Is Southeast Asia becoming a dumping ground for Chinese goods? As exports flow in, the stakes get higher

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Southeast Asia is firmly in the forefront of China’s trade efforts, which analysts predict will only grow as the West’s growing geopolitical tensions and Trump 2.0 administration in the United States drag on.

This will make the benefits and drawbacks for the area more obvious, according to observers, which highlights the growing needed for nations to integrate a reaction to Beijing as they try to balance the scales. &nbsp,

Consumers in South Asian countries gain from the variety and relative accessibility of Chinese products on the one hand. But on the other hand, local sectors face an extremely fraught environment.

Local businesses are seeing eroding profit margins, plant closures, and widespread job losses, according to Doris Liew, an economist and assistant research manager at the Malaysian think tank the Institute for Democracy and Economic Affairs ( IDEAS ).

” Southeast Asia is grappling with the negative effects of China’s trade abundance, a problem that extends far beyond the region.

Analysts say the key is whether South Asian states can work together to navigate the landscape, especially given their varying stages of development and varying needs, as some South Asian states are considering countermeasures like anti-dumping tariffs. &nbsp,

” The reality is that the consequences are wildly diverse for specific industries … a single cross-region or even cross-industry result is so unlikely”, Diana Choyleva, chief analyst at Enodo Economics, told CNA.

Blasting UP THE EXPORT ENGINES

China’s import website has been operating at full capacity as its local market struggles with a sluggish property market and weak consumer demand. Exports make up around 20 per cent of the country’s gross domestic product ( GDP ).

Exports in 2024 grew 7.1 per cent year-on-year to 25.45 trillion yuan ( US$ 3.47 trillion ), exceeding 25 trillion yuan for the first time, according to China customs data released on Monday ( Jan 13 ). &nbsp,

” China consolidated its position as the world’s largest buying state in products”, said Wang Lingjun, assistant head of the General Administration of Customs, at a press conference on Monday.

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Thai cabinet approves controversial casino Bill

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BANGKOK: &nbsp, Thailand’s cabinet approved a controversial Bill on Monday ( Jan 13 ) to legalise gambling in designated “entertainment complexes” to boost tourism and create jobs. The proposed legislation would permit games to be built within resorts and other entertainment complexes, including water parks, hotels, and shopping malls. IllegalContinue Reading

Malaysia poised to lead e-commerce growth in Southeast Asia with strategic location and growing digital base

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  • Malaysia has overcome logistics challenges, develop to accomplish its potential
  • Singapore leads, with 59 % of experts citing system &amp, federal aid

Malaysia poised to lead e-commerce growth in Southeast Asia with strategic location and growing digital base

Malaysia is a key person in this modern rebellion, and Southeast Asia is experiencing a revolutionary e-commerce boom. Blackbox Research has launched its latest white paper, titled” Grasping the e-commerce option in Southeast Asia”, which sheds light on Malaysia’s proper position, abundant growth hopes, and the important part of public-private alliances in shaping the country’s modern economy.

In a statement, the business noted that the report highlights the key chances and issues shaping Malaysia’s e-commerce environment, based on 30 days of in-depth conversations with 17 leading voices in Southeast Asia’s e-commerce and logistics habitat.

To reach its full potential, Malaysia must overcome major logistics challenges and accelerate innovation. It added that overcoming these obstacles may be essential to enhancing the nation’s functions and strengthening its position as a chief in Southeast Asia’s expanding e-commerce market.

Paving the way for Malaysia’s e-commerce hegemony

According to researchers surveyed in the study, Malaysia has consistently held its position as a leading participant in Southeast Asia’s electronic business, ranking following in local e-commerce performance behind Indonesia and Thailand. Malaysia stood out for its strategic location, strong equipment, and reasonable business size, making it a healthy hub for local e-commerce trade. Singapore outperforms Malaysia in terms of promising growth, with 59 % of experts putting it first in e-commerce as a result of advanced infrastructure and strong government support.

