Update on Discussions for Johor-Singapore Special Economic Zone
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the progress of the Johor-Singapore Special Economic Zone (JS-SEZ), its benefits for SMEs, and support for heartland businesses. Minister of State for Trade and Industry Mr Alvin Tan shared that discussions involve passport-free QR code clearance and a one-stop service centre, with updates planned for the 11th Malaysia-Singapore Leaders’ Retreat. The Singapore Business Federation is currently drafting a recommendation paper based on industry feedback to help shape the SEZ’s development and enhance economic connectivity. To help heartland SMEs remain competitive, Minister of State for Trade and Industry Mr Alvin Tan highlighted the Heartland Enterprise Placemaking Grant and advisory services from the Heartlands Enterprise Centre Singapore. These initiatives aim to drive footfall and support business transformation to manage challenges arising from potential shifts in spending from Singapore to Johor.
Transcript
11 Mr Kwek Hian Chuan Henry asked the Minister for Trade and Industry (a) whether an update can be provided on discussions with Malaysia in respect of the Johor-Singapore Special Economic Zone (JS-SEZ); (b) how SMEs can benefit from operating within the JS-SEZ; and (c) how local heartland SMEs can be helped to manage the challenges arising from any potential shift of spending from Singapore to Johor.
The Minister of State for Trade and Industry (Mr Alvin Tan) (for the Minister for Trade and Industry): Sir, since the signing of the Memorandum of Understanding on the Johor-Singapore Special Economic Zone (JS-SEZ) in January 2024, Singapore and Malaysia have been in discussions on early initiatives, such as passport-free QR code clearance at land checkpoints and a one-stop service centre to facilitate business approvals. The Malaysian government is separately deliberating the area and the sectors to be covered by the JS-SEZ. We are working towards an agreement on the SEZ and will provide an update to the 11th Malaysia Singapore Leaders Retreat that is going to be held later this year.
The SEZ aims to facilitate cross-border flows of goods, ease movement of people as well as strengthen the investment ecosystem in Johor. Singapore-based companies, including small and medium enterprises (SMEs) can benefit from the increased economic connectivity and comparative advantages of both Singapore and Johor. The Singapore Business Federation is drafting a recommendation paper on how to shape the development of the SEZ and is seeking views from industry.
We will continue to revitalise our heartlands and help our heartland enterprises transform to stay competitive. For example, the Heartland Enterprise Placemaking Grant that we announced in the 2024 Committee of Supply will help our heartland enterprises to lead placemaking efforts in the heartlands to encourage business growth and footfall. The Heartlands Enterprise Centre Singapore also provides business advisory services and upgrading programmes for our local enterprises.