Speed and clarity essential for success of JS-SEZ, say trade groups

Speed and clarity essential for success of JS-SEZ, say trade groups

Two Johor business organisations say quick travel time between Johor and Singapore is critical to the success of the special economic zone.

anwar-ibrahim-Lawrence Wong
Prime Minister Anwar Ibrahim and his Singapore counterpart Lawrence Wong said they were ‘very close’ to achieving full agreement on the Johor-Singapore Special Economic Zone. (Bernama pic)
JOHOR BAHRU:
Faster commute across the Johor Straits as well as clarity on policies and plans are essential to ensure the success of the Johor-Singapore Special Economic Zone (JS-SEZ), according to two Johor business groups.

The Small and Medium Enterprises Association (Samenta) and the Johor Indian Business Association (Jiba) said travel time between Johor and Singapore should be kept within 30 minutes to an hour to meet the need for a quick turnaround when conducting business.

Samenta southern chapter chairman Ryan Lee said travel time should not exceed an hour, “even during peak hours”.

Last week, Prime Minister Anwar Ibrahim and his Singapore counterpart Lawrence Wong announced that both countries were already “very close” to a final agreement on the JS-SEZ.

Wong also expressed optimism that with “good master planning, clear and consistent policies around the SEZ and the rapid transit system (RTS) coming online”, the initiative will yield economic benefits for both countries.

Lee, who travels to Singapore three or four times a week on business, told FMT “reasonable travel times” are important to him.

He said that on “lucky days” he would be able to clear customs and immigration checkpoints within 30 minutes during non-peak hours.

“My worst experience was during a festive period when it took me eight hours just to cross the border,” he said.

Ideally, he said, travel time each way should be done in no more than an hour.

“Thirty minutes would be best,” the Johor-based businessman said.

Jiba president P Sivakumar cautioned that the government’s ambition to make the JS-SEZ a regional investment hub will be harmed if travel time exceeds 40 minutes each way.

“After all, mobility is crucial when running a business,” he told FMT.

“If there is a long delay (at border crossings) people will miss meetings, the supply chain will be affected and the necessary materials won’t arrive on time,” he said.

“Businesses will incur losses,” he added.

About 300,000 Malaysians travel across the Johor Straits daily, making it one of the busiest international border crossings in the world.

Malaysia and Singapore are taking steps to ease the congestion, including through the introduction of the RTS, a 4km railway that can ferry more than 10,000 passengers every hour.

This will shorten the commute to six minutes.

The project is expected to be completed in 2026.

Putrajaya has also rolled out the use of QR codes in place of passports at the Sultan Iskandar Building and Sultan Abu Bakar Complex checkpoints on a three-month trial.

Passport-free travel is among the initiatives that Malaysia and Singapore hope to implement in support of the JS-SEZ.

Engage local businesses to ensure JS-SEZ’s success

Separately, Sivakumar urged the Johor government to explain its policies and plans for the SEZ to local businessmen.

He said previous investment initiatives in Johor that led to foreign businessmen using imported resources “from nail to hammer” to set up shop instead of giving local businesses the opportunity to participate had raised concerns locally.

“We hope the government will engage with local business organisations to discuss their strategies and plans. What do we get? How are we going to benefit?” he said.

Sivakumar said local participation in special economic zones is a matter of great importance.

“Such engagement should start soon. It must be a win-win situation for local businesses,” he added.

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