Malaysia poised to lead e-commerce growth in Southeast Asia with strategic location and growing digital base

Malaysia poised to lead e-commerce growth in Southeast Asia with strategic location and growing digital baseAccording to our study, Southeast Asia’s e-commerce story is an intriguing one. The experts we spoke to were optimistic, and it’s easy to see why—gross merchandise value is on track to hit US$ 159 billion ( RM717 billion ) in 2024 and double by 2030″, said David Black ( pic ), CEO and founder of Blackbox Research. Malaysia has the chance to capitalize on its momentum and emerge as a regional leader. To make it happen, businesses need to juggle how they adapt to changing customer habits while staying resilient and cost-efficient”, he added.

” Logistics players will be essential to this, making quicker, more seamless connections between sellers and buyers through creative and affordable solutions. And let’s not forget policymakers—they have a big role to play in encouraging growth with smart regulations and focused investments”, Black said.

E-commerce thrives on efficient logistics
Logistics has become a crucial area that needs urgent attention as Malaysia focuses on strengthening its e-commerce ecosystem and strengthening its position as a regional leader. Significant obstacles remain as a result of high logistical costs and inconsistent delivery results among service providers, particularly those involving shipping between Peninsular and East Malaysia, which cause bottlenecks that affect efficiency and stifle growth in the sector.

Only six out of 17 industry experts believe that Malaysia’s current e-commerce framework supports sector development, according to findings from the white paper. Layered costs—courier charges, import taxes, and challenges posed by a weak currency —are cited as major barriers to cost competitiveness for businesses in the digital economy. Malaysia will have a strategic advantage in the increasingly competitive e-commerce landscape by adopting advanced logistics technologies, optimizing delivery routes, and establishing multi-region distribution centers.

Malaysia poised to lead e-commerce growth in Southeast Asia with strategic location and growing digital base

Public-private partnerships are essential for advancing e-commerce in Southeast Asia
Advancing Malaysia’s digital economy and e-commerce sector will require strong public-private collaboration. Inclusive dialogue is crucial, with policies shaped by input from all stakeholders, including e-commerce platforms, sellers, and logistics providers. Encouragingly, the government is already addressing these challenges, with deputy communications minister Teo Nie Ching highlighting in October 2024 that Malaysia’s courier and parcel market is projected to reach US$ 1.58 billion ( RM7.1 billion ) by 2025. She praised the development of infrastructure and urged loo.Malaysia poised to lead e-commerce growth in Southeast Asia with strategic location and growing digital basecal businesses can use government initiatives to expand their operations. Meanwhile, programmes like the Digital Free Trade Zones streamline cross-border trade and expand global market access for micro, small, and medium enterprises.

The study found that encouraging collaboration among stakeholders and adopting a unified approach will strengthen the ecosystem, encourage innovation, and promote sustainability as Malaysia prepares to become a leading regional e-commerce and logistics hub. This concerted effort is necessary to ensure Malaysia’s position as a potent leader in Southeast Asia’s digital economy while achieving inclusive, long-term growth.

Click here to learn more about Blackbox Research’s survey.

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Can Hong Kong task force in Thailand help prevent more ‘high-paying’ job scams?

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The Hong Kong task force, led by Undersecretary for Security Michael Cheuk, left for Bangkok on Sunday night. (Photo: South China Morning Post)
Secretary for Security Michael Cheuk, the Hong Kong work force, left for Bangkok on Sunday nights. ( Photo: South China Morning Post )

A senator has suggested that a visit by Hong Kong safety officials to Thailand can serve as a new notice to residents who are prone to high-paying employment scams. However, it is unlikely to result in the immediate return of those who are lured to operate in Southeast Asia, according to a lawmaker.

Following a sudden rise in missing persons reports over the past month, requests for assistance from victims ‘ families, and the recent rescue of mainland Chinese actor Wang Xing, who fell prey to a human trafficking network, security legislator Gary Chan Hak-kan argued the government had dispatched the task force.

The work army, led by Undersecretary for Security Michael Cheuk Hau-yip, left for Bangkok on Sunday nights. Its users plan to meet with representatives from the local government of justice’s anti-human trafficking committee and Thai authorities and the Chinese consulate it.

People “let their troops over” toward like high-paying jobs, Chan, a board member who helped subjects in 2022, said on Sunday, “perhaps after the initial information about such instances died down two years ago.”

