Johor’s rapid growth is driven by its connectivity with Singapore (at right, in the background).
Exco: Johor broadens its industrial play beyond data centres
Johor is to further diversify its investment portfolio as it seeks to bolster its standing as one of the region’s premier investment hubs.
State investment, trade, consumer affairs and human resources committee chairman Lee Ting Han said the state was also focusing on other economic activities to attract investors.
“We would like to correct the misconception that too much attention is being given to data centres, hence neglecting other economic segments,” he said.
Lee said Johor’s rapid growth in becoming South-East Asia’s top data centre hub was driven by its excellent connectivity with Singapore and regional markets.
He said the state had given equal attention to other industries, and was not only focused on certain core economic sectors.
“We did want to risk putting all our eggs into one basket,” said Lee, adding that Johor has the right ecosystem to cater to domestic and foreign investments.
He said securing approved investments of RM91.1bil as of the third quarter (Q3) of 2025 was a powerful vote of confidence in Johor as a preferred investment destination.
Lee said the amount, which was higher compared with the total approved investment of RM48.5bil for 2024, proved that Johor remained attractive to investors.
“We hope to maintain the momentum in 2026 and record even higher investment figures for the year,” he said.
Lee said semiconductors, equipment and materials, electronic and electrical products, halal food processing, oil and gas-related industries, and distribution and logistics services would continue to strengthen Johor’s position as a leading investment destination.
He said while the southern corridor around Iskandar Malaysia continued to grow rapidly, the state government was focused on developing all districts equally.
The 10 districts in Johor are Johor Baru, Batu Pahat, Kluang, Kota Tinggi, Kulai, Mersing, Muar, Pontian, Segamat and Tangkak.
“Developing every district will create new jobs, technical training opportunities and local supply-chain linkages for small and medium-sized enterprises (SMEs), ensuring communities outside south Johor and Iskandar Malaysia also benefit from the state’s high-growth momentum.”
He said Johor’s collaboration with Singapore through the Johor-Singapore Special Economic Zone (JS‑SEZ) was designed to deepen cross-border integration in manufacturing, logistics and talent mobility.
“While its initial focus is on key zones around Johor Baru and Iskandar Malaysia, the impact of the JS‑SEZ will eventually be felt across Johor,” assured Lee.
He said the state government remained firmly committed to strengthening its business ecosystem through initiatives such as the Invest Malaysia Facilitation Centre Johor (IMFC‑J) and the Johor Talent Development Council (JTDC).
“Our goal is to ensure that every investor – be it SMEs or multinationals – can thrive here, and be supported by an efficient, transparent and proactive administration,” he said.
