JOHOR BARU: Johor's multifaceted economy will help cushion the state against global instability, says Datuk Seri Hasni Mohammad.
The state investment and economic advisor said Johor remained a major contributor to the national economy through manufacturing, agriculture and the services sector.
"The economy is dynamic, so while costs may rise, we still have the capacity to keep supplies flowing," he told a press conference after a Hari Raya charity event at a hotel here on Sunday (April 19).
He stressed that it was important for the state to have clear communications to foreign investors in order to address their concerns, particularly those from neighbouring Singapore.
Direct engagement by the state leadership is important to reassure investors and avoid misinformation, he added.
Hasni said, for example, some investors had misunderstood the state’s encouragement for data centres to develop alternative water sources as a sign of insufficient supply.
"That is not the case. Our supply is sufficient, but we are looking at long-term sustainability and asking investors to also invest in infrastructure," he added.
The same principle applied to the energy sector, where investors were encouraged to adopt technologies that reduce consumption, he said.
With the Middle East crisis increasing competition among countries for resources and supplies, Hasni welcomed Putrajaya's efforts to strengthen border control and protect the nation's supply chain.
He noted that Malaysia's dependence on imports of many essential goods and materials left it vulnerable to external shocks.
"Even if the ringgit strengthens, that does not automatically mean it will be easier for us to obtain supplies because we are competing with other countries for the same resources," he said.
Hasni, a former Johor mentri besar, said smuggling was a concern because porous borders could allow essential goods to be taken out of the country illegally.
"One way to ensure that supply can meet domestic demand is to prevent leakages.Our borders can be porous and smuggling can happen easily if enforcement is weak," he said.
He also expressed confidence that Johor’s ports would continue operating normally amid widening geopolitical uncertainty.
Hasni said the state’s port infrastructure remained capable of supporting both imports and exports.
"Our ports are still operating as usual and I believe they can continue to support trade," he said.