” The government’s high-profile trip can assist with the existing cases while even reiterating that people should consider these issues before accepting these positions,” the government said.

He stated that he anticipated a close collaboration between the Security Bureau’s work force and the Chinese consulate in Bangkok.

The work force made up of soldiers from the Immigration Department, officers, and ministry staff can assist in cooperation and communication because” the ETO alone may not have enough political energy, labor, or security experience to manage these cases,” he said.

Another lawmaker and former safety minister, Lai Tung-kok, claimed that the bureau had taken the appropriate course of action and that the authorities may continue to strengthen their efforts to combat smear campaigns to stop more Hongkongers from becoming victims of syndicates.

” The]visit ] is not just a gesture, as shown by the high-level government working group that was sent”, said Lai.

He added that Thai officials now felt a strong need for the solution and that they were confident in their ability to deal with it. He had faith in seeing good outcomes.

The authorities received 46 requests for assistance from Residents who were incarcerated in buildings in Myanmar and Cambodia between 2022 and 2023.

The subjects reportedly received offers for high-paying work and lodging in the Southeast Asian nations.

Their documents were reportedly confiscated upon arrival, and they were then sold to various cartels and forced to work in locations where phone or online scams were being run.

Patients were kept safe by people carrying guns and electrical prods, but they were unable to flee.

Of the 46 patients, 43 had made it back to Hong Kong properly. After being saved, the three other people turned down additional help.

He claimed that thieves used more sophisticated methods to entice people to Southeast Asian nations as Cheuk departed Hong Kong for Bangkok on Sunday during a pre-trip presentation.

” They asked people to ‘ get products’ to Taiwan, Japan or abroad. However, he claimed at the last minute, they had informed them that East Asian places had been changed.

He added that none of the survivors claimed they had been picked up under prearranged situations but were not abducted while they were traveling.

Cheuk added that while the syndicates in 2022 primarily focused on the Myanmar border with Laos, they nonetheless operated in northeastern Thailand, which borders Myanmar.

I want to caution Hong Kongers against traveling near Thai, Myannar, or Lao edges because I believe the cartels are operating in turbulent locations.

Secretary for Security Chris Tang Ping-keung revealed in early December that 23 Hong Kongers had reported being confined to these South Asian materials in 2024.

The number increased to 28 by Sunday, with 12 also missing.

The victims claimed to remain healthy and able to communicate with their people and the work force in some of the remaining 12 cases, which ranged from 21 to 43, and engaged reports of restrictions on freedom of action.

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PropertyGuru announces leadership transition and a new board

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  • In March 2025, Lewis Ng may assume the position of CEO of the company.
  • Hari Krishnan may move down as CEO to do new hobbies.

PropertyGuru announces leadership transition and a new board

PropertyGuru Group, Southeast Asia’s leading property technology ( proptech ) company, has announced the change of CEO and the appointment of a new board of directors.

After a century of strong leadership and notable accomplishments, Hari V. Krishnan has made the decision to step down as party CEO and seek new pursuits. He has played a significant role in the transformation of PropertyGuru from a company to the leading proptech organization in Southeast Asia.

Hari has played a key role in achieving significant accomplishments, including establishing a recognizable place as the market leader in Southeast Asia. He oversaw PropertyGuru as it created new businesses and answers that addressed the overall consumer trip. He oversaw numerous financing rounds, including the New York Stock Exchange’s public listing, and led the business until EQT Private Capital Asia successfully acquired it.

Hari will continue to be strongly involved with PropertyGuru as the new CEO’s senior advisor to the table once the new CEO is in place.

In March 2025, Lewis Ng ( pic ) will step down as PropertyGuru’s CEO. A trained head with over two decades of experience across Asia and the tech sector, Lewis has held leadership responsibilities at global companies like Apple, TripAdvisor, and Southeast Asia’s rainbows Carousell and PropertyGuru.

Ng led the group’s progress and helped create a customer-centric tradition while serving as the group’s managing director of Singapore and key business officer from 2014 to 2019. Most recently, as chief operating officer at Seek Asia, he transformed the country’s leading work industry into a best-in-class job system. Additionally, he serves as a board chairman at Zhaopin, a well-known career platform in China.

