OCBC Bank managing director and head of wholesale banking Jeffrey Teoh
PETALING JAYA: OCBC Bank (M) Bhd is optimistic about the significant potential of the Johor-Singapore Special Economic Zone (JS-SEZ) amid ongoing global economic uncertainties, which include the tariff impositions by the United States on several countries.
OCBC Bank managing director and head of wholesale banking Jeffrey Teoh told StarBiz there were uncertainties following the recent tariff by president Donald Trump, particularly relating to China and its expected spillover effects on Asean, given its status as a major trading partner.
Notwithstanding this, he anticipates that the impact on Asean would be more gradual than immediate, possibly resulting in a near-term drag on growth.
But he said this would be balanced out by continued foreign direct investment (FDI) inflows into the region, especially into Malaysia, particularly from US firms in China seeking diversification and from Chinese enterprises looking to enhance the “China + 1” strategy through greater local co-ownership.
China + 1 refers to the business strategy to avoid investing only in China and diversify business into other countries.
“We remain excited about the prospects of FDI flows into Malaysia, especially with the JS-SEZ agreement signed last month and the suite of incentives to attract FDI investments, including tax exemptions, grants, and streamlined regulations.
“The strengthened economic alliance between Singapore and Malaysia, highlighted by the JS-SEZ offering the combination of Johor’s resources and cost benefits with Singapore’s strength as a regional control tower and financial hub, positions the JS-SEZ as an appealing and resilient investment destination,” he noted.
With anticipated growth in FDI, the bank also foresees a positive ripple effect leading to increased domestic direct investment from local corporations and small and medium enterprises (SMEs) capitalising on the expanding supply chain ecosystem within the zone.
“We are prepared and committed to support individuals and businesses in their goals to establish and expand their presence in the JS-SEZ by providing a seamless onboarding experience tailored to their unique needs,” Teoh added.
He added that OCBC, as a group, is dedicated to helping its customers connect with opportunities within the JS-SEZ through a series of curated events.
These include industry-specific visits to Johor in collaboration with its network of knowledgeable and trusted partners of corporate secretaries, advisers and government agencies.
“We have set up a dedicated team of 25 experienced bankers, 15 in Singapore and 10 in Malaysia, focusing on providing customers a comprehensive suite of financing solutions to meet their needs within the zone through the seamless service within our network across the region.
“We are excited about the opportunity to play our part in the development of JS-SEZ as an economic hub and gateway into the rest of Asean and as far as Greater China and beyond,” Teoh added.
OCBC offers a comprehensive suite of financial services and support mechanisms aimed at facilitating a smooth entry and expansion for corporates and SMEs alike, ensuring they are empowered to navigate the complexities of the market with ease.
