The establishment of a Johor-Singapore special economic zone (SEZ) in Johor could be a key driver for growth in local economy, including boosting job opportunities and infrastructure development.
Real Estate and Housing Developers Association Malaysia (Rehda) Institute chairman Datuk Jeffrey Ng Tiong Lip highlighted key economic growth opportunities in the country through numerous developments between Johor and neighbouring Singapore.
“Currently, approximately 900,000 Malaysians work in Singapore, where around one-third (300,000) Malaysians travel across the Johor-Singapore Causeway on a daily basis.
“Many of them work in Singapore, lured by favourable exchange rates. The SEZ could contribute to better job opportunities in the Johor region, where some Malaysians could be employed in our own country,” he said.
The jobs, he added, could be in the industrial and manufacturing sectors, research and development sectors and service sector employment.
The establishment of the SEZ, he said, may also boost infrastructure development in the region, including transportation, utilities, and communication networks, which in turn help the local economy including the controversial Forest City.
Ng said it is believed that if the authorities decide to revive the High-Speed Railway or pursue additional crossing avenues, besides the RTS Link Project (Woodlands in Singapore – Bukit Chagar in Johor Bahru), it would have further positive effects.
The current RTS Link Project, is expected to have a capacity of 10,000 passengers per hour, per direction, with an approximate ridership of 40,000 passengers per day.
Comparing Johor-Singapore SEZ to the now-successful Shenzhen-Hong Kong model, Ng said he hopes to see similar medium- and long-term future potential growth in Johor under the Madani government.
“In 1980, when Shenzhen was announced as China’s first special economic zone, it was originally a small village with approximately 330,000 residents.
“Four decades later, in 2022, Shenzhen’s permanent resident population reached 17 million and its GDP was 3.24 trillion yuan (US$475 billion or approximately RM2.2 trillion),” he said.
Positive economic outlook for 2024 if policies executed well
Ng said Malaysia’s economic outlook for 2024 is set for expansion and growth, depending on execution of domestic policies, foreign investment, and governance structures by the government.
He said Malaysia is at a critical juncture, amidst global headwinds and geopolitical uncertainties affecting the external world market.
“The global economy is expected to slow slightly in 2024 as concerns remain over high levels of debt and uncertainties over interest rates.
“Monetary policies, interest rates, and the overall health of financial institutions will impact investment patterns, access to capital, and the cost of doing business in Malaysia,” he said during his opening keynote address during Rehda’s annual CEO Series 2023 (Economy & Business Forum) held at the Le Meridien Hotel, here, today.
He said policies that will contribute positively to Malaysia’s economic outlook are those that foster innovation, gives incentive to attract foreign investments, and assurance of inclusive development.
Malaysia’s GDP growth next year is forecast to range between 4% and 5%, compared to 4% for this year, according to Bank Negara.
Ng was hopeful that the efforts by Prime Minister Datuk Seri Anwar Ibrahim will yield investments into the country, especially China, despite the bleak outlook on global economy, which also affects the country’s outlook.
“In 2024, it will mark the 50th year of bilateral diplomatic relations between China and Malaysia, where there will be substantial visits and activities between both nations,” he said.
Construction and property development to face challenges
He also hoped that the government would consider the plight of the construction and property development sectors due to the increase in the price of building materials such as ready-mixed concrete price as well as rising cost of logistics, labour, and supply of workers.
“The increase poses a serious challenge to the construction and property development industries and ultimately the rest of the supply chain,” he said.
He said Malaysia’s economic trajectory has consistently demonstrated the spirit of progress, since the early days of industralization.
“Businesses need to adapt to demographic composition changes within Malaysia that impact consumer behaviour, workforce dynamics, and overall economic demand.
“As we look ahead to 2024, understanding and adapting to shifts in demographics, such as an ageing population or changes in consumer preferences, will be integral to sustaining economic growth,” he added.
