PETALING JAYA: As the United States’ new tariffs rattle the world economy, Malaysia is betting on the Johor-Singapore Special Economic Zone (JS-SEZ) to help it overcome the turbulence.
Economy Minister Datuk Seri Rafizi Ramli (pic) said the zone, launched in January, promises to be the latest growth area for high-value enterprises and high-paying jobs, similar to the industrial hubs of the Klang Valley and Penang.
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Rafizi announced that five industries and sectors have been designated as core drivers in the zone.
He said these sectors are expected to drive much of the investment and enterprises that will achieve the target of 20,000 high-skill jobs in 10 years.
These industries are advanced electrical and electronics (AE&E), medical devices, aerospace, chemicals, and pharmaceuticals.
Leaders from AE&E, medical devices, and aerospace told The Star that they see much promise in the JS-SEZ and believe they can build the projects and provide Malaysia with the high-paying jobs it wants.
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However, to achieve this, they need help to overcome several hurdles and plug gaps in the supply of high-skilled workers, infrastructure, logistics, and the conversion of inventions into viable products.
In separate interviews, they shared their unique challenges with The Star.
Muhammad Muza Muhayen, a member of a medical devices group, spoke of how different medical standards are preventing manufacturers from entering high-value markets such as the United States and Europe.
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The Federation of Malaysian Manufacturers spoke of how AE&E, as a subsector of the larger E&E industry, will require the country to invest more in research than it currently spends.
The federation also worries about whether Malaysia can provide the talent with the right skills to fulfil the needs of all these industries.
David A. Jones, a representative from the Malaysian aerospace industry, said this is especially true since such sectors deal with and are plugged into global supply chains.
Another medical device industry leader, Dr Hyzan Mohd Yusof, said although the zone is advantageous during the trade war between the US and China, as foreign companies will return to Malaysia, home-grown manufacturers should not be complacent.
“Malaysian-owned companies must also take advantage and make their presence felt in the zone because it is a real opportunity for Malaysians to grow,” he said.
“To make the zone a success, we must have new markets, and the best salesman is our own Prime Minister.
“So we have to create our own brands and market them so that they can grow.”
