JOHOR BARU: For business groups here, today’s signing of the highly anticipated Johor-Singapore Special Economic Zone (JS-SEZ) agreement heralds better economic opportunities.
“The signing of the SEZ is definitely a positive development. With this, we hope that Johor and Singapore can complement each other further such as in areas of human resources and land,” said South Johor Small and Medium Association president James Tan Tien Chong.
He added that the signing is a major development for Johor and could help strengthen ties with neighbouring Singapore.
“Such cooperation will be beneficial for both sides and will allow us to share a larger market, with the combined population of Johor and Singapore,” he said.The SEZ could also encourage Johoreans working in Singapore to return to the state as there would be more opportunities for them, Tan said in an interview.
The SEZ will encompass an area of 3,505sq km that includes Johor Baru, Iskandar Puteri, Pasir Gudang, Kulai, Pontian and Pengerang.
Among its targets is to get global firms as well as companies based in Singapore and Johor to expand their operations into the area.Prime Minister Datuk Seri Anwar Ibrahim and his Singaporean counterpart Lawrence Wong will sign the agreement today in Putrajaya.
Wisma Putra said in a statement yesterday that Wong would be accorded a welcoming ceremony at the Perdana Putra Complex in Putrajaya.
Besides the joint agreement on the JS-SEZ, there would also be six memoranda of understanding, and one letter of intent on education, women and social welfare, climate change, carbon capture and storage, urban development and fighting transnational crimes, said the statement.
Johor Baru Petty Traders and Small Business Owners Association secretary Mohammad Salezan Mohd Salleh expressed hope that the SEZ would create more jobs for the people.
“We welcome the SEZ as we know it could spur the local economy and provide better opportunities for the public,” he said.
However, he said there were concerns that the economic development would cause a surge in the price of goods in the state, especially in Johor Baru.
“I hope the state and federal governments will keep a close eye on this to ensure that locals benefit from the economic spillover of the SEZ,” Mohammad Salezan added.
Johor Indian Chamber of Commerce and Industry secretary-general Datuk K. Krishnan echoed similar sentiments, noting that inflation is already a major issue.
“The rental rate for shops in Johor Baru has increased fourfold compared to just a few years ago. This is on top of the rising prices of goods and the increase in minimum wage.
“We are concerned about this, though we view the SEZ as a positive step forward for Malaysia and Johor.
“Eventually, the people and businesses would have to adapt but there should be some form of support, at least during the initial implementation period of the SEZ,” Krishnan said.
