Onn Hafiz explaining JS- SEZ updates to The Star news editor Nelson Benjamin. — THOMAS YONG/The Star

Datuk Onn Hafiz gives an exclusive insight into the latest progress

By Nelson Benjamin

The newly established Johor-Singapore Special Economic Zone (JS-SEZ) has sparked significant excitement on both sides of the Johor Causeway since its launch early this year. Johor Menteri Besar Datuk Onn Hafiz Ghazi, a key proponent of this transformative initiative, speaks with The Star’s news editor Nelson Benjamin about the project’s vision, progress and major milestones.

Datuk, you have been one of the key drivers of the JS-SEZ from the beginning. How do you see the progress so far?

The progress we’ve made with the JS-SEZ reflects a much larger vision — one set by Johor Regent Tunku Ismail Ibni Sultan Ibrahim, who has consistently outlined the ambition to make Johor a thriving state economy as well as a fully developed state by 2030. His Royal Highness has not only set a bold direction but has been intimately involved in ensuring its delivery.

In His Royal Address during the recent state assembly sitting, DYAM Tunku touched on key focus areas including the economy, education, infrastructure, healthcare, poverty eradication, housing, tourism, environment, youth development and the civil service. These are not abstract ideals, they are the very pillars underpinning the JS-SEZ strategy. The success we see today is a result of the clear, focused leadership of His Royal Highness, whose commitment gives strength and legitimacy to everything we do.

The progress of the Johor–Singapore Special Economic Zone (JS-SEZ) has exceeded early expectations. Since the formal signing of the Memorandum of Understanding in January 2024 and the agreement in January 2025, we have transitioned rapidly from planning to execution. Johor has not only activated its institutional machinery, like setting up the Invest Malaysia Facilitation Centre Johor (IMFC-J) in Forest City, but has also begun real policy delivery, including fast-track immigration clearance, the QR code pilot at border checkpoints and alignment of incentives with national bodies like MITI, MIDA, SC, MDEC and IRDA.

What’s more important is the signal of confidence we’re seeing from investors. In Q1 2025 alone, Johor recorded RM30.1bil in approved investments—a dramatic increase compared to RM4.1bil in Q1 2024. This 634% year-on-year surge strongly suggests that the formalisation of the JS-SEZ has had a catalytic effect on investor sentiment. Close to 90% of these investments were located within the JS-SEZ footprint, confirming that the zone has become a magnet for capital inflows into the state, spanning advanced manufacturing, logistics, green tech and financial services. We are at the top in terms of investments in Q1 2025.

The JS-SEZ, a joint initiative between Malaysia and Singapore, is designed to leverage the complementary strengths of both nations — Singapore’s financial and technological prowess with Johor’s scale, talent and industrial base. Already, it has become the primary destination for new investments into Johor. Of course, there is still more to be done. As we move from groundbreaking to groundwork, our focus is shifting to operational readiness—ensuring the infrastructure, talent pool and digital systems are in place. But what the early data tells us is this: The JS-SEZ is no longer just a concept. It is shaping investor behaviour, redirecting capital flows and laying the foundation for Johor’s next economic ascent.