Johor, especially Iskandar Malaysia, can become a viable destination for MMCs based in Singapore that are planning to relocate their operations elsewhere in the region.
JOHOR, especially Iskandar Malaysia, has the right ecosystem to attract multinational corporations (MNCs) from Singapore to relocate their operations, says a local business leader.
Iskandar Malaysia Johor Chamber of Commerce and Industry secretary general Md Salikon Sarpin said the Johor-Singapore Special Economic Zone (JS-SEZ) could position itself as an ideal destination for MNCs.
“Johor needs to work fast as countries like Indonesia, Thailand, the Philippines and Vietnam are also aggressively attracting MNCs,” he told StarMetro.
Md Salikon was asked to comment on reports that some Japanese MNCs with regional headquarters in Singapore were looking beyond the republic due to rising costs.
He said Iskandar Malaysia’s close proximity to Singapore was a strong selling point to attract foreign direct investments (FDIs).
“The government needs to quickly announce the actual location of the economic zone to send a strong signal to investors that it means business,” said Md Salikon, who was Johor commerce and industry committee chairman from 1994 to 2000.
He said foreign investors typically took two to three years to conduct feasibility studies before deciding to invest in a country.
According to Md Salikon, Johor also needed to attract more direct domestic investments (DDIs).
Apart from fast approval for investments, Johor needed to improve on infrastructure, utilities and Internet connectivity, he said.
Former state tourism, domestic trade and consumerism committee chairman Datuk Tee Siew Kiong said close relationships between the Federal and Johor governments would benefit the FDI process.
He said issuing manufacturing licences and tax incentives were under federal authority while conversion of land for industrial usage and building plans was under the purview of the state.
“Johor needs to attract more capital-intensive and high-tech investments to further strengthen its position as the preferred investment destination in Malaysia,” said Tee.
He said the way forward for Johor was to focus on artificial intelligence (AI) and robotic technology, green technology and strengthening research and development activities.
“We need to produce more semi-skilled and skilled workforce and reduce our dependence on labour-intensive activities.”
Tee said it was good for Johor to implement the Fast Lane at all local authorities in facilitating investment processes, which come under state agencies and departments.
“The presence of more MNCs in Iskandar Malaysia will create job opportunities for Johor residents and those from other states,” he said.
He added that the presence of MNCs offered growth prospects and business opportunities to small and medium industries that supply parts and components.
