Johor-Singapore SEZ: Businesses say Malaysia’s ‘stickier’ government boosts their confidence in project, but brain drain remains a risk

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Lennon Tan, president of the Singapore Manufacturing Federation, told CNA that he is optimistic that the SEZ wo n’t turn out the same way as the SIJORI Growth Triangle and the Iskandar Malaysia projects because of the intensive business consultation from government officials this time round.

” There is a lot more personal business conversation, business assessment and this is true for both factors of the authorities”, said Mr Tan.

There are “very intentional efforts by high-profile state officials on both sides to support and advance the SEZ initiatives,” he continued.” There is reason to be optimistic that it will succeed,” he continued. &nbsp, &nbsp,

According to Mr. Tan, who is the CEO of the data protection agency Adera Global, some manufacturing companies in Singapore are struggling with rising costs and prices as a result of the scheduling of the SEZ plan. &nbsp,

The SEZ is a new avenue for organizations to shift some of their operations to Johor, maintain attractiveness, and maintain the exact cost structure as it once had because” smaller firms are managing endurance problems with these challenges,” he continued. &nbsp,

” Companies are waiting for more information on the SEZ… but I think they remain really, very strong and extremely interested”, said Mr Tan. &nbsp,

Mr. Jason Su, managing director of the Singapore venture capitalist firm Farquhar, stated to CNA that he is positive that the SEZ may be” powerful” in part because of the support of the national administration led by Mr. Anwar, which he views as a technical pro-business management. &nbsp,

Mr. Anwar has received praise from regional business leaders for creating a conducive environment that encourages foreign investment.

During his tenure as prime minister, multinational corporations ( MNCs ), including Microsoft, Nvidia and Alphabet have all announced partnerships and investments in Malaysia. &nbsp,

US tech giant Microsoft pledged a US$ 2.2 billion investment in artificial intelligence ( AI ) and cloud computing in May to help develop the country’s AI infrastructure.

Additionally, Nvidia’s CEO Jensen Huang jokingly referred to Mr. Anwar as the” AI Prime Minister” and praised the administration for its “excellent infrastructure” to advance AI development in the region during his trip to meet with Prime Minister Anwar in December 2023. &nbsp,

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Malaysia passes new Bills to create duty-free island Pulau Satu in Johor’s Forest City

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SINGAPORE: A 770-acre archipelago in Johor’s besieged Forest City may actually be a duty-free area, which will see it like special tax provisions to increase economic growth in the area. &nbsp,

This comes after Malaysia approved five Bills on Wednesday ( Jul 17 ) for the island of Pulau Satu, which is a part of the blighted US$ 100 billion development. &nbsp,

The bills include changes to sales and service revenue laws, taxation, which the government levies on the purchase of a particular good or service, and other laws. They were approved by Deputy Finance Minister Lim Hui Ying for a second reading and passed in a voice vote. &nbsp,

They are the Customs ( Amendment ) Bill 2024, Excise ( Amendment ) Bill 2024, Free Zones ( Amendment ) Bill 2024, Sales Tax ( Amendment ) Bill 2024, and Service Tax ( Amendment ) Bill 2024.

When the appropriate regulations are amended, Pulau Satu may join the likes of another duty-free islands in the country for as Labuan, Langkawi, Tioman and Pangkor.

According to local media reports, Mdm Lim claimed that Pulau Satu would be subject to the current laws governing another duty-free islands, including the requirement for visitors to spend at least two days there before being eligible for duty-free products. &nbsp,

Mdm Lim added that chocolates, perfumes, drinking and fragrance would be free from work.

She added that the Bills are intended to promote business, draw investments, and encourage regional economic activity as part of Putrajaya’s plans to establish a special economic zone in Forest City to promote economic growth and investment in Johor, as reported by Free Malaysia Today. &nbsp,

Several members of parliament ( MPs ) took part in the Bills debate, which was met with some back and forth questions. &nbsp,

Mr Jimmy Puah, member of the People’s Justice Party ( PKR ), which is part of the ruling Pakatan Harapan ( PH) coalition, suggested expanding the list of duty-free items to include electronics and other popular products to encourage more purchases by Singaporeans.

According to nearby media, he even suggested lowering the 48-hour be need to just one night in order to give the Lion City a competitive edge over the Lion City.

Forest City is currently categorized as a duty-free place, which it received in 2016 With the current Bills article, Pulau Satu’s position will shift and it will be gazetted as a duty-free area. &nbsp,

A representative from Forest City’s Chinese designer Country Garden told CNA that this will lessen the stringent requirements for income enables and applications for the purchase of duty-free products. &nbsp,

Under duty-free area laws, customers can buy up to three crates of beer ( 24 cans per crate ), five litres of liquor, and three cartons of cigarettes ( 200 sticks per carton ) at duty-free prices from designated complexes. &nbsp,

Just within Forest City and not taken out, had alcohol and cigarettes be consumed.

Yet, local media has recently reported a flurry of prostitution of duty-free items out of Forest City and reselling them at marked-up costs, labelling the growth a” sneaking hotspot”.

Mr. Anwar made the announcement last August that the Forest City project would be designated as a special financial zone to boost the Iskandar Malaysia region’s economy during a visit to Johor. &nbsp,

In January, Singapore and Malaysia signed a Memorandum of Understanding on a Johor-Singapore special economic zone ( SEZ ), aiming to boost cross-border economic connectivity. &nbsp,

However, the Forest City project has met hurdles, including fears over lagging development and Country Garden’s financial issues. &nbsp,

In response to the development’s slow pace of construction and low occupancy rates for its residential properties, various media reports referred to the project as a “ghost town.” &nbsp,

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Sri Lanka to save US billion from bilateral debt deal

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COLOMBO: Sri Lanka will save US$5 billion following the restructure of its bilateral debt, much of which is owed to China, through slashed interest rates and longer repayment schedules, the president said Tuesday. The island nation defaulted on its foreign borrowings in 2022 during an unprecedented economic crisis that precipitatedContinue Reading

Sri Lanka signs debt deal with creditor nations in Paris

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Sri Lanka’s president’s office announced on Wednesday ( Jun 26 ) that it had reached a deal with creditor nations to restructure about US$ 5.8 billion in bilateral debt, in a move that would help stabilize its hit-crisis-hit economy. The Official Creditor Committee ( OCC), which is co-chaired by Japan,Continue Reading

Malaysia, China mark 50 years of ties with deals on development, durians

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During a visit by Chinese Premier Li Qiang to commemorate 50 years of diplomatic ties, China and Malaysia signed a number of agreements on Wednesday ( Jun 19 ).

Following his appearance in Kuala Lumpur on Tuesday, Li and Anwar Ibrahim met in the administrative capital of Putrajaya.

” China is ready to operate with Malaysia”, Li said in a speech, adding that target areas included development strategies, socially valuable co- operation, and exchanges to market the building of a China- Malaysia community.

After Wednesday’s finished- entry meeting, Li and Anwar witnessed the signing of more than a dozen pacts on co- operation in areas ranging from the modern economy to natural development, housing, tourism, and communications, among others.

The fresh five- year agreement that runs until 2028 provides for corporate cooperation in areas like as trade and investment, agriculture, manufacturing, infrastructure and financial services, a statement after the meeting showed.

The five-year program was initially introduced in 2013;

China also consented to the importation of raw durian from Malaysia once it meets hygiene standards, according to the statement.

Malaysia, one of the world’s biggest exporters of the curly, smelly fruit, was originally allowed to send only the total iced fruit and its products to China, with export valued at RM1.19 billion ( US$ 253 million ) in 2023.

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