Johor-Singapore SEZ emerging as key engine for high-value investments: Minister

LocalBusiness & Finance
6 Feb 2026 • 8:12 AM MYT
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KUALA LUMPUR: Early investment figures on the Johor-Singapore Special Economic Zone (JS-SEZ) for 2025, with full-year data to be reported in March,are expected to confirm it as one of Malaysia’s key growth engines.


Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir said the JS-SEZ is becoming a key engine for high-value investments, stronger cross-border value chains and better-quality jobs for Malaysians.


“Looking ahead, the full-year approved investment figure for 2025 will be reported in March 2026, in line with previous years. Overall, this performance reinforces our confidence that the JS-SEZ is becoming a key engine for high-value investments, stronger cross-border value chains, and better-quality jobs for Malaysians,” he said at the Malaysia Economic Forum 2026 (FEM 2026) yesterday.


Akmal said the JS-SEZ has shown investment performance that “remarkably exceeds initial estimates”.


Based on the Malaysian Investment Development Authority Third Quarter 2025 Investment Performance Report, the zone attracted RM68 billion in approved investments in the first nine months of 2025.


“This represents 75% of Johor’s total approved investments over the same period,” Akmal said, adding that the JS-SEZ Investment Blueprint and Masterplan will be unveiled by end-March to guide development, enhance coordination among stakeholders, and provide greater clarity to investors on priority sectors, infrastructure rollout and implementation pathways.


Furthermore, Akmal said, the macro data shows that Madani is making a tangible difference with advance estimates, Malaysia’s economy grew by 4.9% in 2025, reflecting the resilience of the services, manufacturing and construction sectors.

“The services sector remains the largest contributor to GDP, while manufacturing and construction continue to show robust performance.”


He added that the fiscal performance remains sound with the budget deficit targeted to decline to around 3.8% of GDP in 2025, down from 4.1% in 2024, demonstrating disciplined public finance management.


Through trade, investment and supply chains, Akmal said, Malaysia’s economy is also increasingly integrated with the global market. “The total approved investments for the nine-month of 2025 reached RM285 billion, signalling strong domestic and foreign investor confidence.”


Yet, even with these achievements, he said, the global and regional landscape presents uncertainties.


“Inflationary pressures, rising interest rates, geopolitical tensions, and the rapid pace of technological change continue to affect markets and households alike.”


Artificial intelligence, automation, and digital transformation are reshaping industries, while regional neighbours are accelerating reforms to attract talent and investment, he added.


“In this context, Malaysia must not only respond but stand tall and lead.”
Akmal said FEM 2026 with the theme “Accelerating Growth, Advancing Malaysia”, is anchored on the ambitions of the 13th Malaysia Plan.


“RMK13 will shape national development and economic growth over the next five years, providing a clear roadmap for infrastructure, human capital, innovation, industrial advancement, and sustainability.”


Akmal said Malaysia continues to see strong interest from investors, corporates, SMEs and the wider public in attending FEM.


“I was told that we received close to 5,000 registrations, with strong representation across the ecosystem. This includes institutional investors managing a combined US$7.3 trillion (RM28.8 trillion) in assets under management, as well as corporates with a total market capitalisation of US$226 billion.”


He said the FEM plays a role by bringing stakeholders together to generate evidence-based solutions that can be translated into actionable recommendations for national planning and the FEM 2026 will focus on priorities that will shape our economy for years to come.


“First, how AI and technology can raise productivity, improve public services, and create new industries, second, how the energy transition can progress while keeping energy affordable and reliable, third, how health and housing reforms can strengthen equitable access and quality living standards, fourth, how trade and investment can remain competitive, attract high-value capital, and expand exports and lastly how we prepare a future-ready workforce, addressing demographic realities such as an ageing population while nurturing future talent,” said Akmal.