PETALING JAYA: Standard Chartered’s (StanChart) new Malaysia-Singapore proposition gives small and medium enterprises (SMEs) six months of free outward telegraphic transfers between both markets, riding on a four-fold jump in Singapore-based SME investments into Malaysia, much of it flowing into the Johor-Singapore Special Economic Zone (JS-SEZ).
The bank said the offering also includes interest optimisation and access to its ecosystem partners, and is aimed at small business owners on both sides of the Causeway.
Investments the bank facilitated for its Malaysian SME clients seeking to tap Singapore’s financial hub status doubled over the past year, while those by its Singapore-based SME clients into Malaysia rose more than fourfold.
Bilateral merchandise trade climbed 25% in 2025 to US$108.4bil, more than twice its 2015 level, according to the bank.
Teresa Tah, StanChart head of medium enterprises, Singapore and Asean and global head of high value client propositions, said the opportunity lies in combining Singapore’s role as a financial, trade and innovation centre with Johor’s talent pool, cost advantages and growing consumer demand.
Asked what is driving the surge, she pointed to artificial intelligence (AI) and digital transformation, which have spilt over into other sectors, including business services.
“JS-SEZ is not reserved for large multinational companies,” she said, adding that many SMEs are using Johor for production capacity, warehousing and logistics.
“Cross-border expansion is more than finding premises or setting up an entity.
“It is about how they can integrate the operations in Singapore, Malaysia or even in other markets together,” she said, adding that the bank’s international network helps clients connect the different parts of their business.
Among those eyeing the opportunity is Stolz Engineering (Singapore) Pte Ltd, which expanded into Malaysia in 2024. Senior operations manager David Ling said the firm sees plenty of openings in the AI sector.
“We have recently been awarded a major semiconductor cooling project in Singapore,” he said, citing about 100,000 refrigerant tonnes of capacity, roughly equivalent to 50,000 typical household air-conditioning units.
The company is also exploring energy-efficient cooling solutions with Singapore Polytechnic.
“We also do Internet of Things (IoT), IoT digitalisation and IoT monitoring.
“So I believe this will put us in a strong position to support this AI trend,” he said.
Ling said Stolz is the sole distributor of Marley Cooling Towers in Singapore, Thailand and some parts of Malaysia, where two to three distributors operate.
It can supply towers that run on different water sources, including NEWater, seawater or atmospheric air, depending on customer needs.
With orders up 30% to 40% above its average operating year, Stolz is looking at another facility. “We are planning to expand our cooling tower services much more in Malaysia,” he said.
The bank unveiled the proposition at its JS-SEZ Business Mission and Forum in Johor yesterday, attended by more than 100 business leaders.
Participants also toured IOI Industrial Park @ Iskandar Malaysia and AIMAZ Group. Harmander Mahal, Standard Chartered head of wealth and retail banking for Malaysia and Indonesia, called the JS-SEZ a “transformative growth corridor” for Malaysia.
“As SMEs look to scale across borders, they need more than financing, they need a banking partner with true cross-border capabilities,” he said.
