19-4-2024 (KUALA LUMPUR) The southern Malaysian state of Johor is primed to outpace the economic growth of its counterparts within the next couple of years, Prime Minister Anwar Ibrahim declared on Thursday (Apr 18). This anticipated surge is attributed to the impending implementation of high-impact initiatives, namely the Johor-Singapore Special Economic Zone (SEZ) and the establishment of a special financial zone within the confines of Forest City.
Addressing reporters during the Madani Aidilfitri 2024 celebration in Johor Bahru, Mr Anwar expressed confidence that “Both (projects) will ensure a more rapid growth (for Johor). They are still being formulated but will help in accelerating economic growth.”
In January, Singapore and Malaysia inked a Memorandum of Understanding concerning the Johor-Singapore SEZ, a collaborative endeavour aimed at bolstering cross-border economic connectivity. The MOU outlines a framework for both nations to work towards facilitating the seamless movement of goods and people across the border, ultimately culminating in a comprehensive agreement regarding the zone.
Complementing this initiative, preliminary measures are being explored, including the implementation of a passport-free clearance system on either side of the border.
Concurrently, last August, Mr Anwar unveiled plans to designate the embattled Forest City project in Johor as a special financial zone, a strategic move intended to stimulate economic activity within the Iskandar Malaysia region. This zone would offer a suite of enticing business incentives, such as a flat income tax rate of 15 per cent for skilled foreign workers, a notable reduction from the prevailing 30 per cent rate elsewhere. Additionally, multiple entry visas and expedited entry procedures for Singapore-based personnel are on the table.
“I am confident this will attract many companies which are experiencing high operating costs in Singapore,” Mr Anwar had remarked at the time.
In his Thursday address, the prime minister reiterated Johor’s pivotal role as a driving force behind Malaysia’s growth, with the state’s progress and development ranking among the nation’s foremost.
“We are establishing a special economic zone that can develop a close relationship with Singapore and we are setting up a special financial zone in Forest City. These indicate that Johor will record a very rapid growth,” he asserted.
Mr Anwar further highlighted Johor’s commendable performance in alleviating hardcore poverty, with less than 2,000 individuals classified within this bracket – a challenge he believes can be surmounted in the short term, effectively eradicating hardcore poverty within the state.
Concurrently, other crucial initiatives, such as flood mitigation programmes, are being prioritised to address the pressing issues faced by Johor’s populace.
“We cannot just strive for big growth. Floods are also sizeable so the flood mitigation programme is given priority. I want the leaders and officials to monitor to ensure that the project is carried out swiftly so that the problem faced by the people is resolved,” he emphasised.
Underscoring the importance of ethical governance, Mr Anwar urged Johor’s leaders to ensure the state’s administration remains untainted by corruption while safeguarding the interests of its people.
Furthermore, the prime minister stressed that development in any state should be holistic, encompassing not just physical infrastructure but also human development to ensure the well-being of its citizens.
“Do not focus (just) on buildings, industries and highways, while trivialising people.
“What is the meaning of development if we neglect the poorest people who lack opportunities, whether they are Malay, Chinese, Indian or Orang Asli? They are all Johoreans and must be given a place and afforded the utmost protection,” he concluded.