With knowledge stretching sales, customer services, method, and operations, Ng has scaled businesses from the ground up, transformed start-ups into unicorns, and driven effective, robust growth in well-established companies. Ng is uniquely positioned to guide the company into its upcoming growth and innovation, in addition to his prior work at PropertyGuru.

In contrast, Trevor Mather has assumed the role of chairman of the board of directors. He has extensive experience scaling market businesses, having formerly served as the CEO of Auto Trader, where he successfully transformed the company into a completely digital platform and made it a head in the UK automotive market. Matthew is already the president of Baltic Classifieds Group, which further demonstrates his experience in leading and expanding market businesses.

PropertyGuru board of directors include:

  • Janice Leow, head of EQT Private Capital Southeast Asia and a member of the expert team for EQT Private Capital Asia
  • Ed Williams, creator and ex-CEO of UK’s leading house marketplace- Rightmove, president of Trade Me in New Zealand, and ex-chairman of Auto Trader

Hari explained his decision, saying,” After a remarkable decade, I’ve decided that it’s time for me to pursue new interests and change the business to new leadership. I’ve had the honor of working with incredible teams to accomplish some major milestones while creating a culture that promotes participation and innovation, which I consider to be our competitive differentiation.

” I have known Ng for more than ten years and had the honor of working with him for more than three times. I have faith that he will take a new perspective to our company while remaining profoundly in tune with our values and perception. I look forward to guiding him and the staff through this and subsequent move.

Ng said,” I am thrilled to return to PropertyGuru, a business that has always held a special place in my heart. During my previous time around, I experienced personally the amazing culture of collaboration, technology, and customer-centricity that sets PropertyGuru off. I’m excited to build on Hari’s solid foundation as we look to the future because the company’s growth over the past ten years has been outstanding. I’m honored to be the leader of PropertyGuru’s upcoming chapter and to collaborate with our brilliant teams to maintain fostering development and delivering value to our customers in Southeast Asia.

” PropertyGuru is a powerful and innovative company that has firmly established itself as Southeast Asia’s top proptech system, with a proven track record of delivering benefit and fostering progress,” Mather continued. I’m thrilled to work alongside the table and the brilliant management team to keep developing on this speed and looking for fresh opportunities for the party. I want to acknowledge Hari’s contributions over the past ten years, which have laid a solid foundation for upcoming success. I’m confident that PropertyGuru will achieve even greater milestones in the years to come with Ng’s resumption as CEO, who will bring his vast experience and enthusiasm for the company.

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Commentary: Vietnam’s high-speed rail hits the brakes on foreign funding

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Some experts wonder if a job like this can be funded solely by public funding. Given General Secretary To Lam’s plans to merge and remove some state and gathering agencies, as well as operational paralysis brought on by the powerful crackdown on corruption, these concerns are not false.

Vietnam is identify the US$ 13.38 billion Long Thanh Airport as a victory history in its emerging, separate approach to network. What will be the biggest airports in Vietnam, serving as a local cargo and passenger hub, is the main buyer, according to the state-owned Airports Corporation of Vietnam. Almost a year earlier than expected, the project is on schedule to be finished.

Should there be a need for international support, the door is open for the high-speed rail project, with safeguards in place to prevent giving up too many autonomy. Prime Minister Pham Minh Chinh is in charge of issuing government bonds and mobilizing ODA and international money in case of delays under the investment strategy.

To ensure Asian hands continue to control the high-speed rail’s operations, preservation, and long-term management, foreign bids may include commitments to technology transfer and human resource education. Hanoi has previously requested that Vietnamese citizens receive scholarships for studying railroad executive there.

To ECONOMIC INDEPENDENCE

It is too early to determine the president’s method. May it adopt a hybrid technique that combines domestic and foreign sources, or will it only rely on local sourcing? The protections, however, suggest that the project is being prioritized over foreign investors and businesses.

Infrastructure projects are seen as a catalyst for the Vietnamese Communist Party’s plan to become a high-income state by 2045. Vietnam invests almost 6 % of GDP, the highest percentage in Southeast Asia, in system development, including the optimistic upgrade of its 1, 290 miles of federal highway to 5, 000 kilometres by 2030.

