Johor-Singapore: The Johor-Singapore Special Economic Zone (JS-SEZ) is set to enhance ASEAN's supply chain efficiency and resilience, stated Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz. Additionally, he emphasized the proposed establishment of an ASEAN/Regional Comprehensive Economic Partnership (RCEP) Industrial Park within the JS-SEZ, which will aid in improving regional economic integration and attracting high-value investments.
According to BERNAMA News Agency, the proposed industrial park aligns with the aspiration to enhance supply chain efficiency and resilience. "Ultimately, we want the JS-SEZ to be more than just a bilateral framework -- it is a value proposition for the whole of ASEAN," Tengku Zafrul remarked during his keynote address at the JS-SEZ Joint Business and Investment Forum. The event, themed 'JS-SEZ: Bridging Economies, Strengthening Supply Chains', is organized by the Investment, Trade and Industry Ministry (MITI), in collaboration with Singapore's Ministry of Trade and Industry and the Johor state government. Notable attendees included Johor Menteri Besar Datuk Onn Hafiz Ghazi and Singapore's Deputy Prime Minister and Trade and Industry Minister, Gan Kim Yong.
Tengku Zafrul also mentioned the Federal government's support for the proposed regulatory sandbox initiative, which will be located at the Ibrahim Technopolis (IBTEC) and Ladang Air Manis in Kulai. He indicated that this initiative will be crucial in unlocking new waves of sustainable, high-value investments benefiting both local stakeholders and international partners.
Furthermore, Tengku Zafrul highlighted the strong trade relationship between Malaysia and Singapore. "Malaysia was Singapore's second-largest trading partner, while Singapore was Malaysia's largest export destination and second-largest trading partner globally in 2024. Our trade in 2024 was a robust US$86.69 billion (US$1=RM4.41), driven by electrical and electronics products, petroleum products, machinery, equipment and parts, agricultural, optical and scientific equipment," he added.
On the topic of tariffs, Tengku Zafrul noted Malaysia's commitment to securing a favorable resolution that preserves vital market access and supply chains, attracts continued foreign investment, and supports the well-being of its workers and businesses. He stressed that Malaysia, alongside ASEAN colleagues, will not introduce retaliatory tariffs against the United States (US). "From ASEAN's perspective, retaliation is counterproductive. Rather, the region seeks to engage constructively with the US in a forward-looking manner to strengthen economic ties and address shared challenges," he said. Domestically, he acknowledged the challenges tariffs pose to workers, manufacturers, and businesses, and expressed the need for a mutually acceptable, fair, and equitable solution both bilaterally and multilaterally.