Commentary: As Johor-Singapore SEZ plans accelerate, who stands to benefit?

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Since a Memorandum of Understanding was signed between Singapore and Malaysia in January, the proposed Johor-Singapore Special Economic Zone ( SEZ ) has sparked a lot of excitement.

New Singapore Prime Minister Lawrence Wong made a note of the potential of the SEZ during his introductory trip to Malaysia on Wednesday ( 12 July ), stating that it could bring significant economic benefits to both nations.

” People harp a lot on the competition ( between our two economies ), but really, we are complementing one another”, said Mr Wong.

His rival, Mr Anwar Ibrahim, said that strategies for the area are pretty close to being finalised. &nbsp, &nbsp,

Details of the SEZ’s geographic location and the certain economic sectors are still being worked out, just like the prospective” Shenzhen of Southeast Asia” is described as. The Malaysia and Singapore working groups are scheduled to hold a number of meetings this month to provide more precision. A fully functional deal is anticipated to get signed in September. &nbsp,

When Malaysia and Singapore made their plans to work in the SEZ, people began to question the types of businesses and industries that would occupy and prosper in this new area. Johor is proposing 16 economic areas as part of the area, including electrical and electronics, health, aircraft and developing.

Chief Minister Onn Hafiz Ghazi even stated that the condition government has proposed the area to stretch across six regions, including Johor Bahru, Iskandar Puteri, Pasir Gudang, Pontian, Kulai, and Kota Tinggi, encompassing a land mass of 3, 505 square kilometers, during a meeting of the Johor state assembly next quarter. This is more than four times the size of Singapore, and almost double the size of Shenzhen. &nbsp, &nbsp,

Both Shenzhen and Johor have abundant natural resources and property, as well as exposure to a fresh, expanding labor. Both are also carefully located, being close to major financial centers- Hong Kong in Shenzhen’s situation, and Singapore for Johor. It is possible for Johor to imitate Shenzhen’s success in the near future with essential similarities between Johor and Shenzhen and the expansion of the SEZ. &nbsp,

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Commentary: Visa waiver deal puts Singapore in good stead to attract the coveted Chinese tourist

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China’s travel agency giants expect visa exemption to keep Singapore attractive beyond the seasonal jumpstart.

“If we look at the areas that have been doing very well over the past year, the first are GCC (Gulf Cooperation Council) countries in the Middle East. Qatar and Dubai have favourable visa policies and make arrival convenient; other nations have online visa application procedures that are convenient and easy.

“Now that Singapore and China will be implementing reciprocal visa-free travel, we certainly see more Chinese travellers choosing to visit Singapore due to the increased convenience,” Mr Edmund Ong, general manager of Trip.com Singapore, told me.

MIRAGE OF CHINA’S REVENGE TRAVELLERS

It may appear, wishfully, that China is finally unleashing its revenge travellers in full force. But China’s economic troubles are too big to ignore.

The slow return of outbound travel was largely attributed to China’s disappointing economic restart coming out of the pandemic. As of September 2023, Chinese outbound tourism expenditure was still down 18 per cent from pre-pandemic levels, according to the United Nations World Tourism Organization.

Economic forecasts for 2024 have only gotten worse, with various experts projecting China’s GDP growth to slow from 5.2 per cent in 2023 to between 4 and 4.6 per cent in 2024.

The country cannot conceivably get out of its litany of economic troubles any time soon: A serious deflation spiral, record drops in salaries, a property market crisis, high youth unemployment rates – and the list goes on.

THE RISE OF THE PRUDENT TRAVELLER

In this climate, perhaps the foremost question is not where, but how the Chinese would be travelling in 2024.

Already emerging is a picture of the prudent Chinese traveller, mediating economic anxieties while they vacation – whether by planning their academic journey overseas, or hitting multiple destinations to stretch the flight buck.

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