The benefits of high-speed bridge are self-evident. It is anticipated to contribute an additional 0.97 % to GDP growth and provide members with safe, effective ways to travel the nation. Vietnam may follow a similar strategy to maintain its level of corporate autonomy over the task.

Vietnam’s involvement with high-speed rail may also contribute to facilitating a stronger local railroad link between the Greater Mekong Subregion. Regional companions might try to emulate its self-sustainable design.

Vietnam’s high-speed road job represents more than just facilities development- it signals a fundamental change in the nation’s financial strategy. Vietnam is taking a bold new path toward real financial independence after three years of properly balancing foreign affects.

Whether this ambitious self-funding type proves responsible for a US$ 67 billion project remains an open question, and achievement is far from guaranteed.

However, if Vietnam does well, its strategy may change the way developing countries approach major infrastructure projects, giving them a fresh way to achieve proper freedom that deviates from the traditional constraints of foreign funding.

Nicholas Chapman is a Researcher at Tohoku University, Japan. This remark initially appeared on East Asia Forum.

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Japan to give Indonesia high-speed patrol boats in security deal

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In response to China’s growing assertiveness, Japan will offer Indonesia two high-speed patrol boats, Prime Minister Shigeru Ishiba announced on Saturday ( Jan 11 ).

Ishiba made the commitment while traveling to Jakarta, where he met with Indonesian President Prabowo Subianto to discuss a variety of diplomatic problems.

” We agreed on establishing working-level military sessions on our sea security, including on defence technology professional assistance”, Ishiba was quoted as saying in a joint declaration.

” We furthermore agreed to… offer high-speed patrol vessels through Official Security Assistance, which would be our primary with Indonesia”.

He said the two states also agreed to cooperate in decarbonised energy industries, such as thermal electricity, gas, acid, and biofuels.

Ishiba and Malaysia’s premier minister Anwar Ibrahim had meetings in Kuala Lumpur before leaving for Jakarta.

” For our foreign policy, strengthening cooperation with Southeast Asia is one of the biggest objectives”, Ishiba said.

Japan has been strengthening surveillance relations in the area with US support as it fights China. &nbsp,

Beijing claims almost all of the South China Sea, which has irritated neighbors who claim to cross some of their special economic areas.

The Philippines, which is locked up in regional disputes with Beijing, is now receiving tools and other support from Tokyo.

A crucial defense alliance between the Philippines and Japan, which allows them to deploy soldiers on each other’s ground, was ratified next year.

Ishiba’s second official status visit since taking office in October is to Malaysia and Indonesia.

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Lack of skilled labour, Causeway congestion among concerns of local firms moving to Johor-Singapore SEZ

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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. &nbsp, &nbsp,

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.

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Singapore-Malaysia SEZ promises a production powerhouse – Asia Times

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Sixty years ago, Singapore’s parting from Malaysia marked the terrible collapse of a strong social experiment.

What started out as a coalition with the promise of a shared future and a typical business sank under the mass of conflicting social goals and growing regional conflicts. For Singapore, the 1965 cut was a disturbing moment of judgment, propelling the budding state onto the route of independence as a little city-state.

This year, as Singapore celebrates its SG60 diamond jubilee, the Johor-Singapore Special Economic Zone ( JS-SEZ ) offers an opportunity to rekindle that partnership at a time when political-level bilateral ties are on notably solid footing.

Formalized at this year’s 2025 diplomatic leaders ‘ retreat, the JS-SEZ represents a landmark engagement, combining Singapore’s technological and financial skills with Johor’s vast territory, work and natural resources.

Spanning 3, 571 square meters, or over four times the size of Singapore, the corridor aims to reshape Southeast Asia’s financial environment. Singapore may make use of its expertise in government and innovation, while Johor, Malaysia’s state, will make the most of its production and resource advantages.

The JS-SEZ arrives at a key time. Between January and November 2024, bilateral trade between the two countries increased by 6.7 % to US$ 78.59 billion, up from the same time in 2023. The JS-SEZ is expected to develop on this speed.

