Malaysia Teams Up With Banks to Supercharge Investments in Johor Special Economic Zone

KUALA LUMPUR (The News Pulse) – Malaysia is collaborating with various financial institutions to boost investment and funding support for its special economic zone located in the southern state of Johor, according to Economy Minister Rafizi Ramli on Monday.

Ramli emphasized that the banks' role is crucial for stimulating private sector involvement through aggregating resources and trade activities. He shared this insight during the Johor-Singapore Special Economic Zone discussion, which was designed to enhance collaborative relationships between governments, financial institutions, and financiers.

Ramli mentioned that a plan for the area surrounding Singapore will be unveiled by the end of this year, stating, "This document will serve as a guide detailing the future objectives, strategic goals, and potential investments."

The letters of intent have been signed with Bank of America, HSBC, Sumitomo Mitsui Banking Corp, CGS International Securities, Maybank, and CIMB Bank, he mentioned additionally that negotiations were ongoing with a European-based financial institution.

He provided no specifics about the accords or monetary obligations.

In January, Malaysia and Singapore established the special economic zone with the aim of increasing investments and facilitating the flow of goods and individuals between these neighboring countries.

Malaysia aims for approximately 50 projects in the designated area over the initial five-year period, alongside the creation of around 20,000 high-skilled employment opportunities.

This initiative will create and oversee an infrastructure fund aimed at assisting businesses planning to locate within the zone. Meanwhile, Singapore will institute its own fund designed to facilitate investments and back firms based in the city-state that operate there.

The Johor state chief, Onn Hafix Ghazi, who participated in the event, mentioned that during the first quarter of 2025, they managed to secure investments totaling 27.4 billion ringgits ($6.4 billion), with an additional 23 billion ringgits worth of projects expected soon.

He stated that if these figures remain consistent, Johor is expected to see total investments reaching between 50 billion to 60 billion ringgit in 2025, which would be an increase from the previous year's 48.5 billion.

($1=4.3080 ringgit)

(Reported by Ashley Tang; Edited by Clarence Fernandez)