Johor: Johor is committed to sustaining its position as a leading investment destination and to remain at the forefront of foreign direct investment (FDI) inflows, which reached RM110.1 billion in 2025, the highest among all states.
According to BERNAMA News Agency, Johor State Economic and Investment Advisor Datuk Seri Hasni Mohammad stated that the state will not remain complacent despite its strong performance, but will enhance its competitiveness and investment ecosystem continuously. He emphasized that the Johor-Singapore Special Economic Zone (JS-SEZ) will serve as a key blueprint to provide clarity and certainty for both new and existing investors, while also enabling the state to retain and expand current investments.
Hasni highlighted the importance of maintaining Johor's momentum as a preferred destination for investors. He stressed that the focus should not only be on attracting new investments but also on reclaiming and strengthening investments that are already in Johor. The JS-SEZ is intended to address uncertainties and provide a clear framework for investors, he mentioned at the Asia Summit on Advanced Innovation and Manufacturing 2026.
Efforts to enhance Johor-Singapore cross-border connectivity are being accelerated under the JS-SEZ, including the implementation of QR code immigration clearance, digital cargo systems, and the upcoming Rapid Transit System (RTS) Link. The RTS Link, scheduled to commence in January 2027, is expected to carry up to 10,000 passengers per hour each direction, potentially transforming travel patterns across one of the world's busiest land border crossings that currently records about 300,000 daily travellers, including 100,000 motorcyclists.
Hasni, also serving as the Johor Economic, Tourism and Cultural Office Singapore (JETCO) executive chairman, mentioned that improved connectivity could significantly alter commuting trends, facilitating more efficient travel and increasing movement between Johor and Singapore in both directions.
On the industrial front, Johor hosts the largest number of data centers in Southeast Asia, accounting for more than 50 percent of the state's total FDI last year. However, Hasni acknowledged the sector's high demand for electricity and water poses sustainability challenges, particularly amid climate change and resource constraints.
He emphasized the need to transition away from coal-based energy towards renewable energy to remain attractive to investors while ensuring long-term sustainability. The state has established the Johor Sustainability Centre to drive green initiatives and technological adoption to support this transition, and is encouraging industries to improve energy efficiency. A total of 126 companies have been identified as managing energy inefficiently, and the government is offering incentives and tax allowances to encourage a shift towards renewable energy usage.