Malaysia has set ambitious JS-SEZ goals, projecting that by 2030 the zone will contribute$ 35.5 billion annually to its GDP – nearly 5 % of its current economic output.

Singapore’s GDP growth is reasonable, hovering around 0.2 % over the next five years, but its wider benefits come from strengthening relationships with its closest neighbor, aligning its corporate goals, and enhancing its relevance in worldwide trade and development.

Taiwanese firms, especially mid-sized businesses, are now exploring Johor as a cost-competitive center for operations and production that complements existing high-value activities such as R&amp, D and local headquarters within Singapore.

Opening substitutability

The JS-SEZ stands out for its ability to unlock complementarities that possibly neither nation could accomplish on its own. These synergies fall into four large areas, particularly supply chain communication, transportation, movement of people and convenience of doing cross-border company.

Firstly, Singapore’s semiconductor industry, which accounts for around 7 % of its gross domestic product ( GDP ) and contributes more than 10 % of global semiconductor output and about 20 % of global semiconductor equipment production, will benefit from Johor’s budding assembly and testing capacity.

This collaboration could lead to a regional supply chain that is as resilient and close to the Association of Southeast Asian Nations ( ASEAN ) markets as opposed to China’s Shenzhen.

Meanwhile, Johor’s renewable energy resources, such as solar and biomass, can power energy-intensive data centers, enabling firms in Singapore to expand digital infrastructure while advancing a global green energy agenda.

Second, Johor is a prime location for the expansion of Singapore-based green technology and food manufacturing companies due to its abundant land and affordable prices.

ASEAN’s booming e-commerce market, projected to exceed$ 300 billion by 2025, underscores the importance of efficient logistics. With its proximity and infrastructure, the JS-SEZ is well-positioned to become a regional logistics hub, enabling both nations to outpace regional competitors.

Thirdly, unlike previous initiatives such as Iskandar Malaysia, the JS-SEZ prioritizes connectivity. The Rapid Transit System (RTS ) Link, set to open in 2026, will reduce travel time between Johor Bahru and Singapore, easing congestion and enhancing labor mobility. The goal of streamlined cross-border flows, which includes a passport-free QR code system for employees and digitized customs procedures, is to significantly lower business transaction costs.

Finally, governance reforms underpin the SEZ’s design. Addressing previous grievances about bureaucratic delays, a one-stop business center in Johor will handle investment approvals.

Special tax incentives, including lower corporate rates and personal income tax relief for skilled professionals, are designed to attract high-value industries and top global talent. If successfully implemented, these measures will make the JS-SEZ a magnet for investors.

‘ Merger’ reimagined

The JS-SEZ represents a reimagining of the Singapore-Malaysia relationship as a partnership grounded in mutual interest and economic foresight, moving beyond the potential the short-lived 1963 Malaysia-Singapore” Merger” had envisaged.

It enables both sides to transcend national limitations. In a world where protectionism, economic nationalism, and tighter trade restrictions are all at their height, it is a bold statement of confidence in economic collaboration to promote growth.

For Singapore, the zone offers a strategic opportunity to break through physical and structural limitations, charting the course for its upcoming growth, strengthening ties with its closest neighbor, and under the leadership of Prime Minister Lawrence Wong.

For Malaysia, it has the potential to make Johor a global hub for production, spurring regional development, and form part of a partnership that was established while ASEAN’s Prime Minister Anwar Ibrahim was in charge.

The JS-SEZ offers both countries a chance to enhance their respective value propositions where the sum proves more than its parts, as well as a fresh perspective to rewrite their shared story as complementary partners united by shared goals for themselves and the region in an increasingly complex global landscape.

The greater competition we face is not between ourselves within ASEAN, but rather with other countries in the region, according to Singapore Prime Minister Wong. ASEAN has to come together, look at ways to enhance our value proposition, and be competitive together”.

History may not repeat itself, but it often rhymes. The JS-SEZ could finally bring Singapore and Malaysia the shared prosperity their people have long desired.

Marcus Loh serves as the director of Temus, a Singapore-based company that offers digital transformation services, and oversees Step IT Up, its award-winning career conversion program.

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