Johor seeks to caption JS-SEZ boom
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Johor aims to transform the RM132 billion investments in the Johor-Singapore Special Economic Zone (JS-SEZ) into higher-paying jobs and robust local businesses, according to the 2027 Budget. State Investment, Trade and Consumer Affairs committee chairman Lee Ting Han emphasized that the success of Johor's economic growth should be gauged by the progress of local businesses alongside multinational investors and whether residents gain better-paying positions.
He applauded federal initiatives to lessen the tax burden on small and medium-sized enterprises (MSMEs), enhance financing accessibility, and enhance technical and vocational education and training (TVET). Lee expressed confidence that these measures would enable local firms to secure a larger role in industrial supply chains. As of June 2025, the JS-SEZ had attracted RM132 billion in investments, while the Nexus Sedenak industrial hub is slated to draw RM12 billion in investments and create 45,000 jobs, as outlined in the 2027 Budget.
The JS-SEZ masterplan and blueprint are projected to be unveiled by the end of the year, alongside a proposed task force to negotiate with companies in critical sectors. Lee stressed the need for Johor's MSMEs to transition from supporting roles to becoming high-value suppliers to multinational companies entering the state. He added that easier access to financing, technology, and productivity-improving equipment would aid Johor businesses in scaling up and competing for contracts within the JS-SEZ.
The budget earmarks RM8 billion for TVET across various ministries, including RM3 billion through Human Resource Development Corp for three million skill-training opportunities and RM500 million through the Skills Development Fund Corp for training at accredited institutions. Johor's demand for skilled workers is projected to encompass semiconductors, advanced manufacturing, data centers, logistics, the digital economy, and green energy.
Lee reiterated that the Johor Talent Development Council would collaborate with educational institutions and industry partners to synchronize training with employers' requirements. The budget also identifies a 1-gigawatt hybrid energy project in Johor by UEM Lestra Bhd, as part of an RM1 billion investment package that comprises energy storage at Kuala Lumpur International Airport.
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