the flow of people and products.
” We also want to know after we invest, there’s really a proper authority to look after the investors, to make sure that facilitation of all the policies and so on ( are smooth )”, he added.
The SMF said it is in conversations with the country’s government to collaborate with them to develop talent directly in Malaysia in response to Johor’s apparent shortage of skilled workers.
These issues may remain why some organizations, especially smaller companies, are adopting a wait-and-see position before considering a shift into the JS-SEZ.
They will likely become more wary of participating to early on the level and make a little money, according to Mr. Ang Yuit, president of the Association of Small and Medium Enterprises.
Through the Market Readiness Scheme and Enterprise Financing Scheme, EnterpriseSG assists local businesses looking to capitalize on opportunities in the JS-SEZ to help offset some of the costs associated with expanding elsewhere.