Mr Chris Robblee highlighted the strategic location of Singapore and southern Johor for housing refineries due to their proximity to major shipping routes and deep-water marine accessibility. He mentioned that both locations complement each other and facilitate the growth of oil trading and refining in the region. Several business experts shared the view that the success of the proposed Johor-Singapore Special Economic Zone (SEZ) will depend on its ability to attract foreign multinational investments. Malaysia’s Economy Minister highlighted the importance of attracting international investors to the SEZ, with companies from all over the world being potential targets, drawn by Singapore’s sophistication and Johor’s lower operational costs compared to neighboring countries like Vietnam.
Companies and experts cautioned that Johor must focus on streamlining regulatory processes and improving infrastructure, particularly in the data center sector, in order to solidify its appeal as an attractive location for multinationals with regional offices in Singapore or Kuala Lumpur. There are opportunities for businesses to establish manufacturing operations, open data centers, and build petroleum refineries in Johor by leveraging its abundant land and cost-effective business environment. Suggestions were made for the Johor state government to offer incentives such as tax breaks, investments grants, subsidies, and low-interest loans to attract more investment to the region. The implementation of a “one-stop shop” for permits and approvals was also proposed to streamline regulatory processes and make decision-making more transparent.
Vopak, a company with terminals in numerous countries, currently operates in Malaysia and benefits from tax schemes such as the Investment Tax Credit and Pioneer Status Program. The company is assessing opportunities that align with its business objectives and the evolving economic landscape, but it is too early to comment on specific expansion plans in Johor and Singapore. Mr Robblee expressed optimism regarding potential tax incentive programs related to infrastructure investments, which could provide valuable opportunities for growth. The discussion highlighted the importance of attracting foreign investment to the Johor-Singapore SEZ and the need for streamlined processes and improved infrastructure to enhance its attractiveness to multinational corporations looking to establish a presence in the region.
In conclusion, the development of the Johor-Singapore Special Economic Zone (SEZ) holds potential for attracting international investors and positioning Malaysia as a competitor to countries like Vietnam in attracting multinational businesses. The success of the SEZ will depend on Johor’s ability to streamline regulatory processes, improve infrastructure, and offer attractive incentives to foreign companies. Businesses like Vopak are evaluating opportunities that align with their objectives and the evolving economic landscape, with potential for expansion in the region. The focus on creating a conducive business environment and providing incentives for investment highlights the importance of fostering growth and development in Johor and Singapore.
