Johor seeks to caption JS-SEZ boom

ISKANDAR PUTERI: Johor wants to turn RM132 billion in Johor-Singapore Special Economic Zone (JS-SEZ) investments into better-paying jobs and stronger local businesses.

The 2027 Budget offers measures to help small firms grow and equip Johoreans with skills for higher-value industries.

State Investment, Trade and Consumer Affairs committee chairman Lee Ting Han said the success of Johor's economic expansion must be measured by how far local businesses grow alongside multinational investors and whether Johoreans secure better-paying jobs.

He welcomed federal measures to reduce the tax burden on micro, small and medium enterprises (MSMEs), improve financing access and strengthen technical and vocational education and training (TVET).

He said these would help local companies compete for a bigger role in industrial supply chains.

The JS-SEZ logged RM132 billion in investments from 2025 to June this year, while the Nexus Sedenak industrial hub has the potential to attract RM12 billion in investments and generate 45,000 jobs, according to the 2027 Budget announcements.

The JS-SEZ masterplan and blueprint are scheduled for launch by year end, alongside a proposed task force to coordinate negotiations with companies in strategic sectors.

Lee said Johor needed to ensure local MSMEs could move beyond supporting roles and become higher-value suppliers to multinational companies entering the state.

He added that better access to financing, technology and productivity-enhancing equipment would help Johor businesses scale up and compete for contracts in the JS-SEZ.

The budget allocates RM8 billion for TVET across ministries, including RM3 billion through Human Resource Development Corp for three million skills-training opportunities and RM500 million through the Skills Development Fund Corp for training at registered institutions.

Johor's demand for skilled workers is expected to span semiconductors, advanced manufacturing, data centres, logistics, the digital economy and green energy.

Lee said the Johor Talent Development Council would continue working with education institutions and industry players to align training with employers' needs.

The budget also identifies a 1-gigawatt hybrid energy project in Johor by UEM Lestra Bhd, forming part of an RM1 billion investment package that includes energy storage at Kuala Lumpur International Airport.